Deckers UK Limited (Respondent) v Up & Running (UK) Limited (Appellant)

Case summary

Case ID

UKSC/2026/0093

Parties

Appellant(s)

Up and Running (UK) Limited

Respondent(s)

Deckers UK Limited

Issue

The supplier operates a selective distribution system, whereby it selects who it will appoint to distribute a product. The retailer sought to open a new website to sell the product on a clearance basis, but the supplier refused permission. Does this amount to an unlawful restriction on competition by object?

Facts

The appellant (“Up & Running”) is a chain of shops which specialises in selling running shoes and equipment. It was a member of a selective distribution system (SDS) belonging to the respondent (“Deckers”). Through the SDS, Deckers selects who it will appoint to distribute its HOKA brand of running shoes. The SDS allowed Up & Running to sell its HOKA shoes. During the Covid-19 pandemic, Up & Running’s shops accumulated a substantial surplus of stock, including of HOKA shoes. To address this, Up & Running decided to establish a separate website to sell the surplus at significantly discounted prices. The separate website was not readily identifiable as an Up & Running website. Under Clause 15 of the SDS, the consent of Deckers was required to sell shoes via a website. Up & Running sought consent for this website in July 2020. This was refused by Deckers in August 2020, as they stated it was inconsistent with their brand strategy. Up & Running nevertheless proceeded to launch the website in November 2020. Deckers then terminated Up & Running’s account in December 2020, with 12 months’ notice. Up & Running contended that the termination of its account was an unlawful restriction of competition, in breach of the Competition Act 1998 (“the CA 1998”). It commenced proceedings before the CAT and sought damages, arguing that Deckers’s Terms and Conditions were unlawful “by object”. The Competition Appeal Tribunal found that Decker had infringed the CA 1998. On appeal, the Court of Appeal allowed Deckers’s appeal, finding that the Tribunal had applied the wrong legal test. Up & Running now appeals to the Supreme Court.

Date of issue

8 July 2026

Case origin

PTA

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