Finance

Estee Lauder Sues Walmart Over Alleged Sale of Counterfeit Beauty Products

QM
Quinn Martinez
Culture & Trends Editor
This chart explains why gold has been so volatile lately
Image source: feeds.marketwatch.com

Estee Lauder Companies Inc. has filed a lawsuit against Walmart Inc. alleging that the retail giant knowingly sold counterfeit Estee Lauder beauty products on its online marketplace. The lawsuit, filed in the U.S. District Court for the Southern District of New York, claims that Walmart facilitated the sale of counterfeit products by allowing third-party sellers to operate on its platform without proper vetting.

The lawsuit alleges that Walmart's failure to properly monitor its marketplace allowed counterfeiters to sell fake Estee Lauder products, including perfumes, skincare, and makeup. Estee Lauder claims that the counterfeit products were sold at a lower price than the genuine products, which further confused consumers.

The lawsuit seeks damages and an injunction to stop Walmart from selling counterfeit Estee Lauder products. This is not the first time Estee Lauder has taken action against counterfeiters. In 2020, the company filed a lawsuit against several online marketplaces, including Amazon and eBay, for selling counterfeit Estee Lauder products.

The lawsuit against Walmart is a significant development in the ongoing battle against counterfeiting in the beauty industry. The beauty industry is particularly vulnerable to counterfeiting, with many consumers unaware that they are buying fake products.

Estee Lauder's lawsuit against Walmart highlights the need for online marketplaces to take greater responsibility for policing their platforms and preventing the sale of counterfeit products. The lawsuit also underscores the importance of consumers being aware of the risks of buying products online and taking steps to verify the authenticity of products before making a purchase.

The lawsuit is a reminder that counterfeiting is a serious issue that affects not only the beauty industry but also consumers who may unknowingly purchase fake products. Estee Lauder's lawsuit against Walmart is a significant step in the fight against counterfeiting and highlights the need for greater accountability from online marketplaces.

Sources

[5] Estee Lauder sues Walmart alleging 'despicable' sale of counterfeit beauty products