Two companies issued show cause notices over deceptive marketing practices

As per CCP's report, SM Food Makers and Volka Food Int'l were deceptively copying the trademark of various products belonging to Ismail Industries Ltd

ISLAMABAD: The Competition Commission of Pakistan (CCP) has issued show cause notices to SM Food Makers Limited and Volka Food International Limited for deceptively copying the trademark/trade dress of various products belonging to Ismail Industries Limited, thus prima facie violating the Section 10 of the Competition Act.

Ismail Industries Limited had sent a formal complaint alleging that SM Food Makers and Volka Food were fraudulently copying the trademark and packaging/labelling of its famous brands namely Chili Mili, ABC Jelly, Yums, Chocolate Chip, Butterscotch and Peanut Cookies, according to a statement issued by CCP on Tuesday.

The CCP’s inquiry concluded that SM Food Makers was fraudulently using registered trademarks and packaging/labelling of above mentioned products of Ismail Industries.

Volka Food, on the other hand, was also fraudulently using the trademarks and packaging/labelling of Chocolate Chip, a product of Ismail Industries.

These practices were potentially harming the business interest of IIL besides misleading the consumers.

On recommendations of the inquiry report, a show cause notice has been served to SM Food Makers and Volka Food and both the companies have been directed to respond within 14 days and to appear before the commission (via video conferencing due to Covid-19 health advisory).

CCP is mandated under the Competition Act to ensure free competition in all spheres of commercial and economic activity, to enhance economic efficiency and to protect consumers from anti-competitive practices including deceptive marketing practices.

Must Read

Pakistan’s IT exports could exceed $25b through better utilization of resources:...

ISLAMABAD: Prime Minister Shehbaz Sharif has said that Pakistan's IT exports could exceed twenty-five billion dollars through better utilization of resources and provision of training...