Tesco Lotus To Sue Thai Critics For One Billion Baht

[AFKAFSinLOS]

A couple of key points:

Tesco will not have a monopoly (mono => one) with the likes of Big C, Carrefour etc around. At worst it could result in an Oligopoly.

People quote the UK: Tesco, Sainsbury's, Asda, Morrison's, etc. From time to time these companies have price wars, and additionally are always striving to be best value for money. Otherwise people go to one of the alternatives. One spin-off is the advent of "own brand" products which are comparable but cheaper.

The comparison of Thailand with the UK differs in some key respects:

- Mom and pop shops: butchers, bakers etc in the UK used to do reasonably well and make a good standard of living. The Uk started from more even welath distribution.

- In Thailand, mum and pop shops generally live on the poverty line, particularly up country. The wealth distribution starts from being unequal. In reality there are a few Thai individuals/companies/govt organisations that really do have monopolies. And we are talking monopolies not oligopolies or any form of choice. Tesco are at least offering alternatives, and giving some people at least a chance to get off the poverty line. It will also force much needed economic change, and redistribution of wealth. Mom and pop shops will be able to buy in bulk from Tesco cheaper than existing suppliers. Tesco is by no means in every village in Thailand...

Take a couple of examples:

- Rice. Who makes all the money there? Certainly not the farmers...In other industries:

- Mobile phone networks: 2 main choices. For mainy years just one

- Cable TV: 1 main "choice".

These are real Thai monopolies

At worst Tesco are offering realistic choices to ultimately Thai owned monopolies.

Bottom line is it's probably more a Thai elitist issue than anything. Plus those defending vested Thai monopolies.

The people of Thailand will ultimately be better off. I'd agree for the Uk it is debateable. UK went from a functional fair old system, where people did quite well, and reasonably fair wealth distribution, to a new different one. For Thailand the existing system is hardly functional, not fair, many people do badly out of it, and struggle to keep heads above water, while a few key people do extremely well.

[plachon]

Every little hurts...................bad publicity that is...............and in the age of globalisation, what Tesco does to silence critics and suppress rights to free speech in one country, will come back to haunt it at home...........from today's Guardian...........

http://www.guardian.co.uk/business/2008/ap...co.supermarkets

and if you are really interested in the truth behind your friendly neighbourhood supermarket, then check out this website......

http://www.tescopoly.org/

Support local businesses, boycott Tesco!

[MeaMaximaCulpa]

Active objection is not a futile gesture. When the intention to open a branch of Tesco-Locust in Kamphaeng Phet was announced the campaign launched by local traders was successful in stopping it even being built.

Power to the People!

Local traders good, choice bad. Local traders good, choice bad. Local traders good, choice bad.

This sounds like from The Simpsons or Animal Farm by Goerge Orwell.

Forum rules stops me from adding the expletives I do feel is required to add.

Communism rule! It will move us all ahead to a prosperous future, where you can go to by poor quality, out of date goods (if you can find them at all) in dirty little stores, often at higher prices.

Why not let people choose by using their Baht?

Edit: Forgot to mention that niche shops can happily co-exist next to supermarkets, IF THEY HAVE SOME ADDED VALUE. This happens in my home town in Scandinavia, where for instance the local fish minger is doing very well indeed in competition with several powerful supermarket chains. Same is for several other types of shops in the city center. Provide what the customer wants, and you can compete. Is this so difficult to understand?

[mrtoad]

I think as several posters have pointed out, people go to the stores that offer a clean environment, marked prices, in date goods and wide choice. Until local traders start doing that then as far as I'm concerned I know where I will shop. To the smaller traders it's either shape up or shut up, if they had been providing it in the first placed then companies like 7-11, Tesco, Carefour etc would not be targetting the small convenience market with such effect.

[MeaMaximaCulpa]

I would like to add, so I am not taken as an advocate for Tesco/Lotus (or Big C or C4). I do not like their stores, I prefer stores with better quality stuff. But I want to fight for their right to do business, as long as they follow the rules and laws.

And if you allow me to ramble on a bit, to show I am not all a corrupted capitalist, but have a soft side as well.

During my young days at our beachside summerhouse (40+ years ago), we used to have regular visits of the following, at least once per week:

-Butchers/meat truck

-Vegetable truck

-Prawn fishermen on their way back to harbour.

