Delhi High Court Restrains Fake Websites And Social Media Accounts Misusing 'Yousta' Trademark

Delhi High Court Restrains Fake Websites And Social Media Accounts Misusing 'Yousta' Trademark

The Delhi High Court has granted an ex-parte ad-interim injunction in favor of Reliance Retail Ltd., restraining several rogue websites and social media accounts from infringing the trademark of its ‘Yousta’ fashion brand.

Justice Mini Pushkarna was hearing a suit filed by Reliance Retail Ltd., alleging that the defendants had created fake social media profiles on platforms such as Facebook, LinkedIn, YouTube, and WhatsApp, as well as fraudulent email domains. The company claimed that these entities were using its trademarks, branding, corporate identity, and employee details to mislead individuals and engage in fraudulent activities.

Reliance Retail launched ‘Yousta’ in August 2023 as a youth-centric fashion brand and reported inaugural sales of approximately Rs. 114 crores. The company argued that unauthorized use of the ‘Yousta’ mark would harm its reputation and goodwill. It specifically identified a website, ‘youstafranchise.net,’ which, in collusion with other unknown perpetrators, was misusing the ‘Yousta’ and ‘Reliance Retail Limited’ trademarks to operate fraudulent schemes.

The suit detailed instances where victims were deceived through fake offer letters, fabricated agreements, and fraudulent franchise applications. One victim was induced to pay Rs. 2.65 lakh by an individual impersonating a Reliance employee, while another was defrauded of Rs. 1.73 lakh under the pretense of completing a Yousta franchise registration. The victims received fake receipts and forged documents, only to lose contact with the fraudsters after making payments. Reliance stated that it had received multiple similar complaints.

The Court found that Reliance had established a prima facie case for the grant of an injunction. It ruled that the balance of convenience favored the company and that failure to issue an injunction would result in irreparable harm.

Accordingly, the Court restrained the defendants, their owners, proprietors, partners, employees, and agents from using Reliance’s trademarks in any manner until the next hearing. It also directed the blocking and suspension of the defendants’ social media accounts, websites, and domain names, as well as the suspension of their bank accounts. Authorities were instructed to block access to the defendants’ mobile numbers and disclose their identity and KYC details.

Additionally, the Intelligence Fusion and Strategic Operations/Special Cell of the Delhi Police (Cyber Cell) was ordered to investigate and identify the individuals behind the fraudulent activities. The matter has been listed for its next hearing on May 19.