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Tesco loses fight to sell cheap Levis Julia Finch Thursday August 1, 2002 The Guardian Supermarket group Tesco has finally conceded defeat in its battle to sell cheap Levi jeans after a four-year battle ended in the high court ruling in favour ADVERTISEMENT of the US Levi Strauss group. The court case centred on whether Tesco was legally entitled to source cheap jeans outside the EU or whether the brand owner had the right to veto such purchases. Yesterday the high court backed a decision made by the European court last November which ordered retailers to seek permission from the brand owner before sourcing goods outside the EU. In the high court Tesco - along with privately owned discount warehouse group Costco - argued that Levi was abusing basic international human rights to prevent cheap jeans being imported to the UK. The chain claimed that Levi's attempts to stop it selling jeans sourced in the US breached the retailers' right to freedom of expression, freedom to own and deal in property and the right not to be discriminated against. If Tesco had won the case there could have been a flood of cheap designer goods into the UK, sourced from non-EU countries. However, Mr Justice Pumphrey described the allegations of human rights abuse as "devoid of any substance", although he granted the two retailers leave to appeal. Tesco director John Gildersleeve said: "It seems we have run out of legal road," but vowed to continue selling cheap jeans from cheaper EU countries. The chain has stocks of Levi 501s sourced in Europe which retail at £32.99, while the recommended retail price is about £50. He said Tesco would campaign for a change in the law. "Our customers think this is a daft law, so it is time...to get it changed to give consumers the lower prices they want." Rival Asda described the judgment as a "cake and eat it ruling" which allowed brand owners to pour cheap goods on to the so-called grey market but halt sales if their official distributors complained about cheap competition. Levi Strauss's European boss Joe Middleton said the judgment allowed the company to continue to offer customers quality and value. A spokesman for the Consumers' Association said that "the real loser is the consumer". Levi's wins fight to halt Tesco price cuts Andrew Osborn in Brussels Wednesday November 21, 2001 The Guardian British supermarkets lost their long running battle yesterday to sell cut price designer goods bought cheaply outside the EU after a European court ruling that Tesco's policy of selling Levi Strauss jeans purchased inexpensively in the US was illegal. In a judgment that will have implications for a range of goods, from designer jeans to perfumes, the court ruled that Tesco was not allowed to sell Levi jeans without the manufacturer's consent which has not and is unlikely ever to be given. The ruling leaves Britain's supermarkets open to legal action from trademark owners who have watched with increasing anger as their "exclusive" products have been snapped up cheaply through non-official channels outside the EU and marketed in the UK alongside cans of baked beans. The court's verdict, which allows no appeal and will serve as a model judgment for British courts, surprised observers since a preliminary opinion this year had appeared to side with Tesco. Tesco put a brave face on the ruling last night but admitted it was disappointed. Its director, John Gildersleeve, said: "Customers will be dismayed that once again the European court has failed to loosen the shackles and allow us to bring in the products they want." "To pay 100% price for 100% property and yet have no right to sell on is an astonishing commercial decision. No rational trademark system should allow this to happen." A jubilant Levi Strauss said its victory would help other brand owners "who invest heavily in research and development". "We are extremely pleased that the court has established without a shadow of doubt that Tesco has been acting illegally by importing our jeans for sale in Europe without our consent," said Joe Middleton, Levi's European president. Tesco, which adheres to the "pile it high, sell it cheap" policy of founder, Sir Jack Cohen, sells button-fly 501 jeans for £27.99 in its stores as against £50 in Levi authorised shops.
Approximate Word count = 2855
Approximate Pages = 11.4
(250 words per page double spaced)
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