Big C takes on Tesco Lotus in discounts court battle

Big C takes on Tesco Lotus in discounts court battle

Big C Supercenter Plc and Cencar Ltd yesterday filed a civil lawsuit against Ek-Chai Distribution System Co, the operator of the Tesco Lotus superstore chain, accusing the latter of unfair trade practices and demanding 415 million baht in damages.

"We decided to take the case before the civil court because we want to protect our rights," said Kudatara Nagaviroj, the corporate image director of Big C.
"Ek-Chai misused our logos and our trade and marketing mechanism for its own benefit."
Ek-Chai is accused of violating the Trade Competition Act and interfering with the business of others.
The business dispute started in February when Big C and Carrefour jointly conducted a major advertising and promotion campaign by allowing their customers to use cash coupons for discounts when they purchased products at either store in future visits.
The joint promotion was launched to celebrate the success of Big C's parent company, Groupe Casino, in acquiring 42 Carrefour stores in Thailand.
In competing for customers, Tesco Lotus invited holders of Big C and Carrefour cash coupons to use the vouchers at its stores, offering them higher redemption values.
Around mid-year, Tesco Lotus launched a campaign to encourage Carrefour's I-Wish cardholders to send it text messages and get gift vouchers in return.
The British-based retail chain also sent its staff to distribute promotional leaflets near Big C stores.
If the marketing campaigns were allowed to continue, they would cause serious damage to the reputation and business operations of Big C, Mr Kudatara said.
More importantly, he said, the campaign would harm and adversely affect the marketing standards in all business sectors, not only in the retail business.
"We truly hope this lawsuit will be a case study for all companies in setting their marketing standard and proper business conduct, and to respect their business peers," he added.
Tesco Lotus said in its statement that its sales promotions and campaigns were conducted transparently and fairly. All of its operations are in full compliance with all laws and government regulations.
"At Tesco Lotus, our value is that no one tries harder for customers," it said.
"We are confident that everything we do is carried out fairly and we do it to provide the greatest benefit to our customers and Thai consumers."
Big C has also filed complaints against Tesco Lotus with the Trade Competition Committee chaired by the commerce minister, alleging unfair trade practices.
Yanyong Phuangrach, permanent secretary of Commerce, said Big C alleges Tesco used its logo and marketing mechanism to establish its own customer base and the issue was now under the consideration of retail business experts.
Both sides have already provided information and the issue will be later forwarded to the committee, he said.
However, he viewed that the result of the case will not have a negative impact on consumers as the dispute is about marketing strategies of the two hypermarket chains.