CCP fines inspection firm Rs5 million over deceptive use of trademark

ISLAMABAD: The Competition Commission of Pakistan (CCP) has imposed a Rs5 million penalty on M/s MCI-Bureau of Inspection & Certifications Pakistan for fraudulently adopting a trademark and logo closely resembling those of Bureau Veritas, a France-based global testing, inspection and certification company.

The CCP found the company in violation of Section 10 of the Competition Act, 2010.

Bureau Veritas had complained that MCI-Bureau of Inspection & Certifications Pakistan and MCI-Bureau of Inspection & Certifications United Kingdom were using a deceptively similar trade name and logo that could mislead consumers into believing their services were associated with the complainant.

According to a statement issued by the commission, the respondent copied dominant features of Bureau Veritas’ registered trademark and logo, including the word “Bureau” and other distinctive elements.

Applying the principles of “overall similarity” and “net general impression”, the commission ruled that the similarities amounted to the fraudulent use of another undertaking’s trademark under the Competition Act.

It held that differences in colour schemes did not sufficiently distinguish the respondent’s logo, particularly because inspection reports and certification documents are often reproduced in black and white, and consumers do not usually compare competing logos side by side.

The CCP also found that MCI-Bureau was aware of Bureau Veritas’ longstanding reputation and goodwill. It said the company’s withdrawal of its trademark registration application after receiving a show-cause notice reinforced the conclusion that it recognised the similarity between the two marks.

The commission further ruled that the respondent had failed to establish the expertise, technical competence and accreditation required to provide specialised certification services.

It observed that the company’s subsequent business, “Inspect Assure”, also lacked credible evidence of competence and accreditation, creating a risk of consumer deception.

Besides imposing the penalty, the CCP directed MCI-Bureau to stop using the disputed trademark, adopt a clearly distinguishable mark, obtain the required accreditation before offering certification services and submit a compliance report within 60 days.

The commission warned that failure to comply could result in further penalties.

It said the decision was aimed at protecting consumers and legitimate businesses from deception, preserving confidence in testing and certification services, and preventing companies from unfairly benefiting from the reputation of established international brands without possessing comparable expertise, competence or accreditation.