-Other local fishermen (selling fish like plaice, sole and mackerel)

-A boat selling newspapers, ice cream and fresh bread on weekend mornings

-There were probably some others, also neighbours coming by with mushrooms and berries they had picked and wanted to share.

Do I miss these? Of course I do, but barring the supermrket by force is not going to bring them back. A few still excist, and I do think a few more will emerge in the near future. BECAUSE PEOPLE WANT THEM.

[roamer]

Tesco LOTUS is a Thai Company

51% Thai owned...

You can be assured that the decision to proceed with this case was greenlighted from London. If it wasn't, Tescos overseas subsidiaries are out of control, which is an even more valid reason to boycott Tescos until they get their house in order.

I fear I'm responsible for any misunderstanding.

As a non-Brit and being totally unfamiliar with Tesco or Tesco Lotus until arriving here, I thought they were all interchangable.

To clarify, as the actual OP report clearly states, it is Tesco that is suing the Thai critics, and not Tesco Lotus.

I apologize for inadvertantly adding Lotus into the title when I wrote it....

(can a Mod please remove it)

Actually you were right the first time. A Tesco spokesmen questioned on BBC last night denied that the attempt to sue The Guardian in the UK as well as the libel actions in LOS was a co-ordinated effort from Tesco UK. He stated categorically that the libel actions in LOS were reached independently by the Thai Lotus group........yeah

Lets pay homage...

[plachon]

I think as several posters have pointed out, people go to the stores that offer a clean environment, marked prices, in date goods and wide choice. Until local traders start doing that then as far as I'm concerned I know where I will shop. To the smaller traders it's either shape up or shut up, if they had been providing it in the first placed then companies like 7-11, Tesco, Carefour etc would not be targetting the small convenience market with such effect.

That's your perogative where to shop, although I would point out that the vegetables in Thai open air markets are invariably fresher, cheaper and offer a wider choice that any supermarket I've seen in Thailand. It's called competition and it's healthy. Less competition, less choice. Use the fresh markets and small traders or lose them. End up with a sterile mall shopping culture like in US if you want. It's simple.

However, as I've pointed out before, this thread is not about the merits and demerits of Tesco or supermarkets per se. It is about the right to free speech and the role of a free media in a healthy and vibrant society to operate without fear of being served crippling law suits for the sake of a few critical sentences. If Tesco were to win these cases, every consumer in Thailand would suffer I can assure you, as no journalist would dare to take a large company to task and it would be a victory for the rich and powerful over the ordinary citizen's right to information. Same as Shincorp vs Supinya case. It's about the type of global society we want to live in.

[AFKAFSinLOS]

[..

However, as I've pointed out before, this thread is not about the merits and demerits of Tesco or supermarkets per se. It is about the right to free speech and the role of a free media in a healthy and vibrant society to operate without fear of being served crippling law suits for the sake of a few critical sentences. ...

I'm not quite sure why you repeat this. You might be interested in only one aspect. For me and obviously others, the articles had several themes, including:

1) The right to free speech: As far as I can see, no-one even including Tesco seems to be disagreeing with that right. What Tesco are disagreeing with and contesting is people using that free speech to spread mistruths and misinformation which negatively impact reputations.

They are not pursuing anything that was said accurately and was factually correct. They are pursuing (albeit some might say heavy-handedly but still legally) statements that adversely affect their reputation and which were incorrect. That's their legal right to do so, and they are entitled to at least question whether the Thai critics comments were slander or libel. You and I might not like that, but that's Thai rules in Thai society.

One would be naive not to at least question whether the Thai critics did this deliberately or not, and what their motives were. It could be an honest mistake, but it would be naive to assume that automatically. You are questionning Tesco's motives. They are questionning the Thai critics, just in different ways.

2) The free speech exercised by the Thai critics was clearly about the merits and demerits of Tesco and its (adverse in their view) impact on Thai society.

Siratranont said: 'The aggressive policy of expanding business in Thailand, not only in the big cities but also in the districts and sub-districts, is a contentious issue. The large-scale expansion of the big retailers must be exercised with great care - not too aggressively and too rapidly - to reduce the potential tension, which could lead to serious conflict. There is also the need for the small retail traders to adjust to changes. Tesco Lotus must take all of this into account.'

