Estée Lauder Sues Walmart Over Alleged Counterfeit Fragrances

Cosmetics giant accuses retail giant of selling knockoffs of its high-end fragrance and skincare brands

Published on Feb. 10, 2026

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Estée Lauder has sued Walmart in California federal court, alleging that the retail giant is selling counterfeit versions of Estée Lauder's high-end fragrance and skincare brands including Clinique, Tom Ford, Le Labo, La Mer, and Aveda. Estée Lauder is seeking monetary damages and a court order to block Walmart from selling the alleged counterfeits.

Why it matters

Estée Lauder's fragrance business has been growing as Gen Z shoppers flock to its luxury brands like Le Labo and Tom Ford. This lawsuit highlights the ongoing challenge of combating counterfeit goods, especially as e-commerce platforms like Walmart's expand their product offerings.

The details

According to the lawsuit, Walmart has been selling products through its website that feature identical branding to Estée Lauder's authentic fragrances and skincare items, but are in fact counterfeit versions. Estée Lauder alleges that Walmart does 'very little to ensure that only authorised and authentic products are available' on its platform, leading to the sale of knockoff goods that are likely to cause consumer confusion.

  • Estée Lauder filed the lawsuit in California federal court on Monday, February 11, 2026.

The players

Estée Lauder

A major American cosmetics company that owns high-end fragrance and skincare brands including Clinique, Tom Ford, Le Labo, La Mer, and Aveda.

Walmart

The world's largest retailer, based in Bentonville, Arkansas, which has expanded its e-commerce platform to become the first retailer to hit $1 trillion in market valuation.

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What’s next

Estée Lauder is seeking an unspecified amount of monetary damages and a court order blocking Walmart from selling the alleged counterfeit products.

The takeaway

This lawsuit highlights the ongoing challenge brands face in combating the proliferation of counterfeit goods, especially as e-commerce platforms expand their product offerings. It underscores the importance for retailers to have robust systems in place to ensure only authentic products are sold to consumers.