Tesco Lotus ordered to pay Bt4bn damage compensation to Big C group

[webfact]

COMPETITION
Tesco Lotus ordered to pay Bt4bn damage compensation to Big C group
The Nation



BANGKOK: -- The Civil Court today ruled that Tesco Lotus is guilty in violation of the Article 421 of the Civil Code, following two major marketing campaigns years ago.

The court also awarded the damage compensation of Bt2.46 billion to Big C Supercentre and Bt1.5 billion to Cencar.

The case was a victory to Big C Supercentre and Cencar, its shareholder, which brought the case to the court on August 15, 2011. In the civil lawsuit against Ek-Chai Distribution System, which operates Tesco Lotus, both companies said that Tesco Lotus committed unfair trade practices and interference with business of others by openly conducting two major marketing campaigns on separate occasions that were based on unauthorised uses of logos, marketing tools and marketing mechanisms belonging to Big C without proper consent and authorisation with the aim to generate sales and increase Tesco's customer database at Big C's expenses.

"Big C respects the Court's verdict and hopes that this case shall be a case study on the standard and proper conduct of marketing that all companies should adhere to for the long-term benefits of the consumers," Big C said in a statement.

It also hopes that the outcome of this case will lead to the enactment of Trade Competition Act for the first time since 1999 - which would reflect the important role of Trade Competition Act in the promotion of competition through business conducts that are fair, creative, positive and respectful to business peers in the future. It hopes that the Trade Competition Committee will take the Civil Court’s ruling on this case into consideration when it deliberates the case.


-- The Nation 2013-06-25

[CrisRMenumate]

You only have to watch a few minutes of Thai TV to see that "truth" is on holiday when it comes to most advertising campaigns targeting local consumers. Business As Usual in LOS

[Thai at Heart]

This story needs some details.

[Sydebolle]

Precedence set. Congratulations to Tesco-Lotus; not only can this fine be tax-active in the books but they can go and take all those clowns to the cleaners now which all operate with fake/wrong promises on pricing, quality, ingredients, life shelf - the works!
TESsie COhen (the founder's wife's name) must be proud of the local goings. Who's next!

[soi41]

Precedence set. Congratulations to Tesco-Lotus; not only can this fine be tax-active in the books but they can go and take all those clowns to the cleaners now which all operate with fake/wrong promises on pricing, quality, ingredients, life shelf - the works!

TESsie COhen (the founder's wife's name) must be proud of the local goings. Who's next!

I get so tired of posters posting about something, where they clearly have no knowledge!

The name TESCO originates from T.E.Stockwell (a teatrader) and Jack COhen.

Sir Jacks wife was named Sarah.

[Thai at Heart]

Precedence set. Congratulations to Tesco-Lotus; not only can this fine be tax-active in the books but they can go and take all those clowns to the cleaners now which all operate with fake/wrong promises on pricing, quality, ingredients, life shelf - the works!

TESsie COhen (the founder's wife's name) must be proud of the local goings. Who's next!

Tesco lost, or did I misread?

[OzMick]

"unauthorised uses of logos, marketing tools and marketing mechanisms belonging to Big C"

What does this mean? How do marketing tools and marketing mechanisms belong to one company?

[Thai at Heart]

"unauthorised uses of logos, marketing tools and marketing mechanisms belonging to Big C"

What does this mean? How do marketing tools and marketing mechanisms belong to one company?

God knows. Needs details. I don't expect Tesco to take this lying down though.

Maybe they stole a marketing director or something.

[kimamey]

"unauthorised uses of logos, marketing tools and marketing mechanisms belonging to Big C"

What does this mean? How do marketing tools and marketing mechanisms belong to one company?

God knows. Needs details. I don't expect Tesco to take this lying down though.

Maybe they stole a marketing director or something.

I don't know the facts of the case and more detail would be good.

I suspect that as it mentions logos 'marketing tools and marketing mechanisms' refer not to generic systems but more likely copyrighted names for those systems. In the UK as elsewhere it's common to use loyalty cards where you collect points when you spend money and in Tesco's case it's called Tesco Clubcard as far as I remember. In that case I would guess it's acceptable to refer to loyalty cards or schemes but not Tesco Clubcard without permission Of course it's also possible that Big C has some mechanism or tools that are specific to them and so copyrighted.

This is just my guess and maybe someone with a retail background will help us out.

[Boater]

Tesco,Morrisons, Asda ect are always doing this in the UK, every time i shop at tesco i get a little receipt saying how much i saved via shopping at the other store, if i havent saved they give me it back as a refund ... very competitive business are supermarkets

[Robby nz]

So Tesco will appeal and that will take up another 2 or 3 years.

[SteeleJoe]

You only have to watch a few minutes of Thai TV to see that "truth" is on holiday when it comes to most advertising campaigns targeting local consumers....

Which is different from...where?

[lemoncake]

IF only small business operators could file law suits and win.

[lee b]

wow prices on the rise in tesco then haha

[borisloosebrain]

If it is a copyright breach in their use of marketing logos then ..wassup ? I though that that was accepted practice in Thailand.

[thaicbr]

"unauthorised uses of logos, marketing tools and marketing mechanisms belonging to Big C"

 

What does this mean? How do marketing tools and marketing mechanisms belong to one company?

It means that Tesco did a promotion that accepted every one of Big C's discount vouchers at Tesco stores. In tescos advertising they actually had copies of the big c adverts saying you could use them at tesco. I thought it was funny as hell. If I remember Big C actually did something similar to tesco the next year!

