CCP fines Mezan Beverages PKR 150 million for deceptive energy drink branding

Pakistan’s competition watchdog has fined Mezan Beverages (Private) Limited PKR 150 million for deceptive marketing after finding that its “Storm” energy drink unlawfully imitated the packaging and trade dress of PepsiCo’s “Sting” brand, officials said Thursday.

The Competition Commission of Pakistan (CCP) said Mezan violated Section 10 of the Competition Act, 2010, by copying the overall look and feel of Sting in a manner likely to mislead consumers at the point of sale. The commission ruled that Mezan’s conduct amounted to parasitic copying and constituted deceptive marketing under competition law.

According to the CCP’s order, Storm replicated key visual elements of Sting, including a red-dominant color scheme, bold slanted white lettering, aggressive visual motifs, and a near-identical bottle shape and presentation. The commission said these similarities created a strong likelihood of consumer confusion, particularly among ordinary buyers with imperfect recollection.

The case dates back to 2018, when PepsiCo Inc. filed a complaint alleging that Mezan designed Storm to benefit from Sting’s established goodwill. The CCP said the inquiry was delayed for several years after Mezan repeatedly challenged the regulator’s jurisdiction and obtained stay orders from the Lahore High Court in 2018 and 2021.

In June 2024, the Lahore High Court dismissed Mezan’s petition, upheld the CCP’s authority, and ruled that early challenges to show-cause notices were not maintainable. The court also clarified that proceedings under the Competition Act are distinct from trademark disputes and observed that Mezan had used litigation to delay regulatory action.

In its findings, the CCP emphasized that deception is assessed on the basis of the overall commercial impression rather than minor differences identified through side-by-side comparison. The commission said Mezan’s registered trademark for “Storm” did not provide immunity from competition law where consumer deception and passing-off were established.

While imposing the PKR 150 million fine, the CCP said misleading packaging and copycat branding would not be tolerated, regardless of a company’s size or local status, reaffirming its commitment to protecting consumers and fair competition in the marketplace.