Marks & Spencer won substantial damages and an apology in the High Court yesterday after Granada TV admitted one of its World in Action programmes libelled the retailer.

The programme, “St Michael: Has The Halo Slipped?”, broadcast on January 8 1996, alleged M&S knew one of its suppliers was using child labour in a Morrocan factory and that it knowingly misled customers by selling clothes made there under “Made in the UK” labels.

The jury found in favour of M&S, which argued it had been unaware of child exploitation or switching labels. Granada settled with M&S, and agreed to pay 50,000 damages, which M&S says it will pay to charity, and 650,000 costs. It is estimated the case will cost Granada 2m.

The News of the World, which shadowed the World in Action probe, was also sued by M&S but settled in June 1996.