Executive Summary
This case concerns a contractual dispute between Electric Mania Ltd (Claimant) and Avron Trading Ltd (Defendant) over the sale of hand sanitiser products—Lonstin gel and GCG liquid—during the early COVID-19 pandemic. The Claimant alleges breach of contract and misrepresentation, asserting the products were worthless or significantly less valuable than paid for, primarily due to regulatory warnings from the MHRA that halted sales. The Defendant contends the Claimant simply made a poor commercial decision amid fluctuating market conditions, denying any breach or misrepresentation. The court examined product marketing, contractual terms, and the Claimant’s efforts to sell the sanitiser, ultimately focusing on whether the Defendant misrepresented product efficacy and quality.
Sanctions Highlights
- Sanctions implications: —
No sanctions or related regulatory restrictions were implicated in this dispute.
Emerging Risks
- Regulatory risk: MHRA’s warning letter in January 2021 threatened prosecution if Lonstin continued to be marketed, effectively halting sales and devaluing the product.
- Market risk: Rapid price volatility and oversupply of sanitiser products during the pandemic led to significant commercial risk for buyers targeting premium pricing.
- Reputational risk: The Claimant’s admission of using misleading marketing tactics ("sold" claims) to stimulate sales may impact credibility in future commercial dealings.
Geopolitical Impact
- The case highlights pandemic-driven market disruptions within the UK and EU regulatory environment, particularly the role of the MHRA in enforcing product standards.
- The UK’s regulatory framework for medical and hygiene products influenced commercial contracts and product viability during COVID-19 lockdowns.
- The dispute reflects broader challenges faced by businesses in the UK and EU adapting to sudden demand spikes and regulatory scrutiny amid global health crises.
Economic Intelligence
- The Claimant purchased 40,000 bottles of sanitiser at £2.00–£2.50 each, intending to resell at £6–£8, but market prices quickly collapsed to as low as £0.40 per bottle.
- The pandemic created a short-term surge in demand and price inflation for sanitiser, followed by rapid market saturation and price deflation.
- The Claimant’s failure to sell stock at anticipated prices resulted in substantial financial losses, exacerbated by regulatory intervention restricting product marketing.
Strategic Recommendations
- Buyers should conduct rigorous due diligence on product claims and regulatory compliance, especially for medical-grade or health-related products.
- Contracts must explicitly include warranties on product efficacy and labeling to mitigate risks of misrepresentation.
- Businesses should monitor regulatory developments closely to anticipate and respond to compliance risks that can affect product marketability.
- Marketing strategies must maintain transparency to preserve trust and avoid reputational damage.
- Diversification of suppliers and product lines can reduce exposure to sudden market or regulatory shocks.
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**Source Notes:**
Sanctions Intelligence Digest — [https://empyreanprotocol.com/litigation/view/www.bailii.org/ew/cases/EWHC/Comm/2025/159.html](https://empyreanprotocol.com/litigation/view/www.bailii.org/ew/cases/EWHC/Comm/2025/159.html)