Legal Disputes Over The Harry Potter Series - Accusation of Libel

Accusation of Libel

In July 2007, a dispute arose between Harry Potter's British publisher, Bloomsbury, and Asda, a British supermarket chain owned by the US corporation Wal-Mart. On 15 July, a week before the release of the final Harry Potter novel, Harry Potter and the Deathly Hallows, Asda issued a press release accusing Bloomsbury of unfairly fixing their prices. Asda spokesman Peter Pritchard claimed that Bloomsbury was "holding children to ransom" and that, "t seems like Bloomsbury need to do a quid-ditch as they have sent their prices up north on the Hogwarts Express. By setting the recommended retail price at this level can only be seen as blatant profiteering on their part." Pritchard went on to say that Asda was acting to "champion the right of young readers", and that the recommended retail price was "twice the average child's pocket money and £5 more than the average children's bestseller". Asda had planned to sell the book as a loss leader at £8.87 ($16.30), or half Bloomsbury's recommended retail price of £17.99 ($33.00) and below the wholesale price of £9.89 ($18.00).

Two days later, Bloomsbury responded that the claims were "potentially libellous" and that:

Asda's latest attempt to draw attention to themselves involves trying to leap on the Harry Potter bandwagon. This is just another example of their repeated efforts of appearing as Robin Hood in the face of controversy about their worldwide group, which would suggest they are perceived as more akin to the Sheriff of Nottingham. Loss leaders were invented by supermarkets and have nothing to do with Bloomsbury Publishing or Harry Potter and we deeply regret having been dragged into their price-wars.

Bloomsbury stated that the price hike of £1 from the previous Harry Potter novel was due to it having been printed on recycled paper. "There is a price to be paid by the consumer for environmental best practice", a Bloomsbury spokeswoman said.

Bloomsbury CEO Nigel Newton said, " unleashed a very disingenuous, self-interested attack on us. This is complete nonsense and all they're doing is grandstanding as they've done on the price of aspirin and bread. They try to turn it into a big deal as though it's a moral crusade for them, but it's nothing of the kind."

That same day, Bloomsbury cancelled all Asda's orders of Harry Potter and the Deathly Hallows, or roughly 500,000 copies, citing unpaid bills from the company totalling £38,000 ($70,000) for unauthorised returns of the sixth Harry Potter book. "The two matters are completely unrelated", said a Bloomsbury spokeswoman, "We decided today that we couldn't risk having arrears with anybody." The dispute had been "going on a while – going on for weeks actually." Asda responded that Bloomsbury owed them £122,000 ($224,000) ("for pulping and for other book trade issues and work we have done for them") and that, as one company spokesman claimed, "It just seems funny that after we expose the potty Potter price hike, Bloomsbury are trying everything they can to stop kids getting hold of Harry Potter at a price they can afford.

Asda paid the bill within hours, and claimed that Bloomsbury would be in breach of contract if it did not allow the store to sell its books. However, Bloomsbury claimed that the block on Asda's orders was still in place as, "Unfortunately, we've now had to initiate a significant libel claim against them. That matter will have to be dealt with. If they want their 500,000 books, they'll have to come and make peace with us ... It could be good news for all their disappointed customers, because they don't have to go to a soulless Asda shed to buy their book and they can share the magic of Harry Potter at an independent or specialist bookstore instead."

Upon receipt of Bloomsbury's legal letter, Asda responded that, "There is nothing defamatory in our press release. Everything there is factual. It is a commentary on how we see things." Said another Asda spokesperson, "If they don't supply us with the books, it will have a massive implication and a breach of contract – but I don't think they will do that."

Later that day, however, Asda released a statement retracting its original comment: "We apologise unreservedly to Bloomsbury for press release dated 15 July and withdraw our statement. We look forward to a good relationship with Bloomsbury going forward, including selling the latest Harry Potter book from 00:01 am BST on Saturday 21 July and many other Bloomsbury books in the future". In response, Bloomsbury lifted the block and Asda was allowed to sell its books. The original press release was then expunged.

The rationale behind Asda's initial press release remains uncertain. Neill Denny, commentator for thebookseller.com, opined that "the whole episode has the whiff of a badly-conceived PR stunt by ill-briefed senior executives at Asda out of touch with the subtleties of the book world." Ralph Baxter of Publishing News concurred: "For Asda ... it may be seen as mission accomplished, a high-risk strategy to maximise publicity for its Harry Potter offer rewarded with television, radio, Internet and newspaper coverage. And the association of Asda with low prices has no doubt been entrenched in a few more minds."