Estée Lauder sues Walmart, alleging Walmart.com enables sale of counterfeit luxury cosmetics

Estee Lauder accuses Walmart of enabling sale of counterfeit luxury cosmetics

Estée Lauder Companies files a federal suit in the U.S. District Court for the Central District of California, accusing Walmart Inc. of allowing counterfeit beauty and fragrance products to be sold through Walmart.com. The complaint says Estee Lauder purchased, inspected and tested multiple items — including an Advanced Night Repair serum, a Le Labo fragrance, Clinique Smart Clinical Repair eye cream, a La Mer lotion, an Aveda hair brush and a Tom Ford fragrance — and determined several were inauthentic. It notes two of the items tested match products cited in a recent CNBC investigation into fraud on the marketplace.

The complaint alleges Walmart does more than host third‑party listings and instead actively facilitates, promotes and benefits from counterfeit sales. Estee Lauder contends Walmart uses its site layout, search engine optimization and advertising to drive traffic to listings using Estee Lauder trademarks, presents checkout and return processes in ways that lead shoppers to believe Walmart is the seller, controls payments and often handles fulfillment, and profits from fees tied to those sales. The filing characterizes Walmart’s conduct as “extreme, outrageous, fraudulent … despicable and harmful,” and says the retailer promotes seller “reputation and professionalism” while doing little to ensure only authorized and authentic products appear on its platform.

The suit advances claims including vicarious trademark infringement and seeks unspecified monetary damages, potentially trebled if willful violations are found, as well as injunctive relief to halt sales, destroy counterfeit inventory and require disclosure of suppliers. Estee Lauder points to precedent in a prior case involving Vans where a court found consumers could reasonably believe items on Walmart.com were sold by Walmart rather than third‑party vendors, arguing that legal remedies are necessary to protect brands and consumers on large online marketplaces.

Tom Ford alleges trade dress copying of Private Blend bottles

The complaint includes a separate claim from Tom Ford, which alleges knockoff bottles copy the rectangular shape, flared cap, monochrome color scheme and signature nameplate of its Private Blend collection, asserting trade dress infringement in addition to the trademark allegations brought by Estée Lauder Companies’ brands.

Walmart says it is aware of the complaint and has “zero tolerance for counterfeit products,” adding it will respond appropriately in court when served. The lawsuit comes amid growing scrutiny of marketplace practices as large retailers and luxury brands confront counterfeit supply chains and the challenges of policing third‑party online sellers.