Estée Lauder has filed a lawsuit against Walmart alleging trademark infringement tied to the sale of counterfeit beauty products on Walmart’s third-party marketplace, Retail Dive has reported.
In a complaint filed Monday, Estée Lauder and several of its brands claim unauthorized sellers on Walmart’s platform are offering fake versions of products spanning labels including Le Labo, La Mer, Estée Lauder, Clinique, Aveda and Tom Ford.
The filing includes photographs of allegedly counterfeit items and argues that the listings infringe on registered trademarks.
The cosmetics group contends that the structure of Walmart’s online marketplace could lead shoppers to reasonably believe Walmart itself is the seller of the accused products, citing how third-party sellers are disclosed on product pages.
It further points to Walmart’s public statements that it vets marketplace sellers to ensure they provide high-quality customer experiences, arguing that this amounts to Walmart having “permitted and selected” the sellers in question.
Walmart said it is aware of the complaint and maintains it has “zero tolerance for counterfeit products.” The retailer added that it will respond in court once formally served.
Estée Lauder is seeking a jury trial and court orders requiring Walmart to stop importing, marketing and selling the allegedly infringing goods.
The company is also requesting damages, disclosure of the suppliers or manufacturers behind the products, and an accounting of profits derived from the sales.
The complaint additionally names unidentified third-party marketplace sellers as defendants, noting that their true identities are currently unknown. Estée Lauder said it intends to amend the filing once those parties are identified.
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