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Thursday, May 28, 1998 Published at 14:51 GMT 15:51 UK


Business: The Company File

Tesco accused of selling counterfeits

Tesco denies selling counterfeit Tommy Hilfiger clothes

Tommy Hilfiger has launched a legal case against Tesco for allegedly selling counterfeit versions of its high-priced clothes.

The fashion house has served a writ on the supermarket giant, and is planning to apply for an injunction to stop Tesco selling "unofficially sourced" Tommy Hilfiger goods.


[ image: Shoppers snapped up the bargains]
Shoppers snapped up the bargains
Tesco denies the claims and says the writ is a "move to muddy the waters over the real issue of selective distribution" which forces high prices on consumers.

Tommy Hilfiger said it sent undercover agents into Tesco stores at Easter, after the supermarket chain started selling its clothes at heavily discounted prices.

Fred Gehring, the chief executive of Tommy Hilfiger Europe, said: "Tommy Hilfiger is a globally respected brand and we owe it to all our consumers that whenever they buy our merchandise they can be sure it is genuine."

The writ, which includes a claim for damages, calls for an injunction to restrain Tesco from infringing several of its trademarks, and "passing off" clothing and accessories as having been made by Tommy Hilfiger.

It also calls for Tesco to destroy all remaining allegedly counterfeit Hilfiger-branded items in its possession.

And it says the supermarket chain must identify "all persons and corporations" which supplied it with the allegedly counterfeit goods, with full details of dates, quantities, prices and payments.

Tesco denial

Tesco maintains it has gone to "exhaustive lengths" to check the authenticity of its products.

Tesco director, John Gildersleeve, said: "We don't understand why Tommy Hilfiger has taken this action now. We have been selling their products for over seven weeks and have given them access to inspect the whole range.

"We absolutely believe the Tommy Hilfiger products on sale at Tesco are genuine."

The supermarket said it had been offered counterfeit Hilfiger products but had refused to take it and said independent experts had carried out tests on its stock.

Consumers' crusader

Tesco has been waging a high-profile battle against what it considers to be restrictive practices on the part of branded fashion manufacturers.

As it is not permitted to buy their goods through official channels, it has used the "grey" market, buying clothes through wholesalers.

It is into that market that the counterfeiters are alleged to have sold the goods, according to Hilfiger.

Yesterday, Tesco said it planned to sell official World Cup clothing, including England shirts, at prices far lower than they could be found through official outlets, a move which drew criticism from England kit maker Umbro.

Previous targets of the company's campaign have included Sony, Nike and Ralph Lauren.





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