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Supreme Court to rule on Nike sweatshop claim

David Usborne
Sunday 20 April 2003 19:00 EDT
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The sports shoe giant Nike is at the centre of a landmark legal battle due to reach the United States Supreme Court this week that could alter the rules surrounding the kinds of commercial claims that companies can make for their products.

The case arises from the controversies that swirled around Nike a few years ago over its treatment of so-called sweatshop workers in developing countries. It is attracting the attention of the anti-globalisation movement.

The action, which could force Nike to surrender hundreds of millions in profits, has been brought by a California activist and former runner, Mark Kasky. He has accused Nike of lying in broadly benign statements it made about the sweatshops in 1996 and 1997.

Nike is challenging a decision by the California Supreme Court last year that paved the way for a full trial in the case.

The assertions made by Nike were not contained in advertising to the public, but in letters to newspapers, universities and sporting organisations and press releases. The company is arguing that these messages were not "commercial speech" as such, designed to boost sales, but statements of policy that should be protected by free-speech laws.

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