Estee Lauder initiated legal action against Walmart on Monday in a California federal court, alleging the retail giant sold counterfeit fragrances and skin care products through its online platform. The complaint names a set of prestige brands under Estee Lauder's portfolio - including Clinique, Tom Ford and Le Labo - and asserts that products marketed on Walmart's website bore branding identical to those authentic lines.
According to the filing, Walmart offered purported knockoffs that used the same identifying marks as Tom Ford and Le Labo fragrances, Clinique and La Mer skin creams, and Aveda hair brushes. Estee Lauder is asking the court for an unspecified amount in monetary damages and for injunctive relief that would bar Walmart from continuing to list and sell the allegedly counterfeit items.
Representatives for Walmart had not immediately replied to a request for comment on Tuesday. Estee Lauder spokespeople and its attorneys also did not respond to inquiries, the complaint said.
The complaint charges Walmart with a range of claims tied to the contested listings, including trademark infringement, counterfeiting and false designation of origin. Estee Lauder contends that Walmart performs "very little to ensure that only authorized and authentic products are available" through its website, a shortfall that the company argues has resulted in the online marketplace offering knockoffs likely to cause consumer confusion.
Estee Lauder noted in the complaint that its fragrance business has expanded in recent periods, in part driven by interest from younger shoppers in brands such as Le Labo and Tom Ford. The company framed the alleged availability of counterfeit goods on Walmart's site as a threat to consumers and to the distinctiveness of its branded products.
The lawsuit also referenced Walmart's broader e-commerce growth. The retailer's expansion online has been a factor in reaching a milestone earlier this month when it became the first retailer to attain a $1 trillion market valuation, the complaint observed.
In addition to its legal claims against Walmart, the filing and related public material include a reference to third-party investment research that evaluates Estee Lauder (ticker: EL). That material describes an AI-driven analysis that compares EL against many companies using a broad set of financial metrics and cites historical examples of stock picks that produced large returns, though the lawsuit itself centers on trademark and counterfeiting allegations.
Contextual note - The complaint centers on product listings and branding on Walmart's website and does not include additional factual claims beyond those set out in the filing.