Tesco sues for defamation in UK and Thailand
Posted by Andrew Grant-Adamson on 5th April 2008
Two remarkably similar comments about Tesco, the UK’s biggest retailer, have been made 6,000 miles apart. The first is from today’s Guardian and the second from the Southeast Asian Press Alliance on March 19.
Instead of frankly explaining their position and/or engaging in a public dialogue Tesco has taken the extraordinary step of suing for libel in a clear attempt to close down the debate and discourage others from looking too closely.
It’s hard to think of another large public company which would resort to such bullying tactics.
The Southeast Asian Press Alliance (SEAPA) strongly condemns the heavy-handed attempts of Tesco Lotus to intimidate its critics, and thereby sending a chilling message to civil society and members of the press. Civil defamation suits of this nature and of such absurd proportions are not really meant to win in court, but rather to intimidate independent media, harass legitimate criticism, and stifle discussions and debate over legitimate public concerns.
Tesco has started legal proceedings against the Guardian and editor Alan Rusbridger over allegations made by the paper about its tax affairs. The paper alleged that complex tax arrangements were to avoid paying £1bn in UK corporation tax. Tesco denies this but says it will save up to £63m in stamp duty.
Across the word in Thailand where Tesco is expanding rapidly, its legal department is gunning for an ex-MP who runs the Thai chamber of commerce and a newspaper columnist.
It is not the criticism of the effects of the rapid expansion of Tesco which both men suggested could lead to serious conflict with small retailers, that has brought the action.
It is their suggestion that as much as 37 per cent of Tesco’s global revenue came from Thailand that is being challenged by the company which is seeking damages totalling 1.1bn baht (£17.4m). The two men accept the figure was wrong.
Tesco opened its first store in Thailand in 1998 and its 2007 annual report showed the number had risen to 370. The figure now is said to be approaching 500.
We always knew Tesco was an aggressive retailer but taken together these cases look like the makings of a spectacular own goal.
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