The Competition Appellate Tribunal (CAT) has dismissed the appeal filed by M/s Karachi Nimco, confirming a penalty of Rs20 million imposed by the Competition Commission of Pakistan (CCP) for deceptive marketing practices and trademark imitation.
This is the second time the Tribunal has dismissed the same appeal due to non-pursuance by the appellant.
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History of the Case
The matter began in 2019, when M/s Nimco Corner filed a formal complaint with the CCP. The company accused two competitors—M/s Nimko Corner and M/s Karachi Nimko—of imitating its trademark, packaging, and trade dress.
After conducting a detailed investigation, the CCP concluded that both companies had engaged in deceptive marketing, violating Section 10 of the Competition Act, 2010.
The investigation found that consumers were being misled by copycat branding, which unfairly damaged the original company’s market position.
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Penalties and Compliance Orders
As a result of the findings, the CCP imposed the following penalties:
• Rs25 million on M/s Nimko Corner
• Rs20 million on M/s Karachi Nimko
In addition to the fines, both companies were ordered to cease the use of infringing branding and submit a compliance report detailing corrective actions.
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Appeal Dismissed Twice by the Tribunal
M/s Karachi Nimko had initially filed an appeal against the CCP’s decision. However, the appeal was first dismissed for non-pursuance.
Following that, the company applied for restoration of the appeal, which the Tribunal accepted. But once again, legal counsel failed to appear during the proceedings, leading to a second dismissal.
The Tribunal also expressed strong disapproval of the delaying tactics employed by the appellant.
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CCP’s Commitment to Fair Competition
The CCP’s enforcement action highlights its ongoing efforts to:
• Prevent deceptive marketing
• Protect intellectual property
• Ensure a fair and transparent marketplace
This case serves as a clear message to businesses engaging in unfair competition that such practices will not go unchecked.
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Conclusion
With the Tribunal’s dismissal of the appeal, the original penalty on M/s Karachi Nimco remains in effect. The case underscores the importance of compliance with competition laws and reinforces the CCP’s role in protecting market integrity.