The São Paulo Court of Justice condemned the Black Friday 2021. In practice, this means that when consumers searched for these in the Google search engine, at the time, they were directed to sponsored links from Magazine Luiza itself. Understand: a645t
The decision was handed down by judge Sérgio Seiji Shimura, from the 2nd Reserved Chamber of Business Law, who decided to prohibit the retail giant from using the names of competitors in sponsored ments for the Google Ads, a platform that sells these spaces on the Google search engine, imposing a daily fine of R$5 and determining the payment of compensation for moral and material damages to Via S/A, owner of the brands Bahia Houses e Cold spot.
Understand the case 2f105r
The conflict between the retail giants happened during the Black Friday, one of the most important periods of the year for Brazilian trade. At this time of high demand, the search for online positioning becomes even more competitive among stores.
According to Via S/A, the practice of purchasing keywords from competitors was considered common, being carried out by several e-commerces. It turns out that during the Black Friday from 2021, the Magazine Luiza sent an extrajudicial notification to the Via S/A, asking that his name not be used to promote ments. To the With, the request was “contradictory”, because there was reciprocal tolerance between the companies until then.
In this context, the owner of the Bahia Houses e Cold spot decided to file the action, alleging “a brutal market imbalance” on the eve of an important period for the sector, the Black Friday.
Judicial decision and conviction 5l212d
In the first instance, the request of the Via S/A was rejected by the 1st Business Court and Arbitration Conflicts. The judge of this court understood that there was no unfair competition, arguing that consumers would be able to perceive that the ment of the Magazine Luiza was not directly related to the brands Bahia Houses e Cold spot.
However, when accepting the appeal, judge Sérgio Shimura had a different understanding. For him, the TJSP jurisprudence considers the use of third-party brands as keywords in ments to be an act of unfair competition. Furthermore, he explained that Via proved that the Magazine Luiza It even used misspelled from the brands “casas baia”, “casa bahia”, “casabaia”, to ensure even greater targeting. “There is the possibility of consumers getting confused or linking one brand to another, as if it were from the same business or economic group, causing harm to the owner of the registration or patent”, stated.
“There is the possibility of consumers getting confused or linking one brand to another, as if they were from the same business or economic group, causing harm to the owner of the registration or patent.”
Sérgio Seiji Shimura, judge of the 2nd Reserved Chamber of Business Law
In view of the above, the Sao Paulo Court of Justice determined that the Magazine Luiza immediately cease use of the names “Bahia Houses"and "Cold spot” in its sponsored ments, stipulating a daily fine of R$5 will be applied in case of non-compliance with the court decision.
In addition to the fine, the Magazine Luiza was ordered to pay compensation for moral damages in the amount of R$10. The amount relating to material damage will be determined during the settlement phase.
The sentence was handed down by majority vote, with the participation of the judges Ricardo Negrão, Mauricio Pessoa Record Brazil e Natan Zelinschi from Arruda. The reasoning for the decision also highlighted that the misuse of trademarks in sponsored ments is a violation of intellectual property rights. The evidence presented by the Via S/A showed that the Magazine Luiza used these brands deliberately to attract consumers, creating unfair competition.
In a note released by Magazine Luiza, the company argues that, contrary to the accusations, it legally acquired only its own brands or generic to run its ads on the Google Ads.
“Unlike the accusation, it lawfully purchased only its own brands or generic to run its ads on Google Ads, avoiding the misuse of third-party brands by including them in a restrictive list, which demonstrates its good faith. In relation to the TSJP decision, the company will appeal, clarify the issue and prove the regularity of its actions, as recognized in the first instance decision, as well as in the dissenting vote of judge Maurício Pessoa, accompanied by judge Paulo Roberto Grava Brazil”.
Note issued by Magazine Luiza
Sources: Digital Convergence, Jot, this is money
