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Estee Lauder sues Walmart, alleging sale of counterfeits

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Estee Lauder sues Walmart, alleging sale of counterfeits

Walmart Inc. signage during the company’s listing at the Nasdaq MarketSite in New York, US, on Tuesday, Dec. 9, 2025.

Michael Nagle | Bloomberg | Getty Images

Estee Lauder sued Walmart in California federal court over allegations the big-box retailer sold counterfeit beauty products on its website and didn’t do enough to ensure only authorized and authentic merchandise was offered to consumers. 

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Estee Lauder said it purchased, inspected or tested a number of products sold on Walmart.com that used the Le Labo, La Mer, Clinique, Aveda, Tom Ford and Estee Lauder trademarks but were determined to be fakes, according to the suit, filed Monday.

The products include counterfeit versions of Estee Lauder’s Advanced Night Repair serum, a Le Labo fragrance, a Clinique eye cream, a La Mer lotion, an Aveda hair brush and a Tom Ford fragrance. 

xemplars of the Estée Lauder Accused Products

U.S. District Court Complaint

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It’s unclear when Estee Lauder bought and tested the products but the suit comes several months after CNBC published an investigation into counterfeit beauty products and fraud on Walmart.com.

Two of the counterfeit products cited in CNBC’s investigation — Estee Lauder Advanced Night Repair serum and Clinique Smart Clinical Repair Wrinkle Correcting Eye Cream — were also mentioned in Estee Lauder’s lawsuit. It’s unclear if the products cited in the suit are the same counterfeits CNBC provided to Estee Lauder. 

Estee Lauder and Walmart didn’t immediately return requests for comment. 

Exemplars of the Clinique Accused Products

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U.S. District Court Complaint

While the products were sold by third-party sellers on Walmart’s online marketplace, Estee Lauder said the company played an active role in facilitating those sales to shoppers in its suit. The legacy beauty company called Walmart’s conduct “extreme, outrageous, fraudulent … despicable and harmful.” 

The counterfeit products were promoted and advertised to shoppers on the platform, Estee Lauder’s trademarks were used in search engine optimization tools to drive traffic to the listings and Walmart profited from the sales, the complaint stated. 

Further, “a person shopping on Walmart.com would have reasonably believed that Walmart, and not third-party sellers, was the seller” of the item, which could have caused confusion among shoppers, the complaint states. 

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At the heart of CNBC’s investigation into Walmart’s online marketplace was the steps the company took, or didn’t take, to vet its third-party sellers and the products they were offering to prevent fraud and the sale of fakes on the platform. 

Exemplars of the La Mer Accused Products.

U.S. District Court Complaint

In its complaint, Estee Lauder said Walmart promoted the “reputation and professionalism” of the sellers permitted to operate on the platform but said the retailer actually does “very little to ensure that only authorized and authentic products are available” for sale. 

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“This is readily apparent given the [counterfeits] were permitted to be sold on Defendants’ website despite their stated careful selection process in who they choose as a Marketplace seller/partner,” the complaint states. “Accordingly, Defendants know or had reason to know that the sellers they partnered with and ‘regularly review[ed]’ were selling products which infringe upon the Estée Lauder Marks.” 

Walmart’s online marketplace has become a key part of its strategy to grow profit faster than sales and better compete against its longtime rival, Amazon. The rapid growth of the online platform helped fuel Walmart’s ascent to a $1 trillion market cap last week, putting it in an exclusive club made up almost entirely of technology companies. 

However, the strategy has come with risks, CNBC’s investigation revealed. Offering counterfeit, potentially dangerous, products to shoppers through third-party sellers on the marketplace opens Walmart up to liability and could erode the customer trust at the core of its brand.

Exemplars of the Le Labo Accused Products

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U.S. District Court Complaint

Ever since a 2010 court ruling that arose after Tiffany sued eBay over counterfeit products on the platform, it can be tough for brands to hold platforms accountable for their role in selling counterfeit goods. Sometimes, they avoid lawsuits unless the conduct is extreme or particularly flagrant, experts previously told CNBC.

The Shop Safe Act, a bipartisan federal bill that aims to curb the sale of fakes on online marketplaces, is designed to address some of the issues posed by the Tiffany v. eBay ruling by incentivizing platforms to better vet sellers and the products they’re offering. When platforms comply with certain anti-counterfeiting measures, they could be shielded from liability if a seller offers a fake product. 

Brands widely supported the legislation, but it has so far failed to pass at least three times. That’s partially because Walmart and other online marketplaces like Amazon, Etsy and eBay have lobbied against aspects of it, two U.S. Senate aides, who spoke on the condition of anonymity because the discussions were private, previously told CNBC. 

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Pegasystems shares fall 5% as net income declines YoY, despite better-than-expected Q4

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Pegasystems shares fall 5% as net income declines YoY, despite better-than-expected Q4

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Tyson Foods sees long road before Beef business recovers

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Wrapped helps Spotify add users despite artists criticism over fees

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It highlighted its “Spotify Wrapped” feature for engaging users.

“Our 11th annual Wrapped was bigger, bolder and more layered than ever, celebrating fans, artists, creators and authors around the world,” it said in its results. “Wrapped had more than 300 million engaged users and more than 630 million shares on social media globally in 56 languages”.

Chief executive Gustav Söderström said the firm considered itself the research and development department of the music industry, by focussing on new developments in audio, such as adding video to podcasts, and embracing music made by artificial intelligence (AI).

“Our job is to understand new technologies quickly and capture their potential, which we’ve done time and again,” he said. “The entire industry stands to benefit from this [AI] paradigm shift but we believe those who embrace this change and move fast, will benefit the most.”

