Estée Lauder Claims Walmart Permits Online Sales of Counterfeit Luxury Beauty Products

Estée Lauder Companies, along with several of its luxury brands, has initiated a federal lawsuit against Walmart. The lawsuit accuses the retail giant of permitting counterfeit beauty and fragrance products to be sold through its online marketplace.

Filed on Monday in the U.S. District Court for the Central District of California, the complaint alleges that fake versions of premium products—such as Estée Lauder’s Advanced Night Repair, Le Labo’s Santal 33, and various Tom Ford fragrances—were listed and sold on Walmart’s website.

The plaintiffs contend that these products are not authentic and argue that Walmart’s website design, checkout system, and return process could mislead consumers into believing that Walmart itself is the seller, even when items are provided by third-party vendors.

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Estée Lauder logo is seen at Milan Malpensa Airport in Milan, Italy on January 18, 2026. (Jakub Porzycki/NurPhoto via Getty Images / Getty Images)

The lawsuit claims that Walmart selects and collaborates with marketplace sellers, manages payments and checkout, and often handles fulfillment and returns while profiting from these sales. It references a previous federal case involving Vans, where a court determined that consumers could reasonably assume products sold on Walmart.com were sold by Walmart itself.

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A Walmart sign is displayed outside a Supercenter on November 18, 2024 in Miami, Florida. Walmart is set to report its third-quarter results on Tuesday, Nov. 19th. (Joe Raedle/Getty Images / Getty Images)

Additionally, Tom Ford is alleging trade dress infringement related to its Private Blend fragrance collection, claiming that counterfeit bottles mimic the brand’s distinctive rectangular shape, flared cap design, monochrome color scheme, and signature nameplate.

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A couple walks by an Estée Lauder store in Kuala Lumpur. (Faris Hadziq/SOPA Images/LightRocket via Getty Images / Getty Images)

The plaintiffs are seeking unspecified monetary damages, which could potentially amount to three times the damages if the court finds the violations were intentional. They are also requesting a court order to cease sales, destroy any remaining counterfeit inventory, and disclose the suppliers involved.

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The complaint also includes claims of “vicarious trademark infringement,” asserting that Walmart should be held accountable for the actions of third-party sellers operating on its platform.

“We are aware of the complaint and have zero tolerance for counterfeit products,” Walmart stated in a response to FOX Business. “We will respond appropriately with the court when we are served.”

FOX Business has reached out to Estée Lauder for further comment.

Reuters contributed to this report.

Estée Lauder Companies, along with several of its luxury brands, has initiated a federal lawsuit against Walmart. The lawsuit accuses the retail giant of permitting counterfeit beauty and fragrance products to be sold through its online marketplace.

Filed on Monday in the U.S. District Court for the Central District of California, the complaint alleges that fake versions of premium products—such as Estée Lauder’s Advanced Night Repair, Le Labo’s Santal 33, and various Tom Ford fragrances—were listed and sold on Walmart’s website.

The plaintiffs contend that these products are not authentic and argue that Walmart’s website design, checkout system, and return process could mislead consumers into believing that Walmart itself is the seller, even when items are provided by third-party vendors.

FORMER STARBUCKS EXEC SAYS SHE WAS FIRED AFTER RAISING CONCERNS OVER MAGGOTS, SAFETY: LAWSUIT

Estée Lauder logo is seen at Milan Malpensa Airport in Milan, Italy on January 18, 2026. (Jakub Porzycki/NurPhoto via Getty Images / Getty Images)

The lawsuit claims that Walmart selects and collaborates with marketplace sellers, manages payments and checkout, and often handles fulfillment and returns while profiting from these sales. It references a previous federal case involving Vans, where a court determined that consumers could reasonably assume products sold on Walmart.com were sold by Walmart itself.

WALMART BOOSTS PAY POTENTIAL FOR SOME PHARMACY STAFF, COLLEGE DEGREE NOT REQUIRED

A Walmart sign is displayed outside a Supercenter on November 18, 2024 in Miami, Florida. Walmart is set to report its third-quarter results on Tuesday, Nov. 19th. (Joe Raedle/Getty Images / Getty Images)

Additionally, Tom Ford is alleging trade dress infringement related to its Private Blend fragrance collection, claiming that counterfeit bottles mimic the brand’s distinctive rectangular shape, flared cap design, monochrome color scheme, and signature nameplate.

SOME GIFT CARDS SOLD AT COSTCO ARE NOW WORTHLESS

A couple walks by an Estée Lauder store in Kuala Lumpur. (Faris Hadziq/SOPA Images/LightRocket via Getty Images / Getty Images)

The plaintiffs are seeking unspecified monetary damages, which could potentially amount to three times the damages if the court finds the violations were intentional. They are also requesting a court order to cease sales, destroy any remaining counterfeit inventory, and disclose the suppliers involved.

CLICK HERE TO GET FOX BUSINESS ON THE GO

The complaint also includes claims of “vicarious trademark infringement,” asserting that Walmart should be held accountable for the actions of third-party sellers operating on its platform.

“We are aware of the complaint and have zero tolerance for counterfeit products,” Walmart stated in a response to FOX Business. “We will respond appropriately with the court when we are served.”

FOX Business has reached out to Estée Lauder for further comment.

Reuters contributed to this report.