October 28, 2026

Analysis of Fine Imposed on Viral Café for Using Luxury Brand Logos in Afternoon Tea Decorations Involving Unfair Competition

March 30, 2021
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Introduction:When viral cafes printed luxury brand logos such as LV and CHANEL on desserts and beverages to attract countless visitors for photo opportunities, they also caught the attention of market regulators. Although the incident was ultimately not deemed a trademark infringement, it led to fines and confiscation of molds due to violations of the Anti-Unfair Competition Law. This article delves into the case process to help readers understand the boundaries of trademark use, as well as the legal and ethical considerations that should guide brand marketing.

Recently, a trend of "luxury afternoon tea" themed around high-end brand elements went viral on social media, prompting many internet-famous cafes to follow suit. One cafe in Ningbo, which decorated its coffee and desserts with logos of renowned luxury brands like LV and CHANEL, quickly became a hotspot for photos. However, this creative marketing approach drew the attention of market regulatory authorities for investigation.

According to media reports, after receiving a tip-off, the local market supervision bureau immediately launched an investigation and contacted the intellectual property departments of the relevant brands. The investigation revealed that the coffee and cakes sold by this cafe indeed featured the classic trademark designs of CHANEL and LV, without obtaining official authorization from the brand owners.

Notably, according to the internationally recognized Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks (commonly known as the Nice Classification), goods and services are divided into 45 categories. Coffee and pastries fall under Category 30, while neither CHANEL nor LV have registered their trademarks in this category. Furthermore, under Article 56 of the Trademark Law of the People's Republic of China, the protection scope of a registered trademark is limited to the approved trademark and the designated goods. Therefore, using these trademarks on non-covered Category 30 goods does not technically constitute trademark infringement.

Nevertheless, the enforcement authorities did not close the case at this point. They further pointed out that even if no trademark law was violated, the unauthorized use of internationally renowned brand logos could still adversely affect market order, easily cause consumer confusion, and even harm the brand image of genuine products. As a result, the cafe was ultimately deemed to be in suspected violation of the Anti-Unfair Competition Law of the People's Republic of China.

In the final ruling, the market supervision department imposed administrative penalties on the involved cafe, including fines and the lawful confiscation of molds used to print the brand logos. This action not only demonstrates the law’s emphasis on fair market competition but also serves as a reminder to businesses to fully assess legal risks when engaging in creative marketing.

Trademarks are not only the core of a company’s brand image but also the foundation of market differentiation and consumer trust. Brand owners typically register trademarks across various product categories to comprehensively protect their intellectual property. For example, CHANEL and LV have registrations in Categories 18, 25, and 3 for items such as clothing, leather goods, and perfumes, but if they have not registered in the food category, they cannot directly claim trademark rights there.

This case also reflects that many businesses today, in an effort to stand out on social media, resort to bold visual elements to attract photo opportunities. However, creative marketing must still be built on a foundation of legality and compliance. Blindly following trends or overly relying on "internet-famous elements" can not only lead to legal issues but may also tarnish a brand’s reputation.

For consumers, although these "internet-famous photo ops" desserts may seem novel and fun, they should also approach them rationally, avoiding the pursuit of aesthetically pleasing photos at the expense of product quality and the business’s operational integrity. For business operators, building brand value should start with product quality, service experience, and storytelling, rather than simply imitating the visual symbols of major brands.

In summary, although the "internet-famous afternoon tea" incident did not constitute a trademark infringement, it was penalized for crossing the line of unfair competition, serving as a wake-up call for the entire foodservice and marketing industry. While pursuing creativity and buzz, businesses should carefully evaluate the compliance of each step to move forward steadily in a competitive market.

The above content is compiled by CoffeeHunters, a coffee news website.

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