Accused of imitating Sting’s overall design, color scheme, bottle shape and branding.
The Competition Commission of Pakistan (CCP) on Friday imposed a fine of Rs 150 million on Mizan Beverages (Pvt) Ltd for copying the packaging and trade dress of PepsiCo’s ‘Sting’ energy drink.
According to the Commission, Mizan’s ‘Storm’ energy drink imitated the overall design, color scheme, bottle shape and branding of Sting, creating a clear likelihood of confusion among consumers. The Commission categorized this as parasitic copying, violating Section 10 of the Pakistan Competition Act 2010.
Section 10 of Pakistan’s Competition Act 2010 prohibits companies from engaging in “deceptive marketing practices.”
The Act defines deceptive practices as: the distribution of “false or misleading information that may harm the business interests of others”; distributing false or misleading information to consumers; “false or misleading comparison of products in the advertising process”; or the “fraudulent use of another’s trademark, company name, or product labeling or packaging.”
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The case was pending since 2018. PepsiCo Inc. had filed a complaint alleging that Mizan Beverages designed ‘Storm’ to closely resemble Sting and illegitimately benefit from the reputation of the PepsiCo brand. Instead of addressing the merits, Mizan challenged the Commission’s authority in court and obtained injunctions that repeatedly delayed the investigation for several years.
Last year, the Lahore High Court rejected Mizan Beverages’ petition, confirming the PCC’s authority to conduct the investigation. The court noted that Mizan used injunctions to stay the Commission’s proceedings and ordered the CCP to complete its investigation and issue a decision.
The Competition Commission’s detailed ruling noted that Storm’s red color scheme, bold, slanted white lettering and bottle shape closely resembled Sting. These brand elements could mislead ordinary consumers. The Commission stressed that having a registered trademark for ‘Storm’ does not exempt a company from competition law if it misleads consumers.
PCC Chairman Dr Kabir Sidhu said brand copying and use of misleading packaging and marketing will not be tolerated, irrespective of the size of the company, and strict action will be taken.