Hence there is a sub-theme raised in the article.

Seems natural to meet that people reply to both (and more) aspects of the article. Also makes the thread a bit more interesting and gives it some context...

[sriracha john]

EDITORIAL

Seeking justice or intimidation?

Media organisations are up in arms against what they view to be intimidation of press freedom, in light of the multi-national discount store chain Tesco Lotus' staggering 1.2 billion baht court action. Through its Thailand representative, Ek-chai Distribution, Tesco Lotus has filed separate defamation lawsuits against Jit Siratranont, vice secretary-general of the Thai Chamber of Commerce, Krungthep Turakij guest columnist Kamol Kamoltrakul, and Nongnart Harnvilai, Krungthep Turakij's marketing news editor, demanding altogether 1.2 billion baht for the damage allegedly caused to its reputation and business by their published articles. Tesco Lotus' 1.2 billion baht lawsuits provide a grim reminder of the tactic employed by politicians who use criminal defamation charges and multi-million-baht civil defamation lawsuits to intimidate and silence media, the press in particular, which are critical of their conduct or are deemed unfriendly to them. A case in point is the 400-million-baht defamation lawsuit lodged against Thai Post newspaper and media reform campaigner Supinya Klangnarong by Shin Corp, which was owned by then PM Thaksin Shinawatra, over her published remark that Shin Corp had benefited from the Thaksin government's policies. In the Supinya case, it turned out that in the eyes of the public it was Shin Corp and Thaksin who came under scrutiny. The criminal court subsequently dismissed the defamation suit, and Shin Corp, whose ownership had changed hands to Singapore's Temasek Holdings, then withdrew its civil suit for damages. Tesco Lotus' decision to sue members of the media and others for their criticism - which has been deemed fair and in compliance with free expression as guaranteed by the Constitution - seems ill-advised and will unnecessarily put the giant store chain in a negative light. Certainly, Tesco Lotus is fully entitled to make its case heard in court to protect its name, if it honestly thinks its rights have been violated. And while there are no legal limits to the amount of compensation one may demand, the 1.2 billion baht it seeks in this matter is outrageously unrealistic. As such, the company has unwittingly put itself in the same league as those politicians who are intolerant of criticism and who do not hesitate to resort to the courts to silence the media.

Continued here:

http://www.bangkokpost.net/News/24Apr2008_news18.php

[AFKAFSinLOS]

The interesting part about the new article on 24 April, is that it effectively has nothing new to say, compared to the one of a month or so back... Again questionning real motives here... Interesting that Bangkok Post could also get its facts right..

[funfun]

Thai Tesco 'won't silence me'

By Becky Branford

BBC News

A Thai journalist being sued by Tesco has vowed to continue his campaign against the multinational retailing giant.

A shopper in a Tesco Lotus shop in Thailand

Tesco is a major player in the Thai retail market

Tesco's Thai subsidiary, Tesco Lotus, is seeking damages of 100m baht ($3.2m; £1.6m) from columnist and academic Kamol Kamoltrakul.

It says he was behind a "sustained and malicious campaign" which seriously defamed the store.

It is also suing Thai politician Jit Siratranot and another journalist, Nongnart Harnwilai, fellow critics of the company's rapid expansion in Thailand.

But in an interview with the BBC, Mr Kamol claimed the company's action aimed "to silence me" and other critics.

Tesco has been operating in Thailand for a decade. In addition to the 370 stores it already operates, it planned to open a further 162 in 2007-8, according to its annual review published on its website.

Error

Mr Kamol says the suit filed against him concerns an article he penned for Bangkokbiznews on 29 October, in which he claimed superstores were driving out local so-called "Mom-and-Pop" stores and threatened to ruin the fortunes of millions of Thais.

Kamol Kamoltrakul, a Thai journalist being sued by supermarket giant Tesco

Tesco know I don't have that kind of money, so why do they do it? The only thing I can think is that they want to silence me

Kamol Kamoltrakul

In the same article, Mr Kamol alleged Tesco was guilty of so-called "creative accounting" - the practice of creating complex accounting structures which permit the lowest possible level of tax to be paid.

He also claimed that Tesco's Thailand operation provided the company with 37% of its global income.

