Chanel Wins $4M in Legal Battle Against Vintage Reseller Over Trademark Infringement
A legal battle between luxury fashion house Chanel and vintage boutique What Goes Around Comes Around (WGACA) has reached a significant milestone. A New York federal jury awarded Chanel $4 million in damages, ruling that WGACA engaged in false advertising and unfair competition. The case, which began in 2018, has implications for the resale industry and how brands protect their trademarks.
Chanel accused WGACA of selling counterfeit products and misleading customers into thinking the companies have a formal relationship. The jury agreed, finding that WGACA acted with 'reckless disregard' in using Chanel's trademarks and engaging in deceptive practices. WGACA used Chanel or Coco Chanel hashtags to advertise its products on social media, infringing on Chanel's trademarks.
The dispute highlights the legal challenges faced by luxury brands as resale becomes more prevalent. Brands are seeking to curb counterfeit sales and protect their intellectual property. The case could set a precedent for how resellers use a brand's name in marketing as resale gains popularity in the fashion industry.
WGACA, co-founded by Seth Weisser and based in Soho, NYC, is exploring legal options following the verdict. The jury awarded Chanel $4.56 million in damages, but denied Chanel's request for $6.7 million in attorney fees. The exact start date of the court case is not specified. The outcome of this case will be closely watched by both luxury brands and resellers in the fashion industry.
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