ISLAMABAD: The Competition Appellate Tribunal (CAT) has upheld a Rs20 million penalty imposed on M/s Karachi Nimco by the Competition Commission of Pakistan (CCP), dismissing the company’s appeal due to non-pursuance and reaffirming the CCP’s findings of deceptive marketing and trademark imitation.
The Tribunal noted that this was the second time the appeal had been dismissed for lack of prosecution. Initially, the appeal was dismissed due to the appellant’s absence. Although the company subsequently filed a restoration application—which was granted—their legal counsel again failed to appear at later proceedings. Expressing concern over what it viewed as deliberate delaying tactics, the Tribunal dismissed the appeal once again, allowing CCP’s original order to stand.
The case stems from a 2019 complaint lodged by M/s Nimco Corner, which alleged that two competitors—M/s Nimko Corner and M/s Karachi Nimko—were unlawfully imitating its trademark, packaging, and overall trade dress, thereby misleading consumers and creating market confusion. After a detailed inquiry, CCP found both companies in violation of Section 10 of the Competition Act, 2010, which prohibits deceptive marketing practices.
The CCP’s investigation concluded that both M/s Nimko Corner and M/s Karachi Nimko had indeed misused branding elements, including packaging and trade names, to mimic the complainant’s identity in the marketplace. Both parties admitted to the unauthorized use of trademark and trade dress during the proceedings.
As a result, the CCP imposed a penalty of Rs25 million on M/s Nimko Corner and Rs20 million on M/s Karachi Nimko. The Commission also directed both companies to cease using the infringing branding and to submit compliance reports detailing the corrective measures taken.
M/s Karachi Nimko challenged the decision before the Competition Appellate Tribunal, but the repeated failure to pursue the case resulted in the dismissal of its appeal, effectively upholding the CCP’s order.
This enforcement action underscores the CCP’s commitment to protecting consumer rights, curbing deceptive marketing practices, and promoting fair competition. It also reinforces the importance of safeguarding intellectual property and ensuring that businesses compete on merit rather than imitation.
