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Legal issues of beauty brands

November 23, 2018

 

Recently, some famous beauty brands have been involved in legal issues. Specifically, Dermalogica and L’Oréal, the two big names of beauty industry have filed lawsuit against Target and Drunk Elephant respectively for illegal business operation.

Dermalogica and Target

In the California District Court, Target is alleged of selling unauthorized products on e-commerce site and in California stores last autumn by Dermalogica. According to Dermalogica, Target is not the retailer which is authorized to sell this brand’s products. In addition, the mass retailer is also charged to sell grey market goods, which are manufactured in other countries and imported into the US but sold without the consent of trademark owner.

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Unilever beauty brand, Dermalogica has sued Target for selling unauthorized goods / Ph: Pinterest

Dermalogica adds that although Target has been notified at least 3 times that they are not allowed to sell products having trademark of Dermalogica, this mass retailer still continues to stock those goods. Unilever also affirms that Target has been trading counterfeit, falsely marketed or expired products.

L’Oréal and Drunk Elephant

In Texas Western District court, owner of Skinceuticals, L’Oréal USA Creative LLC has sued their indie competitor, Drunk Elephant for patent infringement on a form of vitamin C, L-Ascorbic acid. L’Oréal believes that the invention of C-Firma Day Serum is a “competitive advantage” of their products.

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Patent infringement is needed to be seriously considered to avoid illegal operation in each company / Ph: Smallbusiness.com

Moreover, although Drunk Elephant, a top-growing skincare brand has known about the infringement for more than one year, this brand has continued to break the law and sell the product. As a result, L’Oréal asks the Texas Western District court for their suffered damages from Drunk Elephant’s violation.

Law violation has seriously affected the prestige and profitability of the brands. Therefore, companies need to scrutinize the legal issues in their operation to avoid unexpected problems.

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