Snapdeal Private Limited has an online platform for merchants and traders and various other third party sellers to connect with customers throughout India. Various other companies also exist that provide similar platforms and services to these traders and merchants. One such company is Futuretimes Technologies Pvt. Ltd. (“Futuretimes”) which owns the website www.clubfactory.com. It is the Indian subsidiary of Jiayun Data Technology Company. Snapdeal claims that during the period of March 2020 www.clubfactory.com was running advertisements on Facebook bearing the tagline “Everything cheaper than Snapdeal”.
Snapdeal approached the Delhi High Court: SNAPDEAL PRIVATE LIMITED v. M/S FUTURETIMES TECHNOLOGIES PVT. LTD CS CS(COMM) 113/2020 stating that Futuretimes had falsely advertised its products with an aim to mislead and divert potential customers of Snapdeal. Snapdeal also stated that both the platforms are “market place” based models and therefore the prices on these platforms are independent variables and always available in the public domain. It contended, “In a market-place based model the product inventory as also the sellers are dynamic. Two marketplaces with multitude of sellers offering a multitude of products at any given point of time are therefore by definition incomparable.” Snapdeal claimed that Futuretimes was responsible for tarnishing the goodwill and reputation of Snapdeal in the public domain.
In its plaint, Snapdeal prayed that Futuretimes be required to be pay damages to the tune of Rs.2,00,01,000/- (approx. USD 26,900), in lieu of damage to the reputation and unauthorized use of the trademark ‘Snapdeal’ as well as for the loss in sales that occurred during the course of the advertisement. However, at a later date, the parties settled the dispute whereby Futuretimes agreed to all the conditions imposed by Snapdeal and in return Snapdeal agreed not to seek damages from it.