BIDCO to pay A.K. Oils sh70m
Mar 29, 2009
The High Court has ordered BIDCO Uganda Ltd to pay sh70m to its competitor A.K. Oils and Fats Ltd after losing an industrial sabotage case brought against it.
By Anne Mugisa
The High Court has ordered BIDCO Uganda Ltd to pay sh70m to its competitor A.K. Oils and Fats Ltd after losing an industrial sabotage case brought against it.
A.K. Oils and Fats Ltd dragged BIDCO to court after the latter ran adverts in the press in August 2005, which A.K. Oils said were defamatory.
The adverts juxtaposed A.K Oils product “THREE STAR†and BIDCO’s “UFUTA†contrasting the products and their packaging and bearing the warning “Be Aware.â€
“The advertisement is a veiled warning to consumers as to the labelling practices of the plaintiff (AK Oils and Fats),†A.K Oils complained.
It sought the High Court to order BIDCO to pay it sh4b in damages. The case was heard by Justice Yorokamu Bamwine.
The Judge ruled that the sh4b would be unrealistic, but said the sh70m attracts an annual interest of 25%.
The plaintiff complained that the advertisements were grossly erroneous and designed to convey a false impression as to its products.
It said it has never tried to mislead its clients and consumers.
“Accordingly, the plaintiff states that there is no deception or misleading of consumers and no unethical practices of which they should rightly “be aware†as stated in the adverts,†the Judge stated.
The judge agreed with AK Oil Ltd. that BIDCO Ltd. defamed it.
He noted that BIDCO juxtaposed their product with that of A.K Oils and then issued a warning against AK Oils’ product.
In the advert, BIDCO also described A.K. Oils product as blended oil and their own as 100% pure palm vegetable cooking oil. Underneath the contrast, they wrote that “BIDCO is an ethical company that always upholds integrity. So go out today and buy a BIDCO product. BIDCO only charges you for the oil, the jerrican is free.â€
The High Court has ordered BIDCO Uganda Ltd to pay sh70m to its competitor A.K. Oils and Fats Ltd after losing an industrial sabotage case brought against it.
A.K. Oils and Fats Ltd dragged BIDCO to court after the latter ran adverts in the press in August 2005, which A.K. Oils said were defamatory.
The adverts juxtaposed A.K Oils product “THREE STAR†and BIDCO’s “UFUTA†contrasting the products and their packaging and bearing the warning “Be Aware.â€
“The advertisement is a veiled warning to consumers as to the labelling practices of the plaintiff (AK Oils and Fats),†A.K Oils complained.
It sought the High Court to order BIDCO to pay it sh4b in damages. The case was heard by Justice Yorokamu Bamwine.
The Judge ruled that the sh4b would be unrealistic, but said the sh70m attracts an annual interest of 25%.
The plaintiff complained that the advertisements were grossly erroneous and designed to convey a false impression as to its products.
It said it has never tried to mislead its clients and consumers.
“Accordingly, the plaintiff states that there is no deception or misleading of consumers and no unethical practices of which they should rightly “be aware†as stated in the adverts,†the Judge stated.
The judge agreed with AK Oil Ltd. that BIDCO Ltd. defamed it.
He noted that BIDCO juxtaposed their product with that of A.K Oils and then issued a warning against AK Oils’ product.
In the advert, BIDCO also described A.K. Oils product as blended oil and their own as 100% pure palm vegetable cooking oil. Underneath the contrast, they wrote that “BIDCO is an ethical company that always upholds integrity. So go out today and buy a BIDCO product. BIDCO only charges you for the oil, the jerrican is free.â€