Two lawsuits are pending in the São Paulo Court in which Magazine Luiza and Via Varejo are accused of unfair competition, for sponsored ads on Google using the name of the competitor. In both cases the companies obtained preliminary injunctions (see below). The judgment of merit has not yet been set to take place.
Magazine Luiza and Via Varejo are fighting in court.(Image: Reproduction)
Process filed by Magazine Luiza
Magalu was the first to file a lawsuit, just before Black Friday, in November. In the lawsuit, which is being processed in the 2nd Business Court and Arbitration Conflicts, he alleged that Via Varejo hired Google sponsored advertising services so that its website would appear as a prominent result if the user used the brands “Magazine Luiza” and “Magalu” as search terms.
When granting the preliminary injunction, Judge Eduardo Palma Pellegrinelli pointed out that the fact that the plaintiff did not authorize such use of the trademark is sufficient to characterize the probability of the right.
“Furthermore, the use of the author’s brand in sponsored advertisements can cause confusion in consumers, which can generate damages that go beyond the pecuniary aspect, especially during the period known by the trade as ‘Black Friday’, characterized by the announcement of the concession of large retail discounts and attracting large numbers of consumers, which characterizes the danger of damage.”
For these reasons, it granted relief in order to oblige Via Varejo to refrain from using the expressions “Magazine Luiza” and “Magalu”, or any other similar to them, for advertisements and sponsored links.
Process brought by Via Varejo
Via Varejo filed a lawsuit against the competitor a few days later. The case is being processed in the 1st Business Court and Arbitration Conflicts. The company basically made the same accusations and said that Magalu linked the brands “Casas Bahia” and “Ponto Frio” as search criteria in the sponsored links.
In the preliminary analysis of the case, the judge of Law Luis Felipe Ferrari Bedendi denied the processing of the deed under judicial secrecy, but he accepted the request of Via Varejo to prohibit the competitor from using the brand as a keyword in searches.
Read the decisions of Magalu and Via Varejo.