Estée Lauder Sues Walmart Over Counterfeit Products
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy EL?
Source: Newsfilter
- Lawsuit Background: Estée Lauder has filed a lawsuit against Walmart in California federal court, alleging that the retailer facilitated the sale of counterfeit beauty products from brands like La Mer and Le Labo on its online marketplace, despite these products being sold by third-party sellers, which Estée Lauder describes as 'despicable' conduct.
- Product Details: The lawsuit cites counterfeit items including Estée Lauder's Advanced Night Repair serum and Clinique eye cream, with Estée Lauder claiming these products were purchased and tested, confirming their counterfeit status, highlighting Walmart's failure in product vetting.
- Market Impact: Walmart's online marketplace strategy aims to accelerate profit growth and compete with Amazon, but the presence of counterfeit products could undermine consumer trust, potentially harming Walmart's brand image and market share.
- Legal and Policy Context: The lawsuit underscores the regulatory gaps in combating counterfeit products on online marketplaces, as the Shop Safe Act, designed to enhance seller vetting, has failed to pass multiple times due to lobbying from Walmart and other platforms, reflecting ongoing challenges in the industry regarding counterfeit oversight.
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Analyst Views on EL
Wall Street analysts forecast EL stock price to rise
18 Analyst Rating
8 Buy
9 Hold
1 Sell
Moderate Buy
Current: 106.420
Low
70.00
Averages
106.76
High
130.00
Current: 106.420
Low
70.00
Averages
106.76
High
130.00
About EL
The Estee Lauder Companies Inc. is a manufacturer, marketer and seller of skin care, makeup, fragrance and hair care products. Its product categories include skin care, makeup, fragrance, hair care and others. Its products are sold in approximately 150 countries and territories under a number of brand names, including Estee Lauder, Aramis, Clinique, Lab Series, Origins, M.A.C, Bobbi Brown Cosmetics, La Mer, Aveda, Jo Malone London, Bumble and bumble, Darphin Paris, TOM FORD, Smashbox, AERIN Beauty, Le Labo, Editions de Parfums Frederic Malle, GLAMGLOW, Kilian Paris, Too Faced, Dr.Jart+, and the DECIEM family of brands, including The Ordinary and NIOD. It is a licensee for fragrances, cosmetics and/or related products for AERIN, BALMAIN, and Dr. Andrew Weil. Its skin care products include moisturizers, serums, cleansers, toners, exfoliators, facial masks, body care, sun care products and others. Its makeup products include lipsticks, lip glosses, mascaras, foundations and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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