Stop selling grey market goods: Unilever’s Dermalogica sues Target

Stop selling grey market goods: Unilever’s Dermalogica sues Target

Unilever has filed a complaint in the US District Court for the Central District of California charging Target with the unauthorized sale of its Dermalogica brand and developing point of sales materials that bear its trademark, according to a report published by Fashion Law.

The Anglo-Dutch FMCG giant prevents authorized retailers from reselling product with an ‘anti-diversion provision’ but maintains that Target has, nonetheless, managed to procure product via a third party and is selling products with their authenticity holograms and serialized quality control tags removed. What’s more, the POS materials displayed by the US retailer mislead consumers into thinking the discounter is an authorized seller and contain false product claims.

Dermalogica’s suit notes that it has repeatedly alerted Target that it is not authorized to sell its products and that these grey goods are not intended for the US market and may not comply with local legislation.  

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