Estée Lauder has launched a major legal action against retail giant Walmart, alleging the sale of counterfeit personal care products on Walmart's online marketplace. The lawsuit, filed in federal court, seeks substantial monetary damages and demands that Walmart cease selling items bearing Estée Lauder's trademarks.
Allegations of Widespread Counterfeiting
The complaint specifically targets counterfeit versions of skincare and fragrance products from prestigious Estée Lauder brands, including Aveda, Clinique, La Mer, Le Labo, and Tom Ford. All these brands are named as plaintiffs in the legal action, underscoring the breadth of the alleged infringement.
According to the lawsuit, products sold by third-party vendors on Walmart.com feature marks that are identical, substantially indistinguishable, or confusingly similar to Estée Lauder's registered trademarks. The filing harshly criticises Walmart's oversight, describing it as "extreme, outrageous, fraudulent … despicable and harmful".
Evidence of Fake Products
Estée Lauder claims it purchased items from Walmart.com that bore its trademarks and conducted tests proving the products did not originate from the company, confirming they were fakes. The lawsuit also highlights instances where products used near-identical marketing to genuine Estée Lauder items.
One striking example cited is a fragrance sold on Walmart's website called "Intense Peach", which was placed next to an image of Tom Ford's "Bitter Peach" fragrance. Both use a nearly identical orange in their box design, similar bottle shapes, and square white labels with orange sans-serif, all-caps fonts, creating clear visual confusion.
Claims of Inadequate Oversight
The lawsuit alleges that Walmart does "very little" to ensure the authenticity of products sold on its platform, despite a stated careful selection process for marketplace sellers. It argues that Walmart knew or should have known that its partners were selling infringing products.
"This is readily apparent given the [counterfeits] were permitted to be sold on Defendants’ website despite their stated careful selection process in who they choose as a Marketplace seller/partner," the complaint states.
Specific Products Targeted
Beyond fragrances, Estée Lauder identifies other allegedly counterfeit items sold on Walmart.com, including Aveda hairbrushes, Clinique skin creams, La Mer lotions and moisturisers. The company asserts that these fakes not only violate trademarks but also mislead consumers who might reasonably believe Walmart itself is the seller.
Legal Demands and Corporate Responses
Estée Lauder is demanding monetary compensation and a court order to stop Walmart from selling any products carrying its brands' trademarks. In response, Walmart issued a statement to CNBC saying, "We are aware of the complaint and have zero tolerance for counterfeit products. We will respond appropriately with the court when we are served."
The Independent has also requested comment from Walmart regarding the allegations. The case highlights ongoing challenges in e-commerce marketplaces where third-party sellers can list items that may infringe on intellectual property rights, potentially damaging brand reputation and consumer trust.
