Magalu and Casas Bahia owner quarrel in court over Google ads

the Louisa Stores it is in via retail – The owner of Casas Bahia and Ponto – are the protagonists of a judicial impasse in which they accuse each other of “unfair competition” due to advertisements in google browser. The dispute was reported and confirmed by O Globo newspaper UOL, who gained access to the operations.

The companies claim that when you type the names of the companies into the search engine, the search result leads to competitor links. The two accuse each other in the TJ-SP (Court of Justice of São Paulo) of including the other brand’s name in the word list associated with their advertisement.

It was the first action Transfer fur Louisa Stores against via retail On November 25 last year. The company accuses the owner of Casas Bahia of running advertising links linked to searches for the phrase “Louisa StoresE “Magalo”.

“When a third party, in particular a competitor, acquires an advertisement based on a distinctive mark of another party, it is concluded that there has been trademark infringement and unfair competition.”

On the same day, according to O Globo newspaper – who had access to the records -, Louisa Stores He obtained a positive decision from Judge Eduardo Palma Pellegrinelli, of the 2nd Business Court of Arbitration Disputes. Urgent relief granted so that via retail Stop using trademarks to advertise sponsored links. The judge gave the owner of Casas Bahia and Ponto a maximum of two hours to comply with the decision and imposed a fine of R$5 million in case of non-compliance.

The process is still awaiting a decision on the merits. Luiza magazine asks justice to order the competitor to pay compensation of at least R$150,000 for material damages.

Via retail discount

On December 1 of last year, via retail He also sued Louisa magazine, claiming that the competitor had been ordered to pay damages. The retailer accuses Magalu of using the Casas Bahia and Ponto Frio brands, including typos, such as keywords for sponsored links on Google and other platforms, such as Bing.

According to O Globo, Via Varejo acknowledges this practice, but says that this type of advertising “was a common and tolerant practice in this segment (high access markets), in line with free enterprise, economic order and freedom of consumer choice”, but that this competitor “changed the dynamics self-regulation” by suing him first.

Judge Luiz Felipe Benedi, of the First Commercial Tribunal for Disputes and Arbitration, issued an injunction ordering Luisa Magazine to “stop using the trademarks” of competitors.

Magazine Luiza denied that it hired ads using Via Varejo’s trademarks as keywords and accused the competitor of making accusations based on “lies and omissions”. The company enclosed reports from the Google Ads system showing that it was not infringed.

In a note sent to UOLMagalu’s advisor said he does not comment on ongoing operations. On the other hand, Via Varejo had not sent any position until this article was published.