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Tesco loses cut-price designer goods verdict.

SUPERMARKET chain Tesco today lost its fight to sell cutprice designer goods in the UK.

Jeans manufacturer Levi Strauss said the European Court of Justice had ruled that goods sourced from outside the EU cannot be imported without the consent of the trademark owner.

If the decision had gone Tesco's way it could have heralded a flood of cut-price designer products bought on the so-called "grey market".

A Levi spokeswoman said:

"The court ruled that goods from outside the European economic area cannot be imported without the unequivocable consent of the trademark owner, and we think that is the right decision."

The long-running, and costly, dispute existed between Tesco and Levi over whether the jeans manufacturer had given the supermarket chain consent to stock its products.

Tesco believed it was right to sell jeans, such as the popular 501 brand, at discounted priced, while Levi said it had turned the company down as a stockist.

Levi has a policy of only selling its products through selected outlets - 17,000 across Europe.
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Copyright 2001 Gale, Cengage Learning. All rights reserved.

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Publication:South Wales Echo (Cardiff, Wales)
Geographic Code:4EUUK
Date:Nov 20, 2001
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