By CHRISTINA PASSARIELLO and KRIS HUDSON
[FONT=times new roman,times,serif][FONT=times new roman,times,serif]June 7, 2007; Page A3[/FONT]
[/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][FONT=times new roman,times,serif]June 7, 2007; Page A3[/FONT]
[/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]
