Estée Lauder Files Federal Trademark Lawsuit Alleging Walmart Sold Counterfeits

Estée Lauder Companies alleges Walmart allowed and facilitated the sale of counterfeit skincare, fragrance and beauty products on Walmart.com, targeting items from luxury and mass-market brands and asking a federal court to stop the sales and award damages.

The complaint, filed in the U.S. District Court for the Central District of California on Feb. 9, 2026, says Estée Lauder and affiliated brands purchased products from Walmart.com, inspected or tested them, and determined they were not genuine. The filing identifies Estée Lauder, Clinique, La Mer, Le Labo, Aveda and Tom Ford as among the brands whose marks were used on allegedly counterfeit listings. Specific examples cited in reporting include Estée Lauder’s Advanced Night Repair serum, Le Labo’s Santal 33, La Mer moisturizers, Clinique creams and eye cream, an Aveda hairbrush, and a Tom Ford fragrance comparison in which a Walmart listing called “Intense Peach” was shown next to Tom Ford’s “Bitter Peach” packaging.

Estée Lauder’s complaint criticizes Walmart’s marketplace oversight, saying the retailer promoted the “reputation and professionalism” of sellers while, in practice, it “does very little to ensure that only authorized and authentic products are available.” The suit states, “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 further alleges, “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.” Reporting also says the filing called Walmart’s conduct “despicable.” The complaint describes the listings as bearing marks that “are identical with, substantially indistinguishable from, or confusingly similar” to Estée Lauder trademarks.

Walmart has previously told reporters that “trust and safety are non-negotiable for us” and that the company enforces “a zero-tolerance policy for prohibited or noncompliant products.” Neither Estée Lauder nor Walmart provided an immediate new comment after the lawsuit was filed.

For Walmart employees, the case could prompt changes to how online marketplace sellers are vetted and how trust-and-safety teams prioritize enforcement. Customer service staff and front-line associates may see increased complaint volumes and return processing tied to disputed items, while loss-prevention and legal-compliance units could face tighter coordination with e-commerce operations. The suit also highlights the exposure of marketplace operations to brand litigation, which can lead to shifts in seller onboarding, verification processes and the workload for teams that moderate listings.

The filing follows prior reporting into counterfeit goods on Walmart.com and joins a broader wave of lawsuits testing marketplace liability for integrated e-commerce platforms. The immediate next steps will play out in the Central District of California, where Estée Lauder seeks monetary damages and an order barring Walmart from selling the allegedly counterfeit items. For workers, the litigation signals potential policy and procedural changes that could affect daily tasks for trust-and-safety professionals, customer service representatives and store staff handling returns and consumer inquiries.