Quick Facts
- Estée Lauder filed a trademark infringement lawsuit against Walmart in federal court over alleged counterfeit beauty products sold on its marketplace
- The suit targets fake versions of Tom Ford, La Mer, Clinique, Aveda, and Estée Lauder products, with the company seeking monetary damages and court orders to stop sales
- Walmart’s marketplace now hosts over 200,000 sellers offering 420 million products, 95% of which come from third-party sellers rather than Walmart’s own inventory
Estée Lauder filed a trademark infringement lawsuit against Walmart on Monday in U.S. District Court for the Central District of California. The suit alleges that counterfeit beauty products sold through Walmart’s online marketplace violate the company’s trademarks.
The cosmetics company claims it purchased and tested multiple products on Walmart.com that used trademarks from Le Labo, La Mer, Clinique, Aveda, Tom Ford, and Estée Lauder but were determined to be fake. Products included counterfeit versions of Estée Lauder’s Advanced Night Repair serum, Le Labo fragrances, Clinique eye cream, La Mer lotion, Aveda hair brushes, and Tom Ford fragrances.
In one example, Estée Lauder shows side-by-side photos of a perfume sold by Walmart called “Intense Peach” next to a Tom Ford fragrance called “Bitter Peach.”
The company called Walmart’s conduct “extreme, outrageous, fraudulent … despicable and harmful” in the complaint. Estée Lauder claims Walmart failed to ensure only authorized merchandise reached consumers through its marketplace platform.
Walmart responded that it has “zero tolerance for counterfeit products” and will “respond appropriately with the court when we are served.”
The lawsuit comes as Walmart’s marketplace reaches record growth. The platform surpassed 200,000 active sellers for the first time, adding 44,000 new sellers in the first five months of 2025. This puts Walmart on pace for its highest seller growth year yet.
Walmart began adding premium beauty to its online marketplace in August 2024 with 20 brands and over 1,000 products. By May 2025, it expanded to 80-plus brands and more than 2,500 items.
The timing follows a CNBC investigation that discovered counterfeit beauty products on Walmart’s platform sold by fraudulent sellers using stolen business identities. After the investigation, Walmart implemented new vetting requirements for beauty and personal-care sellers in July 2025.
Estée Lauder seeks unspecified monetary damages, potentially up to three times the amount if violations are deemed intentional. The company also wants court orders to halt sales, destroy remaining inventory, and force disclosure of suppliers.
Read more: Estée Lauder sues Walmart over alleged counterfeits
