Estée Lauder Files Federal Lawsuit Alleging Counterfeit Sales on Walmart.com

The Lawsuit and Court Filing

On February 10, 2026, Estée Lauder Companies Inc. filed a complaint against Walmart Inc. in the U.S. District Court for the Central District of California. The lawsuit alleges that counterfeit beauty products bearing Estée Lauder trademarks were sold on Walmart.com through third-party sellers participating in Walmart’s online marketplace.

The complaint names several Estée Lauder brands, including Estée Lauder, La Mer, Le Labo, Clinique, Aveda, and Tom Ford. According to the filing, Estée Lauder purchased, inspected, or tested products sold on Walmart.com and determined that certain items were not authentic. The products cited include skincare, fragrance, and beauty accessories sold using Estée Lauder trademarks.

Estée Lauder is seeking monetary damages and injunctive relief aimed at stopping the sale of the allegedly counterfeit products. The claims include trademark infringement and related violations under federal law.

Role of Third-Party Marketplace Sellers

The lawsuit does not allege that Walmart manufactured the products. Instead, it states that the items were sold by independent third-party sellers operating on Walmart’s marketplace platform.

However, the complaint asserts that Walmart played an active role in facilitating the sales. Estée Lauder alleges that Walmart allowed the listings to appear on its site, promoted them through search and advertising features, and financially benefited from the transactions. The filing further claims that consumers shopping on Walmart.com could reasonably believe Walmart itself was the seller of the products, rather than an independent third party.

Connection to Prior Reporting

The lawsuit follows investigative reporting by CNBC that examined counterfeit and fraudulent listings on Walmart.com, including beauty products sold by third-party sellers. CNBC reported that some counterfeit Estée Lauder and Clinique products were available on the platform at the time of its investigation.

Two products mentioned in that reporting were also referenced in Estée Lauder’s lawsuit. It has not been publicly confirmed whether the specific items examined by Estée Lauder are the same products previously identified by CNBC.

Walmart’s Public Position

At the time the lawsuit was filed, Walmart did not immediately respond to requests for comment from media outlets reporting on the case.

In prior public statements unrelated to this specific lawsuit, Walmart has said that trust and safety are core priorities and that it enforces policies prohibiting counterfeit and noncompliant products on its marketplace. Walmart has also stated that it removes sellers and listings found to violate those policies.

Legal Context for Online Marketplaces

U.S. courts have historically set a high threshold for holding online marketplaces liable for counterfeit goods sold by third-party sellers. A key precedent stems from a 2010 appellate ruling in a case involving Tiffany and eBay, which held that platforms are generally not liable unless they have specific knowledge of infringement and fail to act.

Estée Lauder’s lawsuit argues that Walmart’s marketplace involvement goes beyond passive hosting. Whether that argument meets the legal standard for liability will be determined through the court process.

Separately, lawmakers have introduced legislation, including the Shop Safe Act, aimed at strengthening requirements for online marketplaces to verify sellers and prevent counterfeit sales. That legislation has been introduced multiple times but has not been enacted.

What This Means for Walmart Suppliers and Sellers

The lawsuit does not allege misconduct by authorized Walmart suppliers or brand partners. However, it underscores several realities for companies operating within or alongside large online marketplaces.

Third-party marketplace activity can directly affect brand perception and consumer trust, even when brands are not involved in the sales. Categories such as beauty and personal care face heightened scrutiny due to safety and authenticity concerns. Marketplace enforcement practices continue to evolve as platforms scale their third-party ecosystems.

For Walmart suppliers and sellers, the case highlights the importance of understanding how third-party listings operate, monitoring marketplace activity, and maintaining clear authorization and brand protection controls as Walmart’s e-commerce platform continues to grow.

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