Wal-Mart to Pay Fendi Over Fake Bags

    [FONT=times new roman,times,serif][FONT=times new roman,times,serif]June 7, 2007; Page A3[/FONT]
    Wal-Mart Stores Inc. has acknowledged in a legal settlement that it sold fake Fendi handbags for as much as $525 each.
    The settlement, made public in a statement yesterday, highlights how widespread the sale of fake luxury goods has become, as fashion brands expand world-wide and counterfeiters become global players as well.
    Wal-Mart settled after Fendi, a high-end Italian fashion brand belonging to French luxury-goods titan LVMH Moët Hennessy Louis Vuitton SA, alleged in a lawsuit last June that Wal-Mart's Sam's Club warehouse-club division sold millions of dollars worth of bogus bags and other merchandise under Fendi's label. Wal-Mart, based in Bentonville, Ark., is the world's largest retailer in terms of sales.
    According to a statement released by Fendi and Sam's Club, the Wal-Mart unit pledged in the settlement to provide refunds for any customers who bought fake merchandise. Sam's Club is also paying Fendi a confidential amount as part of the settlement. Sam's Club removed Fendi-labeled products from its stores last year amid the dispute.
    "We have programs in place to protect the intellectual property rights of others," Sam's Club Chief Executive Doug McMillon said. "However, during this litigation, Fendi provided us with information that the 12 types of bags and wallets specifically listed in its complaint were not genuine. We accept this information."
    Fendi CEO Michael Burke said in an interview that Wal-Mart was cooperative in addressing the problem of counterfeits being sold in its stores. "I'm very happy that we came to this result," he said.
    Sam's Club spokeswoman Susan Koehler declined to divulge details of Sam's Club's investigation into the matter. She said Sam's Club is "no longer doing business with the companies that provided us the goods."
    The squabble is among the latest of many between producers of exclusive fashion merchandise and the mass-merchant retailers striving to offer their customers such products. Last year, Coach Inc. withdrew a lawsuit alleging that Target Corp. sold counterfeit Coach purses. Target said it purchased the purses at a liquidation sale of a major department-store chain.
    Fendi filed the suit against Wal-Mart last June in U.S. District Court in Manhattan. According to the complaint, which was seen by The Wall Street Journal, a Sam's Club in Torrance, Calif., was selling a black handbag for $525, compared with $900 for the genuine Fendi product.
    [FONT=times new roman,times,serif]--Judy Lam contributed to this article.[/FONT]
  2. I just am sitting here trying to figure out why I would deprive myself of the pleasure of buying a Fendi at Saks or Nordstroms, by throwing one in my shopping cart next to the toilet paper and garden hoses at Sams? The feeling would just not be the same.......:popcorn:
  3. I would probably put mine on top of the 5 gallon jugs of ketchup. :roflmfao:
  4. Paying over 500$ for a fendi bag & doing it at the same time while shopping for your families meat does not make sense! Why not just pay a little extra to actually walk into a department store where the selection is nicer and the bags haven't been thrown on the shevles by the same people who throw the tires on the shelves at Sams.......
  5. Compass Rose -- you said it all!!! We have a local jeweler here in my little pueblo who sells Cartier watches. But when I buy a Cartier, I'll go to Manhattan and walk into the 5th Ave. store and get the royal treatment.
  6. If I'm going to spend mucho bucks on a Fendi bag, I don't think I want the world to see me with it in a plastic Walmart shopping bag. That's just me.
  7. I'm not a member of Sam's club but Costco sells most of 'hi-end' (if they are, which is questionable now) bags via its website. I don't see why online shopping at costco.com is worse than at any other etailer (even better because of Costco's wonderful return policy).
  8. I guess it just depends on how much you have to spend, but a $400 difference is by no means insubstantial--just think, you could get a cute HH bag for that! I live in the city so I don't shop at any of these stores, but I can see how someone might be in a Walmart, see a Fendi for $500 and go, "Wow, what a deal--I can't resist!"

    What's sad is that plenty of people won't get news that these were fake, so they'll be walking around all content with their "designer" bag... since Sam's requires membership, the settlement should have stipulated that they send notices to all their members...
  9. Yet another reason not to shop at a Wal-Mart affiliated store--fake bags!
  10. Oy, the evils of Walmart!

    Do you think Costco customers are safe from this happening to them?

    Poor scammed people!
  11. I once bought a Fendi wallet from Sam's Club. After comparing it to pics of several real Fendi wallets, I found some discrepancies that made me return it. If indeed it was fake, it was a pretty good fake. The differences were so minor that only a very eagle-eyed person would notice. Now I notice the highest end bag in the glass cases at Sam's are a couple of pathetic looking Kate Spades and the occasional Coach. Most of the bags are Maxx New York (which seem pretty nice for being lower end brand) and Paris (GAG!) Hilton!

    Lesson learned: Stick with authorized dealers even if it means paying full price.
  12. Awww c'mon. You can put it next to the 100 pound dog food, on the bottom of the cart......:roflmfao: