ALDI, the German supermarket chain, is being accused of imitating an Australian startup’s successful teddy bear, offering their own version at a significantly lower price. Sisters Pru and Sarah launched their brand in 2001 and have since sold over 500,000 of their original teddy bears, known as Flatout Bears, priced at approximately $74. In contrast, ALDI’s replica retails for just $14.99.
The sisters’ bears stand out due to their high-quality materials, being crafted from 100% sheepskin and meticulously hand-cut and sewn. However, according to trademark lawyer Will Hird, there are limited legal options available to combat this imitation as the product lacks robust intellectual property protections. He noted that only the brand name and logo are trademarked, making it easy for competitors to launch similar products.
ALDI claims to have sourced their bear from a local supplier, stating that these items are not exclusive to their stores and that similar products are available elsewhere. A Current Affair, which has been looking into the situation, has yet to receive a response from the supplier.
In response to the allegations, ALDI released a statement emphasising their respect for intellectual property laws and noting that they have not been informed of any infringement claims regarding the Flatout Bear. They assert that their sourcing decisions are driven by customer demand and highlight the presence of several similar products on the market.
The ongoing situation underscores the challenges small businesses face when dealing with larger corporations, particularly in terms of protecting their unique products.