Estée Lauder’s Expanded Counterfeit Beauty Lawsuit against Walmart Gets Court Approval
A federal judge has granted the Estée Lauder Companies permission to proceed with, and notably expand, its high-stakes trademark lawsuit against retail behemoth Walmart. The lawsuit pertains to the alleged sale of counterfeit luxury beauty and fragrance products on Walmart.com. This development was confirmed this week by Global Cosmetics News.
The legal skirmish initiated on February 9, 2026, when Estée Lauder lodged a lawsuit in the U.S. District Court for the Central District of California. The beauty conglomerate accused Walmart of enabling the widespread sale of counterfeit goods from brands such as La Mer, Le Labo, Clinique, Aveda, Tom Ford, and Estée Lauder itself. Estée Lauder alleges that it purchased, inspected, and tested products from Walmart.com, confirming their inauthenticity.
Among the most severe allegations are claims that third-party sellers facilitated by Walmart replicated Tom Ford’s signature rectangular perfume bottle design and monochrome labels, constituting trade dress infringement. Furthermore, Estée Lauder accused Walmart of actively promoting these counterfeit listings via its search and advertising features, thereby profiting from the transactions.
With the court now allowing broader discovery, legal pundits suggest that this case could establish significant precedents. These precedents could determine the extent of responsibility large e-commerce platforms must bear for regulating their third-party marketplaces. Despite maintaining a stated zero-tolerance policy on counterfeit goods, Walmart finds itself in the crosshairs. Estée Lauder is seeking unspecified monetary damages, injunctive relief, the destruction of counterfeit inventory, and the disclosure of suppliers.
Source: Global Cosmetics News — Estée Lauder Cleared to Expand Walmart Lawsuit