Sent from my GT-P1010 using Thaivisa Connect Thailand mobile app

[sms747]

We always find at least one item at big C higher at the till than on the shelf, can we su them? They used to give us the item free but we got so much stuff like that they now give us the money overcharged back. They normally blame the customers, why can't they accept responsibility, oh yes they are Thai!

[jbrain]

We always find at least one item at big C higher at the till than on the shelf, can we su them? They used to give us the item free but we got so much stuff like that they now give us the money overcharged back. They normally blame the customers, why can't they accept responsibility, oh yes they are Thai!

You should insist on getting the item for free, it is stated on the big board above their customer service desk, works for me all the time.

[jbrain]

If this ruling gets enforced, I have such a feeling the price of the chicken meat is gonna rise at Tesco.

[Thai at Heart]

If this ruling gets enforced, I have such a feeling the price of the chicken meat is gonna rise at Tesco.

Still haven't worked out what they are supposed to have actually done.

[Thai at Heart]

http://www.nationmultimedia.com/home/2011/08/16/business/Big-C-sues-Tesco-for-BT415-M-30162847.html

Seems they offered to redeem carrefour and big c vouchers. Interesting legal question.

The articles I see claim 400mn being sued for, not 4bn. But what's a few zeros.

Edited June 25, 2013 by Thai at Heart

[55Jay]

Something about Tesco accepting Carrefour coupons, and BigC took over Carrefour.

I googled "tesco lotus law suit" and found a Post article a few results down the page.

[Thai at Heart]

http://www.kenvarga.com/news/we-will-redeem-any-competitors-coupons/

Seems it's been going on in the USA forever. Isn't this how groupon based it's whole concept? Trading coupons?

[Thai at Heart]

The other paper has 4mn baht. The nation will get sued now if everyone dumps Tesco lotus shares.

[wolf5370]

The other paper has 4mn baht. The nation will get sued now if everyone dumps Tesco lotus shares.

Seems more likely that 4Bn - that would be a pretty sizeable lump of their annual profits - hard to justify that.

Anyway, it will go to appeal - and drag on for a decade or so; whilst counter suit are made.

[Boater]

http://www.nationmultimedia.com/home/2011/08/16/business/Big-C-sues-Tesco-for-BT415-M-30162847.html

Seems they offered to redeem carrefour and big c vouchers. Interesting legal question.

The articles I see claim 400mn being sued for, not 4bn. But what's a few zeros.

How is that illegal ?

Sent from my iPhone 6

using ThaiVisa app

[BrianCR]

Precedence set. Congratulations to Tesco-Lotus; not only can this fine be tax-active in the books but they can go and take all those clowns to the cleaners now which all operate with fake/wrong promises on pricing, quality, ingredients, life shelf - the works!

TESsie COhen (the founder's wife's name) must be proud of the local goings. Who's next!

I get so tired of posters posting about something, where they clearly have no knowledge!

The name TESCO originates from T.E.Stockwell (a teatrader) and Jack COhen.

Sir Jacks wife was named Sarah.

May I politely ask what you are drinking? I need some - and many, many years ago I held a senior position in the head office of the company and the first thing you are taught is where the name comes from and you are completely wrong!!! Her name was TESSA COHEN - TESCO Edited June 25, 2013 by BrianCR

[SteeleJoe]

Precedence set. Congratulations to Tesco-Lotus; not only can this fine be tax-active in the books but they can go and take all those clowns to the cleaners now which all operate with fake/wrong promises on pricing, quality, ingredients, life shelf - the works!

TESsie COhen (the founder's wife's name) must be proud of the local goings. Who's next!

I get so tired of posters posting about something, where they clearly have no knowledge!

The name TESCO originates from T.E.Stockwell (a teatrader) and Jack COhen.

Sir Jacks wife was named Sarah.

May I politely ask what you are drinking? I need some - and many, many years ago I held a senior position in the head office of the company and the first thing you are taught is where the name comes from and you are completely wrong!!! Her name was TESSA COHEN - TESCO

"...Jack married Sarah Fox, or "Cissie", in 1924; so great was her support of her husband's ambition that the money they received in wedding presents was invested in a wholesale venture.

The creation of the Tesco name was in fact more accident than design. Tea supplied in chests by Mr T. E. Stockwell was sold in packets by Jack, branded with the name Tesco – a hasty conjunction of Mr Stockwell's initials with the beginning of Jack's surname."

http://www.english-heritage.org.uk/about/news/blue-plaque-tesco/

.

[Beetlejuice]

Precedence set. Congratulations to Tesco-Lotus; not only can this fine be tax-active in the books but they can go and take all those clowns to the cleaners now which all operate with fake/wrong promises on pricing, quality, ingredients, life shelf - the works!

TESsie COhen (the founder's wife's name) must be proud of the local goings. Who's next!

I get so tired of posters posting about something, where they clearly have no knowledge!

The name TESCO originates from T.E.Stockwell (a teatrader) and Jack COhen.

Sir Jacks wife was named Sarah.

Correct.

Jack Cohen was the founder of Tesco.

I believe that Tesco recently lost billions of dollars when their stores flopped in the USA.

At this rate, the store chain will soon be bankrupt and out of business.

[baboon]

My local Big C is notorious for their lack of variety and expensive prices. Makro and Tesco are by far a better shopping experience round here..