Nestlé Accuses 'Free Rider' Of Selling Gray-Market Drinks

Law360 (March 26, 2020, 3:01 PM EDT) -- Nestlé USA has lodged a trademark lawsuit accusing a Mexico-based "free rider" of illegally selling so-called gray-market versions of its Nescafé Clásico and Abuelita drink products.

In a lawsuit filed Wednesday in Texas federal court, Nestlé claimed that Ultra Distribuciones Mundiales SA de CV imported and sold versions of its Nestlé Mexico products that were meant to be sold only in Mexico and differed from products approved for U.S. consumers.

This problem — known as "parallel imports" or "gray market goods" — has caused confusion to consumers who don't realize that the products are unauthorized for resale in the U.S. and...

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