Mumbai: Asci and K&S Partners in a recently released whitepaper titled “Misleading Advertisements and Trademarks-A Registration Conundrum” identified the practise and instances of brands making misleading claims and representations through the use of trademarks.
It has often been noted that businesses register misleading or even deceptive descriptive or laudatory terms, slogans, etc. as trademarks. These words describe the product’s unsupported nature, quality, or quantity, which ends up misleading consumers. For instance, a sweater brand called “All Wool” implies that it is made of wool. However, if the actual products are not made entirely of wool, such a trademark can be misleading. Similarly, a product with the trademark “Wholewheat Marie,” which contains refined flour as the dominant ingredient, misleads consumers as to the health and nutritional values of such products. The use of such trademarks that falsely describe product attributes is a potential breach of both the Consumer Protection Act and the Asci code.
Brands and advertisers often cite trademark registrations as a defence. These words or phrases mislead consumers. However, this paper argues that such a defence is not valid as making misleading representations violates the Asci code, the Consumer Protection Act, and the Trade Marks Act itself. The paper calls for greater scrutiny and restraint in permitting descriptive trademarks for brands and to ensure that such trademarks are not a false representation of the product.
Asci CEO & secretary general Manisha Kapoor said, “At Asci we see cases where the advertiser uses a trademark registration to defend their direct or implied claims, asserting that a trademark registration means that the claim is good in law. This is not true, and we would ask brands to be cautious in using untrue, exaggerated or misleading phrases to describe their products, whether trademarks or not.”
K&S Partners’ Prashant Gupta said, “The issue concerning false, unsubstantiated, and dishonest advertisements, under the guise of descriptive or laudatory trademarks, is grave. Protecting consumers from deception is one of the principal tenets of the Asci code, the Trade Marks Act, and the Consumer Protection Act. The trademark office needs to raise the threshold for descriptive or laudatory trademarks, failing which, protecting consumers’ rights from fraudulent marks and making informed choices would be severely compromised.”
Check the full report here: https://ascionline.in/images/pdf/misleading-ads-and-trademarks.pdf
PepsiCo pleaded with the court to restrain the Mumbai-based beverages company from “infringement, passing-off, dilution, and unfair trade competition”. The court directed Parle Agro to file a written response in a month while fixing the next date of hearing on 16 July.
On the other hand, the New York-based giant has used “For The Bold’ as a tagline for its tortilla chips brand Doritos since 2013. According to PepsiCo, Doritos is a $1-billion-plus flagship brand that is one of the fastest-growing snack brands in the snacks and beverage major’s portfolio. In 2017, the company announced that it is producing Doritos in India at its snacks manufacturing facility in Kolkata.
