The European Union's highest court ruled Thursday that Dior luxury fashion company can bar the resale of its goods by discount stores.
The Court of Justice said Dior can prevent a licensee from passing on goods to discount stores if it damages the allure and prestigious image which bestows on those goods an aura of luxury.
The ruling came after a French high court sought advice in a dispute between Christian Dior Couture SA and licensee Societe Industrielle lingerie over the sale of Dior luxury corsetry goods to a discount store.