17-7-2023 (KUALA LUMPUR) Swiss watchmaker Swatch has filed a lawsuit against the Malaysian government and Home Ministry officials, seeking compensation and the return of 172 watches that were confiscated on grounds of their alleged association with the LGBT rights movement, commonly known as Pride.
Swatch has petitioned the High Court to invalidate the Home Ministry’s seizure notices issued in May for the watches valued at RM64,795 (approximately $15,300). The company is also seeking court orders for the return of the seized watches within five days and compensation, including aggravated and exemplary damages.
The lawsuit was filed by Swatch Group (Malaysia) Sdn Bhd on June 24 through a judicial review application at the High Court in Kuala Lumpur. The four respondents named in the lawsuit are the Home Ministry chief secretary, the Home Ministry’s enforcement division secretary, the home minister, and the government of Malaysia.
Swatch claims that the actions of the Home Ministry’s officers were illegal, irrational, and involved procedural impropriety. According to the company, its watches have been sold in Malaysia since 1995 through its stores, which primarily employ Malaysians and authorized resellers.
The Home Ministry officers raided 16 Swatch stores across Malaysia from May 13 to May 15 and seized 172 watches featuring designs associated with Pride. The ministry cited the Printing Presses and Publications Act (PPPA) 1984 as the reason for the seizures, claiming that the watches promoted or contained elements of LGBT.
Out of the confiscated watches, 143 units belonged to the recently launched Pride collection, which had been advertised on Swatch’s website since May 4, 2023. The remaining 29 units were from previous years’ Pride collections and had been available for sale in Malaysia since June 2, 2022.
Swatch argues that its sales in Malaysia primarily cater to Malaysians, with only 19.52 percent coming from tourists. The company states that it has not received any complaints from the public regarding the seized watches.
Swatch claims that the seizures were illegal since the watches do not fall under the category of publications that can be prohibited under the PPPA. The company further contends that the Home Ministry officers lacked the authority to raid its stores and seize the watches.
The lawsuit alleges inconsistency in the Home Ministry officers’ actions during the raids, as some officers seized all watches from the Pride collection, including those on display and in stock, while others only seized displayed watches. Swatch also argues that other companies’ Pride products have been freely available for sale in Malaysia for years without any ban imposed by the home minister.
Prior to filing the lawsuit, Swatch sent a letter on June 9 demanding the return of the seized watches, but the company claims it has not received a response from the Home Ministry.
Swatch argues that the refusal to return the watches violates its constitutional rights to livelihood and property. The company states that it has suffered damage to its trading reputation and that its ability to conduct business freely has been severely jeopardized.
The High Court is scheduled to hear Swatch’s application for leave for judicial review on July 20. The court’s decision on granting leave will determine whether the lawsuit proceeds to a full hearing.
