THE WHAT? The Estée Lauder Companies has been cleared to proceed with and expand its trademark lawsuit against Walmart over allegedly counterfeit beauty and fragrance products sold by third-party vendors on Walmart.com.
THE DETAILS US District Judge Hernan Vera denied Walmart’s attempt to limit the case to 17 products that Estée Lauder had specifically tested and identified as counterfeit, allowing the cosmetics group to pursue discovery covering a broader range of allegedly non-genuine goods. Filed in February 2026, the lawsuit concerns products carrying brands including Estée Lauder, Tom Ford, Le Labo, Clinique, La Mer and Aveda. Estée Lauder alleges trademark and trade dress infringement and argues that Walmart’s marketplace infrastructure, including its checkout, payment, branding and returns systems, could lead consumers to believe third-party products are being sold directly by Walmart. Walmart maintains a zero-tolerance policy towards counterfeit goods and has defended its marketplace controls.
THE WHY? The case raises broader questions over the responsibility of major online marketplaces for counterfeit cosmetics sold by third-party vendors, as prestige beauty groups seek greater protection of their brands, product designs and distribution channels in e-commerce.
Source: Stocktwits
