American Eagle Outfitters has launched a legal battle against Amazon, accusing the e-commerce giant of trademark infringement for allegedly selling “inferior quality knock-offs” of its Aerie clothing line.
The lawsuit was launched in the US District Court for the Southern District of New York on Wednesday.
It alleges Amazon used Aerie’s branding in search results to mislead customers into believing they were purchasing genuine Aerie products.
Claims of Deception and Unauthorized Use
In its complaint, American Eagle claims Amazon engaged in “flagrant, unauthorized use” of the Aerie and Offline by Aerie trademarks. It claims this was to deceive customers into thinking that the brand’s products were available on Amazon.
The lawsuit argues this tactic was used to drive traffic to Amazon’s platform and sell competing merchandise. This was despite American Eagle’s decision not to authorize the sale of Aerie products on Amazon’s site.
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The Aerie Brand and Amazon’s Alleged Actions
Founded in 1977, American Eagle launched the Aerie brand in 2006. It focuses on yoga pants, lingerie, loungewear, and other attire.
American Eagle claims it intentionally declined to allow Amazon to sell Aerie products to maintain control over its brand identity and customer experience.
However, the lawsuit alleges that Amazon has been using Aerie’s branding in its search results to mislead shoppers.
According to the complaint, searches for Aerie products on Google often direct shoppers to Amazon’s website through sponsored and organic links, suggesting that Aerie products are available there.
Clicking these links reportedly leads to an Amazon webpage displaying what American Eagle describes as “knock-offs and ‘dupes’” of Aerie items, including sweatshirts and exercise shorts.
Attempts to Address the Issue
American Eagle stated it notified Amazon about the infringing products “over a month ago.”
The company claims the offending listings were simply relabeled with misspellings of the Aerie trademarks, such as “Aeries,” “Arie,” or “Aries,” instead of being removed.
This tactic allegedly continues to deceive consumers into thinking they are purchasing official Aerie products.
The lawsuit claims:
“These ads are intended to (and do) trick customers into thinking that by clicking the provided link, they will be able to ‘Shop Aerie’ or ‘Save on Offline by Aerie’ on the ‘Official Amazon Site.”
“These statements are patently false because customers cannot shop for Aerie products on Amazon.”
Amazon’s Ongoing Battle with Counterfeits
Amazon’s third-party marketplace was launched in 2000. It allows businesses to sell their goods on its platform and has become a significant part of the company’s operations, accounting for more than half of all sales.
However, the marketplace has faced criticism and legal challenges over the years for the presence of counterfeit goods.
In 2016, Birkenstock removed its products from Amazon due to a surge in counterfeits. German automaker Daimler AG also sued that same year after discovering counterfeit Mercedes-Benz wheels being sold by third-party sellers.
Amazon has taken steps to address the issue, like forming a dedicated team to pursue legal action against counterfeiters. It has also launched tools to help brands protect their trademarks, and filing lawsuits against alleged infringers.
American Eagle’s Demands
American Eagle is seeking an injunction to stop Amazon from using its trademarks, along with financial damages for the alleged infringement.
As of now, Amazon representatives have not responded to requests for comment. The e-commerce giant has previously stated that it prohibits the sale of counterfeit goods on its platform.