Mr Kamol now admits he was mistaken in the last allegation, acknowledging that the true figure is closer to 3.7%.

But he says Tesco is exploiting his error in order to "scare other journalists".

"I was shocked that I was sued for this amount of money," Mr Kamol - a neat, bespectacled, softly-spoken man in his late 50s - told the BBC News website.

"It's nonsense. Tesco know I don't have that kind of money, so why do they do it? The only thing I can think is that they want to silence me."

Mr Kamol says he is worried Tesco could win - and says that if they do, under Thai law he could lose his home.

http://news.bbc.co.uk/2/hi/asia-pacific/7367127.stm

[endure]

Tesco's Thai subsidiary, Tesco Lotus, is seeking damages of 100m baht ($3.2m; £1.6m) from columnist and academic Kamol Kamoltrakul.

Is this the same Kamol who used to post on soc.culture.thai?

[sriracha john]

Rights seminar warns Tesco Lotus over libel suits

Tesco Lotus came under fire yesterday as the National Human Rights Commission and the Foundation for Consumers held a seminar on the hypermarket chain's negative impact on communities and the mass media's freedom of expression.

Narong Chokewattana, a member of the Board of Trade, told the seminar that it was unwise for the UK-based firm to have recently filed libel lawsuits demanding a combined Bt1.2 billion against its critics, including two Thai newspaper columnists.

Nongnart Harnvilai, a senior editor of Thai-language business daily Krungthep Thurakij, is facing a Bt100-million suit over a column she wrote, questioning whether Tesco Lotus "loved" Thailand because it was planning to expand with 130 new outlets without caring about whether mom-and-pop stores could compete against the chain.

Two more libel suits were lodged against Kamol Kamoltrakul, another Krungthep Thurakij columnist, and Jit Siratranont, a former MP and now deputy secretary-general of the Thai Chamber of Commerce, seeking damages of Bt100 million and Bt1 billion, respectively.

Narong believes that Tesco Lotus's image will suffer in the end because of its legal actions against critics.

Saree Ongsomwang of the Foundation for Consumers said communities had the right to voice criticism against retail giants as mom-and-pop stores have suffered from their unrelenting expansion.

Suthichai Yoon, editor in chief of Nation Multimedia Group, told the seminar that Tesco Lotus's recent libel suits could be seen as a "classic" case study on multinational firms' ethical conduct as far as public sentiment and social responsibility are concerned.

Suthichai said the public and mass media had the right to express their opinion in good faith. As a result, these critics, wanting to protect a minority in society (the traditional trade), should not face such intimidation.

The Campaign Committee for Human Rights also issued a strongly worded statement criticising Tesco Lotus and urging the public to boycott its business.

- The Nation (today)

[Thai at Heart]

Rights seminar warns Tesco Lotus over libel suits

Tesco Lotus came under fire yesterday as the National Human Rights Commission and the Foundation for Consumers held a seminar on the hypermarket chain's negative impact on communities and the mass media's freedom of expression.

Narong Chokewattana, a member of the Board of Trade, told the seminar that it was unwise for the UK-based firm to have recently filed libel lawsuits demanding a combined Bt1.2 billion against its critics, including two Thai newspaper columnists.

Nongnart Harnvilai, a senior editor of Thai-language business daily Krungthep Thurakij, is facing a Bt100-million suit over a column she wrote, questioning whether Tesco Lotus "loved" Thailand because it was planning to expand with 130 new outlets without caring about whether mom-and-pop stores could compete against the chain.

Two more libel suits were lodged against Kamol Kamoltrakul, another Krungthep Thurakij columnist, and Jit Siratranont, a former MP and now deputy secretary-general of the Thai Chamber of Commerce, seeking damages of Bt100 million and Bt1 billion, respectively.

Narong believes that Tesco Lotus's image will suffer in the end because of its legal actions against critics.

Saree Ongsomwang of the Foundation for Consumers said communities had the right to voice criticism against retail giants as mom-and-pop stores have suffered from their unrelenting expansion.

Suthichai Yoon, editor in chief of Nation Multimedia Group, told the seminar that Tesco Lotus's recent libel suits could be seen as a "classic" case study on multinational firms' ethical conduct as far as public sentiment and social responsibility are concerned.

