The Court of Appeal is currently deciding a high-stakes case between Deckers UK Limited and the retailer Up & Running that could change how brands control their prices online. The dispute focuses on HOKA running shoes and whether a manufacturer can legally stop a retailer from selling clearance stock on an unbranded website.
The conflict began when Up & Running wanted to launch a generic website to sell off extra HOKA stock at a discount. Deckers refused, pointing to a rule that requires all online sales to happen on sites that match the name of the retailer’s physical shops. When Up & Running launched the site anyway, Deckers cut off their supply. The retailer then sued, arguing that Deckers was simply trying to keep prices artificially high.
The Competition Appeal Tribunal originally ruled against Deckers. It found that the company’s main goal was to “discipline” the retailer and prevent heavy discounting. The tribunal labeled this “Resale Price Maintenance,” a serious legal breach. Because it was classified this way, the tribunal decided the move was illegal based on intent alone, without needing to prove that the wider market was actually harmed.
Deckers is now appealing that decision with support from the Competition and Markets Authority. The company argues that the tribunal’s view was too narrow. They point out that Up & Running was still allowed to discount HOKA shoes in its 29 physical stores and on its main branded website. Deckers maintains that its rules are a fair way to protect its brand image and its network of specialized shops, rather than a plot to destroy competition.
