Notino, a Czech retailer of perfumes and cosmetics, has faced a significant legal setback as its constitutional complaint regarding the requirement to disclose the source of its Chanel products was rejected by the Constitutional Court of the Czech Republic. The court found the complaint to be evidently unfounded, upholding lower court decisions that ruled in favor of Chanel, which sought information about the suppliers from whom Notino had acquired its products. This ruling has implications for Notino's business practices, especially considering Chanel's selective distribution system that restricts sales to approved retailers only.

The controversy hinges on Notino's initial sourcing of Chanel products approximately ten years ago when it was not part of Chanel's selective distribution framework. Despite this, Notino proceeded to sell these products through its online platform, leading Chanel to question the legitimacy of Notino's supply chain. The Prague City and High Courts had already determined that Chanel had a right to this information, culminating in the Supreme Court of the Czech Republic also ruling against Notino's appeal, compelling the retailer to comply with Chanel's demands for transparency.

This case highlights the ongoing tensions between brand manufacturers and online retailers, particularly in the luxury goods sector. The decision emphasizes the importance of compliance with brand distribution strategies and the legal obligations that retailers have when dealing with proprietary products. As the market continues to evolve, this incident underscores the scrutiny that online retailers may face regarding the sources of their inventory, reinforcing the necessity for adherence to brand regulations and distribution criteria.