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1930

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The battle against “Migros Food Sales Lucerne”

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When Migros AG expanded to Lucerne in 1930, the local grocery retailers established a company with a confusingly similar name: «Migros Food Sales Lucerne ». Gottlieb Duttweiler tried to fight this situation, but misjudged it: the courts actually fined him for defaming the competition.

When rumours circulated that Migros AG was soon expanding to Lucerne, 62 grocery retailers used a cunning ploy. In 1930 they formed the company «Migros Food Sales Lucerne» and advertised widely under that name. When Migros opened a branch shortly afterwards, it warned its customers: «Anyone that tries to mislead you with the name should be suspected of deceiving consumers in terms of both price and quality. Only Migros AG Zurich has the right to use the good name Migros.» «Migros Food Sales» then announced that it was suing the «Zurich company which opened after us» for financial damages caused by «libel and slander».
Gottlieb Duttweiler argued unsuccessfully in court that he had merely sought to stave off «a disloyal offensive». He even went to the Federal Court, but without success. The court ruled that Duttweiler hadn’t simply sought to defend against the damage caused by the names being confused, but had actually implied that the competition sells «inferior goods» at «fixed prices». So in addition to a fine, he had to pay the expensive court costs.