Delhi HC slaps notice to firms misusing Snapdeal trademark in fraudulent schemes

The Delhi High Court has issued notices to entities, which are misusing Snapdeal brand name to run fraudulent schemes and sought answers from them in a month time.

In the interim order, Justice JR Midha said that it was satisfied with an ex-parte ad-interim injunction and restricted defendants from passing off their activities and business as that of the e-commerce behemoth till the next date of hearing on January 8.

It also directed web hosting firms such as Go Daddy and Endurance Domain Tech LLC and Wild West Domian LLC to suspend infringing domain names. The bank accounts, of the entities, used in these activities be frozen, it added.

Earlier, Jasper Infotech, which runs Snapdeal, had complained that many entities are misusing the brand's name in fraudulent schemes. They indulged in using its name to get the trust of the people and inducing them to pay money on the basis of false promises of expensive gifts like cars, cash, and others.

The fraudulent schemes were disbursed through SMSes and phone calls. The Gurugram-based firm has demanded action against the offenders for infringing and misusing its trademark.

There have been many reports of sellers misusing online marketplace to sell fake goods. To combat it, Snapdeal last week launched Brand Shield to fight counterfeits and infringement activities.

Meanwhile, a survey by LocalCircles early this month revealed when people were asked which e-commerce firm sends most fake products, 37 per cent said Snapdeal, 22 per cent said Flipkart, 21 per cent said Paytm Mall, and 20 per cent said Amazon.