No More Discounts at C&A

European clothing retailer C&A was dealt another blow today as the Düsseldorf court of first instance ruled against a further discount campaign that the brand began on Friday.

Yesterday the same court had forced the retailer to withdraw a 20 percent discount for customers paying with a credit card rather than cash.

The second time round, C&A tried to extend the same discount packet to its customers paying in cash till January 5.

Both the campaigns are time-bound, pressure customers to buy and are therefore unacceptable, ruled the court. The court issued its ruling after adverts for the discount offer prompted a formal complaint from the Association for the Fight Against Illegal Competition.

The judges now have to resolve the issue of fining the clothing retailer for its breach of a 70-year-old law on "special offers" banning discounts on a store’s entire stock for a limited period of time.

Initially the German Competition Authority that took C&A to court yesterday, had demanded that the retailer be fined up to 250,000 euro for ignoring a court ruling and continuing with its special discounts.

The C&A group remains defiant and maintains that it does not accept the court’s legal arguments. Its lawyers will attempt to have the injunction lifted.

C&A began its controversial discount campaign following the introduction of the euro, saying that it was intended to cut queues at the tills and reward customers paying with a credit card or charge card.

The controversy has led to fears of covert price rises following the introduction of the euro and a renewed price war in an already fragile retail industry.