Estée Lauder Companies has won an early procedural victory in its trademark dispute with Walmart. U.S. District Judge Hernan Vera of the Central District of California refused to dismiss the suit and ruled that the cosmetics giant can pursue claims beyond the 17 products it had initially confirmed as fake.
Judge Clears Way for Discovery in Trademark Infringement Claims
Walmart argued that Estée Lauder hadn’t offered enough evidence tying the retailer to untested items sold by marketplace vendors. They stated that the case should be limited to verified counterfeits. Judge Vera called the request for partial dismissal unjustified at this stage, clearing the way for discovery across a wider range of products.
Trademark Infringement, False Designation of Origin, Trade Dress Infringement
The lawsuit was filed on February 9, 2026. It accuses Walmart of enabling trademark infringement and false designation of origin through third-party sellers on Walmart.com. The products named include Le Labo and Tom Ford fragrances, Advanced Night Repair skincare, Aveda hair tools, and La Mer and Clinique treatments.
Estée Lauder also alleges trade dress infringement. They claim that sellers copied designs such as Tom Ford’s rectangular bottles and monochrome labels. It further claims Walmart used its trademarks in search optimization tools to steer shoppers toward unauthorized listings and profit from the traffic.
Vicarious Trademark Infringement Through Third-Party Sellers
A central claim is vicarious trademark infringement. Estée Lauder argues that Walmart’s checkout, payment processing, branding, and returns services blur the line between its own sales and those of outside vendors. They allege that this leads reasonable shoppers to assume they are buying genuine products directly from Walmart.
Walmart has said it has a zero-tolerance policy on counterfeits and defended its seller-vetting procedures. Estée Lauder maintains that fakes still reach customers. With broader discovery now approved, the case could help define how much responsibility major e-commerce platforms bear for policing third-party sellers.