Suthichai said the public and mass media had the right to express their opinion in good faith. As a result, these critics, wanting to protect a minority in society (the traditional trade), should not face such intimidation.

The Campaign Committee for Human Rights also issued a strongly worded statement criticising Tesco Lotus and urging the public to boycott its business.

- The Nation (today)

questioning whether Tesco Lotus "loved" Thailand because it was planning to expand with 130 new outlets without caring about whether mom-and-pop stores could compete against the chain"

In light of the way that this word can be construed, I would reckon they have committed libel. It is the law that takes libel to be crimminal, not the case per se that is so stupid. As long as the libel law is crimminal, freedom of the press is severely compromised in this country. Add in keeping face and it is not a good law at all. Remember the cracks in the runway. People lost their jobs over that because of the threat of this stupid law which would have ruined the newspaper.

Now they have a tricky problem. Issue an apology and lose face, or take it court and probably lose and face absolute ruin. If nothing else, it will probably get the law changed if these blokes are found guilty of cimminal libel.

Judge should probably find them guilty, fine them one baht and then get them to be pardoned of their alleged crimes.

[sriracha john]

Tesco faces commerce backlash

Retail giant asked to drop lawsuits

The chambers of commerce in the Northeast are opposed to multi-national discount store chain Tesco Lotus' court action against its critics and will stop doing business with the company unless it drops the suits. The move came after the UK-based retailer filed separate defamation lawsuits against three Thai critics through its Thailand representative, Ek-chai Distribution Company, for comments which the company claimed damaged its reputation and business. Somchai Kraikrutree, a member of the Thai Chamber of Commerce, who heads a committee on economic development in the Northeast, said the chambers of commerce in 19 northeastern provinces recently met in Buri Ram and resolved to push for the charges to be withdrawn. They will hand a letter opposing the court action to the British embassy and the UN office in Thailand. They have also announced they will stop engaging in any activities with the company unless it withdraws the suits.

Continued here:

http://www.bangkokpost.com/News/15Jun2008_news03.php

[Jimjim1968]

I am still peeved at Tesco's for;

1. Not stocking Moccano ground coffee anymore. I don't believe it!

2. Twinnings Earl Gray tea up from 120 to 170B.

3. My special German museli up from 154 to 180B

4. My Pesto sauce up from 145 to 160B

Arse!!!

I haven't been there in ages.

Top in Central is far more transquil and the scenery is nicer.

Tesco's destroyed my town in UK too after fight ing the LA for 10 years to get a f*** off store put in.

I've changed my diet too and eat cheaper and more varied food.

[cmsally]

Another Tescos incident here

Chef faces chicken bill

Can't quite figure out how he gets the bill. Documents were submitted late, but they sent them to shareholders anyway and then they gave him the bill. Doesn't quite make sense, surely they would tell him it's too late and will cost you xxxx if we send them out. I don't know, confusing.

All these incidents are not good publicity seems more like just throwing their weight around.

[sriracha john]

Firms back Tesco opponents

Northern businesses draw up six-point resolution against giant retailer

Northern businessmen threw their weight behind the Thai Chamber of Commerce to contest a lawsuit brought by multi-national retail store chain Tesco Lotus seeking one-billion-baht compensation. The resolution was made yesterday in a joint meeting of the Chamber's Committee for Northern Economic Quadrangle held in Phayao yesterday. Committee Chairman Pattana Sittisombat said the joint meeting had reached its conclusion that the northern businessmen would give full support to Jit Siratranont, the Vice Secretary-General of the Thai Chamber of Commerce, to defend himself in court. The six-point resolution approved in the meeting ranged from the boycott against goods sold at Tesco Lotus hypermarkets to a push for the charges to be withdrawn. The legal fight to the finish and calls for one billion baht in compensation were included. In November last year, the UK-based retailer filed separate defamation lawsuits against three Thai critics through

Continued here:

http://www.bangkokpost.net/270708_News/27Jul2008_news006.php

[plachon]

