Mandela Discount Shop's branding under scrutiny

A Limpopo store has found itself in legal hot water as the Nelson Mandela Foundation (NMF) takes a stand against the unauthorised use of the late former president’s name.

The Mandela Discount Shop, situated at a remote truck parking area between Musina and the Beitbridge border post, has been accused of misleading consumers by incorrectly implying an association with the iconic leader.

The foundation first discovered the shop, which sells household goods and foodstuff, in March 2019.

Subsequent investigations revealed that many individuals trading on the property were unaware of the establishment, which had undergone several name changes over the years, from Gateway Truck Park to Bell Park and finally to its current moniker.

The NMF contends that the very use of “Mandela” in the shop's name is deceptive and unfairly capitalises on the esteemed legacy of Nelson Mandela.

According to the foundation, the shop’s name not only misleads consumers but also poses a threat to the Mandela legacy. It stated that the lack of oversight regarding the quality of goods sold at the shop could unjustifiably damage the reputation associated with Mandela's name.

The foundation expressed concern that the store was taking advantage of public goodwill tied to the Mandela brand, emphasising that the harm inflicted on the heritage of the icon outweighs any potential prejudice experienced by the shop itself, whose operation appears opportunistic at best.

The Companies and Intellectual Property Commission (CIPC) had been closely monitoring the shop after it failed to submit annual company returns from 2022 to 2023.

The NMF had hoped this would lead to the shop's deregistration, thereby eliminating the need for a formal dispute over its use of the name.

However, after receiving a demand letter, the Mandela Discount Shop filed the overdue returns in November 2023, signalling its intent to continue trading under the contentious name.

Responding to these developments, the NMF sought redress from the Companies Tribunal, an agency governed by the Department of Trade, Industry and Competition under the Companies Act. The tribunal was approached in a bid to compel the Mandela Discount Shop to change its name to one that does not include the famous “Mandela” trademark or any name that could easily confuse consumers.

Despite being served with correspondence and demand letters, the shop did not oppose the NMF's application. An investigative report confirmed that the shop remains operational, yet it failed to respond to the foundation’s attempts at communication.

Tribunal member Minah Tong-Mongalo issued a ruling in favour of the NMF, emphasising the prominent and revered status of Mandela’s name. “Ordinary people will overwhelmingly recall ‘Mandela’ not the descriptive additions such as ‘Border’ or ‘Discount Shop’,” she stated.

The tribunal concluded that the potential for consumer confusion was significant, noting that the Mandela legacy is intrinsically linked to public interest, charity, and dignity.

Last month, the tribunal ordered the Mandela Discount Shop to change its name within three months and required the shop to file an amendment with the CIPC confirming the update. Failure to comply could result in the CIPC renaming the establishment automatically to its company registration number.

Additionally, the tribunal has mandated that costs incurred by the NMF be covered, due to the steps taken by the foundation to avoid litigation through numerous investigations and requests for voluntary compliance prior to this legal action.

SUNDAY TRIBUNE