Estée Lauder has taken a stand against Walmart in a California federal court, claiming that the retail giant is peddling counterfeit versions of its highly regarded fragrance and skincare brands, such as Clinique, Tom Ford, and Le Labo.
In the lawsuit, Estée Lauder alleges that Walmart’s website has been selling fake products that closely mimic the packaging and branding of well-known items such as Tom Ford and Le Labo fragrances, along with popular skincare creams from Clinique and La Mer, as well as Aveda hair brushes.
The cosmetics powerhouse is seeking a significant amount of monetary damages along with a court order to prevent Walmart from continuing to offer these alleged knockoffs.
As of Tuesday, Walmart had not provided a response to media inquiries about the suit. Similarly, representatives from Estée Lauder have also not issued comments.
The fragrance division of Estée Lauder has witnessed substantial growth, particularly as Generation Z consumers gravitate towards brands like Le Labo and Tom Ford.
The lawsuit argues that Walmart fails to adequately verify that only authorized and genuine products are sold on its platform, resulting in the distribution of counterfeit items that can easily mislead consumers.
Despite being based in Bentonville, Arkansas, Walmart’s robust e-commerce expansion recently positioned it as the first retailer ever to reach a market valuation of $1 trillion earlier this month.
Estée Lauder’s legal claims against Walmart span trademark infringement, counterfeiting, and false designation of origin concerning the alleged fakes.
