“Our mission is to bring down prices in the UK,” explained Tesco director John Gildersleeve yesterday, but referring not to food items but rather the retailer’s position in the European court of justice over a whole host of designer items.
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The UK’s largest supermarket group is in court to ask for changes in the EU trademark law, after Levi Strauss bought a case to prevent Tesco buying its jeans outside the EU and selling them on in the UK at a discounted price. The practise, known as parallel imports, is currently banned in the EU, but Tesco is arguing that if the EU adopts international rules, branded products will be able to go on sale throughout the EU once they had been sold anywhere.
This means a better deal for consumers, but the designer companies are unwilling to relinquish hold on prices. Levi Strauss believes that because it has invested in the development of those goods, it therefore has a right to control the stores in which they are sold.
The case has attracted wider debate throughout the EU and Tesco’s stance has been backed by Sweden, who also believes that a change in the law would be beneficial.
“We’re fighting outrageous and outdated legal principles that are preventing our customers getting a better deal,” said Gildersleeve, resolved to continue the fight.