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But the latest revenue figures come as a heated debate continues about how much money artists and songwriters receive in royalties. Various artists boycotted a Spotify party in 2025, and Taylor Swift famously refused to put her work on the platform for three years because the platform didn’t pay enough.

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Who Is Buying UK Shops in 2025

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With today marking three weeks since Liz Truss was appointed the UK Prime Minister has revealed that despite consumers reduced spending power in the wake of record inflation and the energy crisis, independent retailers are having to rely on the support of consumers and their local community

Physical shops are still very much in demand in the UK.But who is buying shops in 2025?

Read on as we explore who is buying UK shops in 2025.

Big Companies and Investment Funds

New research from BusinessesForSale.com states that big companies may buy multiple shops that have the potential to be financially profitable. And in some cases, they may be willing to invest in one established shop. These buyers include private equity firms, and these groups may be seeking to improve shops through operational overhauls. Often, private equity firms are aiming to see high rental income and shop growth within a set timeframe. They’ll look for business sales in the UK that can meet their financial goals.

New Buyers

Not every shop buyer already has a portfolio of businesses under their belt. New buyers could be individuals making the transition to ownership roles or younger buyers ready to start their journey. New buyers may find it more difficult to secure financing since they don’t have a track record of success. They’ll need to seek out smaller stores, including bakeries or restaurants, that don’t require a lot of major repairs. And new owners will want to make sure they’re clear about lease payments. Not knowing payment terms can lead to unpleasant financial surprises.

Franchisee Buyers

Franchisee buyers run a shop using a known brand and business model. Working within a franchise scenario can reduce stress, as owners won’t need to revamp a business from scratch. Instead, they’ll have an established system that already appeals to customers. Franchisees should expect to pay some fees for this level of convenience. But those costs also afford them training and advertising opportunities provided by the franchise.

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Buyouts from Staff Members

It’s not always outside individuals buying shops in the UK. Sometimes, staff members connected to a shop will choose to purchase it as part of an employee buyout. Staff members will be familiar with the nuances of the given business and know many of the internal business strategies. And, as a result, they’ll be positioned well to operate it effectively. Even so, staff members should be prepared to work with landlords and shore up the money needed to pay the lease. All buyers should be prepared for fit-out liabilities and landlord demands, too. For staff, buying a shop from an owner isn’t always as easy as it seems.

Buying UK Shops in 2025

Buying UK shops can be an invigorating and lucrative experience. And the people doing the buying range from established private equity firms to new buyers seeking their first business opportunities. Working within a franchise system can take some pressure off buyers. And staff members with longstanding connections to a shop may have an advantage over new buyers without existing connections. Ultimately, buyers in the UK should survey the options and choose businesses that align with their financial status and goals.

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Nektar Therapeutics (NKTR) Discusses 36-Week Maintenance Results From Phase 2b REZOLVE-AD Study in Atopic Dermatitis – Slideshow

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript

Nektar Therapeutics (NKTR) Discusses 36-Week Maintenance Results From Phase 2b REZOLVE-AD Study in Atopic Dermatitis – Slideshow

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Retail sales were unexpectedly flat in December as consumers pulled back, raising questions about a broader economic slowdown.

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Bristol sewing company destroyed by ‘devastating’ fire launches fundraiser

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The studio was engulphed when a fire broke out at Broadmead Industrial Estate last month

Chantal Preston and Ruby Baker's sewing company was destroyed in a fire last month

Chantal Preston and Ruby Baker’s sewing company was destroyed in a fire last month(Image: RC Designs)

A pair of Bristol friends whose sewing company was destroyed in a fire last month are raising funds to relaunch the business. Chantal Preston, 35, and Ruby Baker, 25, established RC Bespoke Designs early last year, working from a studio in Keynsham.

The duo joined forces after meeting through Bristol’s Narrowboat community, and set up on Broadmead Industrial Estate where they made bespoke soft furnishings.

They had already secured work with a number of local businesses, including landing their first large-scale job – an awning for the marina – and were preparing a big social media launch when disaster struck.

On January 19, a fire broke out on the industrial estate and in less than an hour, the flames had torn through multiple buildings, including Chantal and Ruby’s offices.

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Twelve Avon Fire and Rescue engines were called to the scene but the rented studio and all its contents were destroyed. It is still not known how the fire was started. One person was taken to hospital at the time, but nobody was badly hurt, according to Chantal.

The fire at the industrial estate in Keynsham in January

The fire at the industrial estate in Keynsham in January(Image: Handout)

“We are incredibly grateful that no one was seriously hurt, but the loss has been overwhelming,” she said.

“This studio wasn’t just a business, it was our livelihood, our creative home and a place we poured our time, money and heart into. Our studio was an attic space…the roof and second floor no longer exist. It didn’t stand a chance.”

Chantal and Ruby lost years worth of tools, stock and client’s work which was ready for collecting, as well as personal life storage.

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“It was all gone in an instant,” she said.

The pair have now set up a Gofundme page in the hope of raising enough money to get back on their feet.

“We desperately need the help of our community,” said Chantal. “Our work is impossible without tools and a space to work.”

Chantal and Ruby have been provided with workspace for three months for free, but still need to restock tools and equipment including a pattern master; thread; fabric; iron; shelving; storage; tables for sewing machines; a large table for cutting fabric; metre rule; rotary cutter; adjustable chairs; and a cutting board.

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“If anyone could spare a moment to check out and share our fundraiser on GoFundMe it would mean the world,” added Chantal. “Small businesses have to fight really hard to come back from losses of such devastation, and oftentimes don’t succeed alone, especially in this crazy climate.

“We also would welcome any haberdashery tools, or machines, that people may be selling cheaply, or throwing out. We’d love to give them a new home.

“Thank you for supporting us during one of the most devastating moments of our journey. We can’t wait to rebuild and come back stronger.”

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