Firms back Tesco opponents

Northern businesses draw up six-point resolution against giant retailer

Northern businessmen threw their weight behind the Thai Chamber of Commerce to contest a lawsuit brought by multi-national retail store chain Tesco Lotus seeking one-billion-baht compensation. The resolution was made yesterday in a joint meeting of the Chamber's Committee for Northern Economic Quadrangle held in Phayao yesterday. Committee Chairman Pattana Sittisombat said the joint meeting had reached its conclusion that the northern businessmen would give full support to Jit Siratranont, the Vice Secretary-General of the Thai Chamber of Commerce, to defend himself in court. The six-point resolution approved in the meeting ranged from the boycott against goods sold at Tesco Lotus hypermarkets to a push for the charges to be withdrawn. The legal fight to the finish and calls for one billion baht in compensation were included. In November last year, the UK-based retailer filed separate defamation lawsuits against three Thai critics through

Continued here:

http://www.bangkokpost.net/270708_News/27Jul2008_news006.php

I missed this update as I was away at the time, and have only just spotted it. Thanks SJ for staying on top of this story and keeping us updated.

Well done the TCC for supporting Jit and keeping up the opposition to Tesco's ridiculous defamation lawsuits. Just hope lots of people in Thailand learn the power of boycotts, as a result of this Tesco action, and how it is the ultimate consumer power tool to use against bad or irresponsible businesses. I estimate that I have now not spent at least 1,200 quid in Tescos, to the benefit of their competitors by avoiding them for my weekly shopping. I'll carry on boycotting them until they drop the lawsuits against the principle of "free speech".

[mommysboy]

I'm glad to see us Brits are showing a bit of bulldog spirit at last. Message clear, don't mess the best.

Kick his butt from here to Khon Kaen I say.

Who knows at this rate England might qualify for a soccer tournament again !!!

[sriracha john]

However, as I've pointed out before, this thread is not about the merits and demerits of Tesco or supermarkets per se. It is about the right to free speech and the role of a free media in a healthy and vibrant society to operate without fear of being served crippling law suits for the sake of a few critical sentences. If Tesco were to win these cases, every consumer in Thailand would suffer I can assure you, as no journalist would dare to take a large company to task and it would be a victory for the rich and powerful over the ordinary citizen's right to information. Same as Shincorp vs Supinya case. It's about the type of global society we want to live in.

UPDATE... the Court seems to have agreed with much of the above assessment...

Court drops Tesco Lotus´s lawsuit

BANGKOK, 17 June 2009 (NNT) - The Criminal Court has resolved to drop a lawsuit filed by Tesco Lotus against Deputy Secretary-General of the Thai Chamber of Commerce Jit Siratranont.

The court has dismissed a libel case filed by Ek-Chai Distribution System Company Limited, a wholesaler and retailer of Tesco Lotus, against Mr. Jit.

With Anucha Sermsitthikul acting as the plaintiff demanding 1 Billion Baht for the cost of damage, the lawsuit came as a consequence of Mr. Jit’s statement to the press in October of 2007, which was deemed detrimental to the company’s reputation and sale volume.

Mr. Jit claimed that the UK based superstore was multiplying in Thailand and would severely affect small retailers who were less competitive. He also alleged that the company’s profits from selling in Thailand were sent back to its mother company in the UK, causing deeper poverty in Thailand.

However, the Court resolved to drop the case after ruling that the criticism made by the defendant was mostly based upon personal opinion, to which all people are entitled to have.

-- NNT 2009-06-17

[sriracha john]

However, as I've pointed out before, this thread is not about the merits and demerits of Tesco or supermarkets per se. It is about the right to free speech and the role of a free media in a healthy and vibrant society to operate without fear of being served crippling law suits for the sake of a few critical sentences. If Tesco were to win these cases, every consumer in Thailand would suffer I can assure you, as no journalist would dare to take a large company to task and it would be a victory for the rich and powerful over the ordinary citizen's right to information. Same as Shincorp vs Supinya case. It's about the type of global society we want to live in.

UPDATE... the Court seems to have agreed with much of the above assessment...

Court drops Tesco Lotus´s lawsuit

BANGKOK, 17 June 2009 (NNT) - The Criminal Court has resolved to drop a lawsuit filed by Tesco Lotus against Deputy Secretary-General of the Thai Chamber of Commerce Jit Siratranont.

The court has dismissed a libel case filed by Ek-Chai Distribution System Company Limited, a wholesaler and retailer of Tesco Lotus, against Mr. Jit.

