THE COMMERCIAL YEAR 2015-16
that has come through the London courts in the last year. In May the tobacco lobby lost its High Court challenge against the new statute requiring cigarettes to be sold in plain, unbranded packaging. While tobacco firms have signalled their intention to appeal, the case has been held up as a landmark victory for public health over the interests of the tobacco industry. However, the plain packaging policy may have unintended consequences, with critics suggesting that the new rules will help criminals and have sweeping ramifications for intellectual property. Chris Snowdon, head of lifestyle economics at the Institute for Economic Affairs, said: “Plain packaging will inconvenience retailers and fuel Britain’s already vast black market. Moreover, now that the government has abolished trademarks for one industry, single-issue fanatics will be lining up to do the same to alcohol, food and soft drinks. It is a folly on every level.” Elsewhere, a US judge ruled that a court battle between battery makers Duracell and Energizer over pink rabbit mascots can effectively run and run (sorry). Back in 1992 the two companies agreed to divide rabbit rights between Europe and the United States, with Energizer enjoying the exclusive right to use a pink bunny in its US advertising and Duracell doing the same in Europe. However, Energizer is now claiming that its rights have been violated because US stores importing Duracell batteries from Europe are allegedly displaying the offending mammal on
biggest scuppered deals was in the telecommunications sector, where the attempted £10.3 billion purchase of O2 by CK Hutchison, the owner of Three, was blocked by the European Commission on competition grounds. The deal would have left just three major mobile phone network operators in the United Kingdom, resulting in reduced customer choice and higher prices. EU Competition Commissioner Margrethe Vestager said: “The goal of EU merger control is to ensure that tie-ups do not weaken competition at the expense of consumers and businesses. We want the mobile telecoms sector to be competitive, so that consumers can enjoy innovative mobile services at fair prices and high network quality.” CK Hutchison is reportedly considering a legal challenge to the decision. has intensified as customers are increasingly deterred from flying due to fears of terror attacks and political volatility around the world, while the drop in the value of sterling has increased fuel costs. The budget airline market has borne the brunt of the pain, with EasyJet predicting further turbulence and Ryanair responding aggressively, dropping ticket prices by 7% in May to lure rivals into a price war. Suits, cigarettes and bunnies No, not the dubious ‘glamour’ of Hugh Hefner’s 1970s Playboy heyday, but rather the big-ticket litigation Airlines flying high? The pressure in the aviation industry
packaging. In the ongoing suit, which Duracell failed to have dismissed, Energizer maintains that the Duracell rabbit is confusing customers and damaging its business; while for its part Duracell argues that it cannot help the presence of its European mascot on imported batteries. The bunny wars rage on… The retail sector has been rocked by scandal in the last year. Department store chain BHS collapsed following what MPs described as “systematic plunder” of the business and employees’ pension pots by former owners Sir Philip Green, Dominic Chappell and their respective “hangers-on”. After taking hundreds of millions of pounds from BHS to personally enrich himself and his family, severely weakening the business, Green sold it to Chappell, a serial bankrupt and “wide boy”, for just £1 in March 2015. Chappell also spent his tenure sucking millions from the company and just over a year later, BHS finally succumbed and went into administration with a £571 million deficit, jeopardising the pensions of some 20,000 staff members. It was alleged that Green had done most to cause the black hole by refusing to provide sufficient funding over the 15 years that he headed the business, despite pleas from the fund’s independent trustees. Parliament’s Work and Pensions Committee released a damning report on the fiasco, condemning the actions of Green and Chapell as The unacceptable face of capitalism
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