Estée Lauder sues Walmart over alleged counterfeit beauty sales

Estée Lauder Companies and several of its luxury brands have filed 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 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's website.

The companies claim the products were not authentic and argue that Walmart’s website layout, checkout system and return process could lead shoppers to believe Walmart was the seller, even when items were supplied by third-party vendors.

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According to the complaint, Walmart selects and partners with marketplace sellers, controls payments and checkout, and in many cases handles fulfillment and returns while earning fees from those sales. The lawsuit cites a prior federal case involving Vans in which a court found consumers could reasonably believe products sold on Walmart.com were sold by Walmart.

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Tom Ford is also alleging trade dress infringement tied to its Private Blend fragrance collection, claiming copycat bottles duplicated the brand’s rectangular shape, flared cap design, monochrome color scheme and signature nameplate.

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The plaintiffs are seeking unspecified monetary damages — potentially up to three times the amount if the court finds the violations were intentional — along with a court order to halt sales, destroy any remaining inventory and disclose suppliers.

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The complaint also includes claims of "vicarious trademark infringement," arguing Walmart should be held liable for third-party sellers 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 with the court when we are served."

FOX Business reached out to Estée Lauder for comment.

Reuters contributed to this report.