Competition Appellate Tribunal Upholds CCP Penalty on Karachi Nimco

The Competition Appellate Tribunal (CAT) has dismissed the appeal filed by M/s Karachi Nimco, upholding the order of the Competition Commission of Pakistan (CCP) that imposed a penalty of Rs. 20 million for deceptive marketing practices and trademark imitation. The appeal was dismissed due to non-pursuance by the appellant. Notably, this marks the second time the Tribunal has dismissed the appeal on the same grounds. Following the first dismissal, the company had filed application for restoration, which the Tribunal accepted. However, during the subsequent proceedings, the company’s legal counsel again failed to appear, prompting the Tribunal to dismiss the appeal and express displeasure over the use of delaying tactics. The Competition Commission of Pakistan (CCP) had received a complaint in 2019 from M/s Nimco Corner, alleging that two competitors—M/s Nimko Corner and M/s Karachi Nimko—were imitating its trademark, packaging, and overall trade dress. Following a detailed inquiry, the Commission found both M/s Nimko Corner and M/s Karachi Nimko in violation of Section 10 of the Competition Act, 2010, for engaging in deceptive marketing practices. The investigation revealed that the companies misled consumers by unlawfully replicating branding elements, thereby harming fair competition. Both parties admitted to the unauthorized use of trademark and trade dress. As a result, the CCP imposed a penalty of Rs. 25 million on M/s Nimko Corner and Rs. 20 million on M/s Karachi Nimko. Additionally, the Commission directed the companies to cease the use of the infringing branding and submit a compliance report outlining the corrective actions taken. M/s Karachi Nimko filed an appeal against the CCP’s order, which the Competition Appellate Tribunal has dismissed. This enforcement action reaffirms CCP’s resolve to curb deceptive marketing practices, protect intellectual property rights, and promote a fair and transparent marketplace for businesses and consumers alike.