Passing Off

Abstract

The practice of passing off involves one trader giving consumers the impression that his goods are those of another trader who has an established goodwill. It also occurs where one trader indicates that his goods are of the same quality as those of another trader or where one trader creates the impression of association with another trader. Where an existing trader has a reputable and popular product or service, another trader will hope to take advantage of the goodwill that has been established in that product or service, by confusing consumers into purchasing his goods instead of those of the first trader. The first trader suffers lost sales as consumers buy goods from the trader who is passing off, believing them to be the same (or of the same quality) as those of the genuine trader. Where the second trader’s goods are not of the same standard, there is added damage as consumers will assume that the substandard goods come from the first trader. There is, therefore, a loss of sales coupled with a loss of reputation.