To put a face to the Billion Baht Plus lawsuit:

CEO of Ek-Chai Distribution System Company Ltd., Steve Hammett.

Mr. Jit claimed that the UK based superstore was multiplying in Thailand and would severely affect small retailers who were less competitive. He also alleged that the company’s profits from selling in Thailand were sent back to its mother company in

the UK, causing deeper poverty in Thailand.

to which Mr. Hammet's announced continued expansion plans yesterday:

If everything goes smoothly in the company's 2009 financial year starting on March 1, it will open five or six stores with the original superstore concept and another 40 supermarket outlets, said CEO Steve Hammett.

Tesco Lotus still growing

http://www.bangkokpost.com/business/retail...s-still-growing

[hazz]

Thailand's liable laws are probably one of the biggest contributers to the countries on going problems, liable sanctions are extreme and the definition of libel is very broad. The expenses scandal in the UK demonstrates the effect of secrecy on the behavior of those in power. Its a real shame that this case did not catalyze some change in the system.

I do have a gut feeling that if tesco's had been a 'real' thai company this case would still be going

[sriracha john]

Thai court dismisses Tesco libel case against former MP

Former MP Jit Siratranont had faced damages of up to £16.4 million over claims about Tesco's Thai expansion

A Thai court has dismissed a law suit filed by Tesco against a former MP, Jit Siratranont, for making comments that the supermarket giant's expansion was at the expense of small retailers.

Siratranont, now Deputy Secretary-General of the Thai Chamber of Commerce, was facing up to two years in jail and a £16.4 million libel damages claim after he made a speech at Bangkok's Kasetsart University saying Tesco's expansion was "aggressive". He also claimed that the profits from its Thai subsidiary, Tesco Lotus, were sent back to the UK, causing deeper poverty in Thailand.

The court dismissed the libel case filed by Ek-Chai Distribution System Company Limited, a wholesaler and retailer of Tesco Lotus, ruling that the criticism made by the defendant was "in good faith by way of fair comment on any person or thing subjected to public criticism". The court also dismissed the claim of one billion baht damages (about £16.4 million) by Tesco.

"We have made it clear throughout that all we want is to put the record straight and get an apology from Mr Jit," said a spokesman for Tesco. "We are considering our options."

Last year Tesco in Thailand launched three libel claims over separate allegations in relation to the company's expansion.

Nongnart Harnvilai, 45, a writer for Bangkokbiznews, wrote about Tesco Lotus's plans to open a further 130 outlets, saying Thai competitors were in for a difficult time. Tesco settled the action after seeking £1.9 million in libel damages, with an apology published in the paper for three consecutive days.

A third case was brought against Kamol Kamoltrakul, an academic and also a writer for Bangkokbiznews, who is facing a £1.6 million damages claim after being served with a libel writ. The Tesco spokesman said that the company was still working towards an out of court settlement over this case.

- The Guardian (UK) / 2009-06-22

[sriracha john]

More legal woes for Tesco-Lotus's operation in Thailand (and elsewhere)...

[sriracha john]

Excerpts from:

Tesco's treatment of staff overseas comes under fire from trade union

An international trade union group has lambasted Tesco's over its labour practices in some foreign countries, but the global retail giant hit back calling the attack "politically motivated".

The UNI Tesco Global Union Alliance yesterday unveiled the first of a series of research reports criticising the UK's biggest grocer's treatment of staff in Thailand, South Korea and the US, where it opened its fledgling convenience store chain Fresh & Easy in 2007.

The targeting of Tesco, which made more than £3 Billion pre-tax profits last year, by the network of unions comes ahead of its annual shareholders' meeting in Glasgow this week and the fact it now has operations in 14 countries.

Phil Bowyer, the deputy general secretary of the UNI Global Action, said: "We ask Tesco to take these reports seriously and take remedial action. We created a Tesco Global Union Alliance in response to a rapidly globalizing Tesco." More specifically, the union alleges that Tesco's operation in South Korea "forced" employees to work up to 20 hours a week of unpaid "voluntary" overtime and employed contract workers on lower pay, allowances and job security than permanent employees.

In Thailand, UNI Tesco Global Union Alliance claims the grocer required employees to work two shifts of 18 hours back-to-back. In the three countries, the research commissioned by Uni Global Union, which has 20 million workers globally, was conducted between December 2008 and June 2009.

