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Estée Lauder Companies and several of its luxury brands have introduced a federal lawsuit accusing Walmart of allowing counterfeit beauty and fragrance products to be sold through its online marketplace.
The complaint, filed Monday in the U.S. District Court for the Central District of California, alleges that knockoff versions of high-end products including Estée Lauder’s Advanced Night Repair, Le Labo’s Santal 33 and Tom Ford fragrances, among others, were listed and sold on Walmart website.
The companies claim the products were inauthentic and argue that the layout of Walmart’s website, payment system and return process could lead shoppers to believe Walmart was the seller, even when the items were supplied by third parties.
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An Estée Lauder logo at Milan Malpensa Airport in Milan, Italy, January 18, 2026. (Jakub Porzycki/NurPhoto via Getty Images/Getty Images)
According to the complaint, Walmart selects and partners with marketplace sellers, controls payment and purchasing, and in many cases handles fulfillment and returns while earning commissions on those sales. The lawsuit cites a prior federal case involving Vans in which a court found that consumers could reasonably believe that products sold on Walmart.com were sold by Walmart.
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A Walmart sign is displayed outside a Supercenter on November 18, 2024 in Miami, (Joe Raedle/Getty Images/Getty Images)
Tom Ford also alleges trade dress infringement related to his Private Blend fragrance collection, claiming that the duplicate bottles duplicated the brand’s rectangular shape, flared cap design, monochrome color scheme and signature plate.
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A couple walks past an Estee Lauder store in Kuala Lumpur. (Faris Hadziq/SOPA Images/LightRocket via Getty Images/Getty Images)
The plaintiffs are seeking unspecified monetary damages, potentially up to three times the amount if the court finds the violations were willful, along with an injunction to stop sales, destroy any remaining inventory and disclose suppliers.
| Ticker | security | last | change | % change |
|---|---|---|---|---|
| WMT | WALMART INC. | 129.14 | +2.44 |
+1.92% |
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The complaint also includes claims of “indirect trademark infringement,” arguing that Walmart should be liable for third party vendors operating on its platform.
“We are aware of the complaint and have zero tolerance for counterfeit products,” Walmart said in a statement to FOX Business. “We will respond appropriately to the court when served.”
FOX Business has reached out to Estée Lauder for comment.
Reuters contributed to this report.
