Global Edition

Callaway acts to stop ‘grey-market‘ imports

12.00pm 16th May 2005 - Corporate

Callaway Golf Europe, a wholly owned subsidiary of Callaway Golf Company, has announced that Golf 56, a chain of Spanish golf shops, has formally agreed not to illegally import Callaway Golf products from outside the European Economic Area in exchange for the dropping of a lawsuit filed by Callaway Golf Europe in Granada, Spain.
The settlement reached between the parties also resulted in forfeiture of illegally imported products and payment of a substantial portion of Callaway Golf Europe’s legal fees.
Callaway Golf Europe filed suit against Golf 56 based on European law that prohibits such ‘grey market‘ imports from outside the European Economic Area. ‘Grey market‘ products are prohibited because they can undermine consumer-oriented distribution programs carefully established by companies like Callaway Golf.
“We are very pleased with this result,” said Neil Howie, managing director of Callaway Golf Europe. “We filed this suit because we believe that our network of Preferred Retailers provides an outstanding experience to consumers, and we did not want the ‘grey market‘ to interfere with a system that is working for us, our customers and consumers. The result vindicates our decision and permits us to continue to offer this high level of service and support.”

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