in the news (walmart gets sued by fendi )

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  1. Fendi sues Wal-Mart Over Sales of Fake Handbags
    Jun 9, 2006 — NEW YORK (Reuters) - Italian fashion group Fendi S.R.L. sued Wal-Mart Stores Inc. <WMT.N> in U.S. federal court on Friday, accusing the world's largest retailer of selling counterfeit handbags and passing them off as genuine at its Sam's Club warehouse stores.

    Sam's Club stores in California, New York, Florida and other states sold knock off handbags, wallets and key chains that were identified as "genuine" Fendi products, according to the lawsuit filed in U.S. District Court in Manhattan.

    The suit by Fendi said that Wal-Mart has never purchased its products and never asked Fendi if any of the items bearing its trademark were genuine.

    Fendi products are typically sold at high-end department stores like Neiman Marcus and Saks Fifth Avenue in the United States and Fendi boutiques all over the world.

    Wal-Mart said late on Friday that it had not seen the complaint and therefore could not comment.

    In one example cited in the lawsuit, a black handbag bearing Fendi's trademark logo was offered for sale in a Sam's Club store in Miami for $508.25, 45 percent less than the retail price of $930 for a genuine Fendi bag.

    Fendi, a unit of French luxury goods maker LVMH Moet Hennessy Louis Vuitton <LVMH.PA> said in the suit that Wal-Mart has made millions of dollars selling the counterfeit goods.

    Fendi is seeking unspecified damages and asked that the handbags and other illegal Fendi merchandise be destroyed.

    Wal-Mart is based in Bentonville, Ark.

    Sam's Club stores, which sell everything from bulk groceries to office supplies, recently said it would ratchet up competition with rival Costco Wholesale Corp. <COST.O> by selling more luxury goods like fine wines and diamonds.

    Copyright 2006 Reuters News Service. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
  2. I saw this on cnn yesterday and for some odd reason it makes me feel really sorry for walmart - like they were duped. They obviously wouldn't purposely sell fakes, would they????
  3. oh don't feel sorry for walmart - please believe that thier profit margins are MUCH higher than fendi!! I am sure it is worse PR than it is a monetary hit...
  4. I know, Im just in a soppy mood today, feeling sorry for multi millionaires when I don't have anything in my checking account... I bet walmart doesn't feel sorry for me!!!
  5. It will be very interesting to see how this all turns out. I'm going to be watching this one very closely.

    Shoegalabama - I love that line about WM not feeling sorry for you - OH SO TRUE!!!
  6. This is a triple post of the same topic.
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