If you’re a fan of local energy drinks, we have some good news and some bad news. The good news is, that Mezan is coming out with another exciting drink, “Storm”. The unfortunate news is that they got sued by Pepsi Co Inc. It seems Pepsi and Mezan are head-to-head in an ongoing battle for their energy drinks.
Mezan Fights Allegations In Court
On June 28, 2024, the Lahore High Court dismissed a writ petition filed by Mezan Beverages Pvt. Ltd against the Competition Commission of Pakistan (CCP). And if you don’t know already, a writ petition enforces your rights. This petition was in response to a show-cause notice issued by the CCP regarding alleged deceptive marketing practices.
The issue began when Pepsi Co Inc. complained under section 37(2) of the Act. They claimed that Mezan was copying the packaging of Pepsi’s energy drink ‘Sting’ for its own product ‘Storm’. Following this complaint, the CCP conducted an inquiry and recommended a show-cause notice to Mezan Beverages.
In response, Mezan Beverages filed a writ petition. They did so to challenge the CCP’s inquiry process. Moreover, the issuance of the show-cause notice. In August 2021, the Lahore High Court temporarily suspended the show-cause notice, halting the CCP’s proceedings.
However, after a detailed hearing, the Lahore High Court upheld the Supreme Court of Pakistan’s decision in ‘CCP v. Dalda Foods Ltd’, which supported the statutory powers of the CCP to initiate inquiries and gather information.
It is vital to share that the court clarified the distinct jurisdictions of the CCP and the Intellectual Property Organization of Pakistan (IPO). The CCP deals with competition law, while the IPO focuses on intellectual property laws. Both bodies have separate regulatory frameworks and mandates. The IPO Act specifically excludes the competition law from its schedule. This helps indicate that the legislature intended for the CCP to have jurisdiction over deceptive marketing practices.
This ruling highlights the importance of maintaining distinct regulatory bodies for different legal domains and supports the CCP’s role in promoting fair competition in Pakistan.
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