Estée Lauder Sues Walmart Over Alleged Counterfeit Listings, Trade Dress Copying

Estée Lauder escalates legal bid against Walmart marketplace

Allegations of counterfeit listings and trade dress copying

Estée Lauder Companies and several of its luxury brands file a federal lawsuit in the U.S. District Court for the Central District of California accusing Walmart of allowing counterfeit beauty and fragrance products to be sold through its online marketplace. The complaint names alleged knockoffs of Estée Lauder’s Advanced Night Repair and fragrances from brands including Le Labo and Tom Ford, saying the counterfeit items were listed and sold on Walmart.com by third‑party vendors.

The lawsuit contends Walmart’s website design, checkout system and return processes create a likelihood that shoppers believe Walmart itself is the seller even when third parties supply the items. Plaintiffs say Walmart selects and partners with marketplace sellers, controls payments and checkout flows, often handles fulfillment and returns, and earns fees from those sales — actions the complaint argues give Walmart responsibility for infringing listings. The filing cites a prior federal decision involving Vans in which a court found consumers might reasonably believe products on Walmart.com are sold by Walmart.

Tom Ford separately alleges trade dress infringement tied to its Private Blend collection, claiming copycat bottles mimic the rectangular shape, flared cap, monochrome color scheme and signature nameplate. The complaint brings claims including vicarious trademark infringement and seeks unspecified monetary damages — potentially tripled if the court finds willful violations — as well as an injunction to halt sales, orders to destroy remaining counterfeit inventory and demands for disclosure of suppliers.

Walmart says it will defend itself

Walmart says it is aware of the complaint, reiterates a zero‑tolerance stance on counterfeit products and states it will respond appropriately when served in court. The retailer emphasizes ongoing efforts to remove counterfeit listings and to work with rights holders, while reserving its legal defenses.

Industry scrutiny of online marketplaces intensifies

The suit arrives amid heightened scrutiny of third‑party marketplace practices as large retailers balance growth of online marketplaces with brand protection. The case lands while Walmart, under the leadership transition away from CEO Doug McMillon, manages pressures from inflation, tariffs and rapid adoption of AI tools — factors that complicate efforts to police listings and protect consumer trust.