Bulgarian Cosmetics Manufacturer Fined for Unfair Competition

Bulgaria’s Supreme Administrative Court (SAC) has recently upheld Bulgaria’s Commission for Protection of Competition (CPC) decision against Bulgarian cosmetics manufacturer TSH Cosmetics, which produced and sold children’s shampoo similar to the shampoo produced by Bulgaria’s oldest cosmetics company Alen Mak.

The CPC issued the decision against THS Cosmetics in June 2010 on the grounds of Article 35, Paragraph 2 of the Law on Protection of Competition. This provision prohibits the use of a trade name, mark or geographical indication identical or similar to those of other persons, in a manner that may injure the interests of competitors.

The investigation ascertained that the defendant produced and distributed in Bulgaria and Russia shampoo Adventure (left), which resembled the mark and the overall appearance of shampoo Pa-Pa produced by Alen Mak (right). The CPC ruled that the similarity was sufficient to mislead consumers and undermine brand distinctiveness.

In its final decision the SAC entirely accepted the CPC’s arguments and upheld the CPC’s decision fining the defendant EUR 73,220 (USD 96,174) for the infringement.

For more information, please contact Valeri Penev at our Bulgaria office.

Source: Bulgaria’s Commission for Protection of Competition