- The Independent (UK) / 2009-07-01

http://www.independent.co.uk/news/business...on-1726219.html

[bojo]

Unfortunately law suits are two a penny nowadays in the West. It's a crying shame that one can't have total freedom of speech without fear of being sued.

I wonder if the MP would have blasted a 100% Thai owned firm.

I think the answer to that is obvious.

I look forward to the outcome and being a Brit (always a foreigner here in the Kingdom), I'm plugging for Tescos, while missing the old fashioned co-operative/local village stores of yesterday and fair pricing for farmers, I'm cheering the outspoken MP.

regards Bojo

[edgarfriendly]

The Empire Strikes Back?

they know what theyre doing, legal manipulation makes more time for profit and scares wannabe critics witless.

ask nestle.

ask mc'donalds

ask whoever u like , oil ppl, pharma ppl, its all the same game, take it ALLLLLLLLL...

ef

[David006]

Tesco slaps £16m writ on Thai critic

A former Thailand MP who is now the Secretary-General of the Thai Chamber of Commerce is facing a £16m legal claim from Tesco for speaking out against the retailer in his home country.

In a speech to 150 activists, Jit Siratranont, 56, described the retailer's expansion into Thailand under the name Tesco Lotus as aggressive, but admitted that he made an error saying that the firm made 37 per cent of its income from the Far Eastern nation. But his speech, he claims, urged conciliation between Tesco and small retailers to head off the prospect of riots over the store's rapid incursion into the country.

Siratranont said: 'The aggressive policy of expanding business in Thailand, not only in the big cities but also in the districts and sub-districts, is a contentious issue. The large-scale expansion of the big retailers must be exercised with great care - not too aggressively and too rapidly - to reduce the potential tension, which could lead to serious conflict. There is also the need for the small retail traders to adjust to changes. Tesco Lotus must take all of this into account.'

Separately, Kamol Kamoltrakul, an academic, is also facing a legal claim for £2m from Tesco Lotus for an article he wrote in Bangkokbiznews. Kamoltrakul also criticized Tesco's 'aggressive' expansion but admitted he repeated the mistake of saying Tesco Lotus contributes 37 per cent of Tesco revenue.

The action has sparked criticism from British campaigners accusing the giant supermarket of being heavy-handed. Claire Melamed, at poverty campaign group ActionAid, said: 'It is worrying that, rather then enter into a dialogue with campaigners over the effects of its expansion, it seems Tesco would sooner just slap them with a lawsuit.'

A Tesco spokesman said: 'We have issued proceedings against two individuals in connection with a sustained campaign of false and misleading statements about Tesco Lotus in Thailand. The suggestion that profits from Tesco Lotus are not reinvested in Thailand is blatantly untrue. The reality is that we have invested well over £1bn. While we believe people are entitled to their opinions, it is our belief that in these cases Tesco Lotus was seriously defamed. Both cases are being dealt with by the Thai courts and we await the outcome. We regret that we have had to resort to this action and hope the matter can be resolved by agreement.'

Tesco's expansion in Thailand has attracted significant opposition and has become a major political issue.

Problems in Thailand for the UK's top retailer come as analyst reports suggest Tesco's new California-based convenience stores are missing sales targets by as much as 70 per cent.

Separately, analysts at Goldman Sachs have downgraded the retail giant, urging investors to sell Tesco shares, which fell to 386.75p on Friday, their lowest level since October 2006.

- The Observer (UK)

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The total of 18 million British Pounds in the 2 lawsuits = 1,147,812,767 Thai Baht

Pretty obvious comment here--but, go to any of these big stores and the people are voting with their feet--every major supermarket is pretty packed and not just at weekends--I guess the Thais like them--maybe wrong.

Talking to a check out girl last week in Thung Sung Tesco Lotus ..she said most people in the store come to take advantage of the air conditioning....and don't buy much. The product mix in the store seems a little haywire for mostly Thai patrons..? Frozen 10 kilo Turkeys, French mustard and the like. Still no bread makers, dill pickles or frozen hamburger patties though.....

[verydumbubba]

Any dumbass can hire a lawyer and sue anyone - or threaten to - all publicity is good.

Bubba