2024 just started and it is already time for another fashion law case. This time it is Chanel against the luxury reseller What Goes Around Comes Around (WGACA). This is what Chanel alleges WGACA has done:
- Implying affiliation through marketing and advertising
- Selling counterfeit bags with stolen serial numbers
- Selling counterfeit bags without legitimate serial numbers
- Selling display only items, and other items that were never meant for sale
When it comes to counterfeits, I’m still trying to understand why this is tricky. It should be cut and dry, you’re liable for selling counterfeit products. I won’t touch on that. Instead, I’m going to focus on the “implied affiliation” claim.
One of the things that parties have to prove in cases like this is confusion. Did the use of the Chanel’s logo lead to confusion on the consumers’ part to think there was some kind of affiliation? I don’t know how they will argue this case, but the way WGACA was introduced on Amazon’s luxury page was very Chanel heavy. In fact, I registered it as Chanel first and was confused as to how Amazon was able to convince Chanel to get on their site. It took a while to navigate through a discover that it was all through a reseller.
In addition, they might bring into consideration how often they used Chanel as promotional giveaways. and how often the primary speakers on social media are wearing blatant Chanel items. I would imagine this would be included among the examples of reasonable confusion.
Because of how much social media platforms have ballooned since the previous trial against WGACA, I will be looking to see how much this new landscape factors in to the case. Trial starts Tuesday January 9. Let’s see what happens, because the results will have ripple effects throughout the industry.
News Source:
Schulz, M. (January 8, 2024). Chanel is taking What Goes Around Comes Around to court. Here’s what to know. Vogue Business. https://www.voguebusiness.com/story/companies/chanel-is-taking-what-goes-around-comes-around-to-court-heres-what-to-know
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