Estée Lauder Sues Walmart Over Alleged Counterfeit Products | Tom Ford, La Mer & More

Estée Lauder Accuses Walmart of Selling Counterfeit Beauty Products

Estée Lauder Companies filed a lawsuit against Walmart on Monday, alleging the retail giant sold counterfeit versions of its popular beauty and personal care products through its online marketplace, Walmart.com. The suit claims that Walmart knowingly allowed the sale of fake items, infringing on Estée Lauder’s trademarks and potentially misleading consumers.

The lawsuit, filed in the U.S. District Court for the Central District of California, names Estée Lauder, Le Labo, Tom Ford, Clinique, La Mer, and Aveda as plaintiffs. Estée Lauder alleges that the counterfeit products are “identical with, substantially indistinguishable from, or confusingly similar” to the genuine articles bearing its trademarks.

According to the complaint, Estée Lauder purchased and tested some of the products sold on Walmart.com and determined they were not authentic. The company cited a specific example: a perfume sold by Walmart labeled “Intense Peach” alongside Tom Ford’s “Bitter Peach” fragrance, both packaged in orange containers. Estée Lauder asserts the similarity is a deliberate attempt to confuse customers.

The lawsuit further alleges that Walmart utilizes Estée Lauder’s trademarks in its search engine optimization (SEO) tools to drive traffic to the allegedly counterfeit products listed on its marketplace. This practice, according to the suit, demonstrates Walmart’s awareness of the infringing activity and its intent to profit from it.

Estée Lauder contends that Walmart does “very little” to ensure the authenticity of products sold on its website. The complaint details specific products allegedly sold as counterfeits, including Aveda hairbrushes, Clinique skin creams, La Mer lotions and moisturizers, Le Labo fragrances, and Tom Ford fragrances.

This legal action comes amid a broader concern regarding the proliferation of counterfeit beauty products online. A 2023 report by Allure highlighted the involvement of organized crime in the production and distribution of fake cosmetics, often originating in China. Estée Lauder itself has a dedicated anti-counterfeiting unit – comprised of 24 people – focused on identifying and combating the sale of fake products, particularly those of its M.A.C. Brand, due to its easily replicated packaging.

Beyond the immediate issue of counterfeit products, Estée Lauder is also currently facing separate legal challenges. According to a ruling in early April 2025, the company must address a lawsuit accusing it of defrauding shareholders by concealing its reliance on gray-market sales in China. A Reuters report from March 31, 2025, details a legal challenge related to the company’s sales practices in China, where its market share reportedly decreased by 1 point in the fourth quarter of 2024, falling to 23%.

Estée Lauder is seeking monetary damages and a court order preventing Walmart from continuing to sell the allegedly counterfeit products, as well as any other items bearing its trademarks. Representatives for both Estée Lauder and Walmart did not immediately respond to requests for comment regarding the current lawsuit.