British retailers poised to flood their stores with cut-price designer goods are now reeling from a landmark decision in the European Court of Justice (ECJ) last week which, although disappointing for retailers, parallel traders and consumer groups, brings much needed clarity to the legislation relating to the sale of ‘grey goods’.
The outcome of the cases between Davidoff v A&G Imports Ltd and Levi Strauss & Co v Tesco Stores and Costco Wholesale UK Ltd has been hailed as a clear victory for designer brand owners who have been campaigning hard to stop supermarkets buying their goods on the ‘grey market’, at a fraction of the price normally charged in approved outlets, and passing on the cost savings to their customers.
