L’Oreal, globally renowned cosmetics and beauty group, has filed a case against discount retailer MyDollarStore in the Delhi High Court (HC) for illegal imports over the issue of Intellectual Property Right (IPR).
L’Oreal is upset over the move by MyDollarStore to import top global brands, claiming that this leads to loss of business opportunity, unfair competition and product cannibalisation, revealed a source in the company. However, discussions are on between the two parties and the talks could lead to an out-of-court settlement. Both the companies prefer to remain tightlipped about the issue, added the source.
L’Oreal operates in India through its wholly-owned subsidiary, L’Oreal India and has four divisions including consumer products, professional products, active cosmetics and luxury products. On the other side, MyDollarStore is a discount store chain which set up shop in 2004 and now has 47 stores across several cities.