Overview: The Gucci luxury brand sues three major retailers for selling counterfeit versions of its products. How might consumer surveys be used in this lawsuit?
Gucci Counterfeits and Claims
Gucci, an iconic Italian luxury brand, filed three lawsuits November 21 in the U.S. District Court for the Southern District of New York against Lord & Taylor, a luxury retailer (Gucci America Inc. v. Lord & Taylor Ecomm LLC, Case No. 1:23-cv-10239); Sam’s Club, a discount bulk retailer; and Century 21, an off-price retailer in New York. Gucci claims that the retailers purchased products bearing the Gucci trademark that are not authentic. In the complaint, Gucci asserts that it “takes pains to ensure the quality of its products by monitoring their production and distribution,” that this practice has given it “a reputation for providing the highest-quality products under the GUCCI Marks,” and that “consumers have come to expect that products bearing the GUCCI Marks are of the highest quality and workmanship.” The claims in the suits include trademark counterfeiting, infringement of registered trademarks, unfair competition, trademark dilution and false designation.
These counterfeit designer bags were not necessarily a bargain. Lord & Taylor, Sam’s Club, and Century 21 marketed these bags on their websites for upwards of $2400, the same price range as the authentic bags. Counsel for Lord & Taylor admitted that the company was aware that the bags were inauthentic. Century 21 responded that it believed that the bags were authentic, but removed the remaining inventory. Sam’s Club similarly removed inventory.
Likelihood of Confusion, Likelihood of Dilution, and Consumer Surveys in Counterfeit Claims
There is a lot in these bags claims to unpack, but consumer surveys could be useful. Gucci may use likelihood of confusion surveys as evidence to support its trademark infringement allegations. In addition, it might consider a trademark dilution survey, because two of these retailers are not established as retailers of luxury goods, and the Gucci mark may be diluted by association with them. If a group of consumers were to bring an action against retailers for false and deceptive advertising, for the sale of counterfeit products, they too might enlist consumer survey experts and evidence for likelihood of confusion and conjoint survey evidence to help determine the price premium they paid for these products.
The experts at MMR Strategy Group conduct reliable consumer survey research for use in marketing, litigation, and claim substantiation. Contact MMR to discuss your case and your options.