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AMERICAN EAGLE SUES AMAZON OVER ALLEGED ‘KNOCK-OFFS' OF AERIE PRODUCTS


MANY OF THE ALLEGED AERIE KNOCK-OFFS REFERENCED IN THE LAWSUIT ARE SOLD BY
THIRD-PARTY SELLERS ON AMAZON'S ONLINE MARKETPLACE

BY ANNIE PALMER | CNBC • PUBLISHED SEPTEMBER 25, 2024 • UPDATED ON SEPTEMBER 25,
2024 AT 5:08 PM



Justin Sullivan | Getty Images

A shopper walks by an American Eagle store on November 21, 2023 in Glendale,
California. 

 * American Eagle Outfitters filed a lawsuit against Amazon alleging the company
   infringed on its Aerie trademarks.
 * The complaint accuses Amazon of knowingly deceiving shoppers by featuring
   Aerie branding in its sponsored ads and organic search results.
 * Amazon has for years faced complaints from brands that accuse the company of
   hosting counterfeits on its third-party marketplace.

American Eagle Outfitters is suing Amazon for trademark infringement, alleging
the e-commerce giant used branding from its Aerie clothing line in search
results, leading consumers to "inferior quality knock-offs."

📺 Los Angeles news 24/7: Watch NBC4 free wherever you are

In a lawsuit filed Wednesday, American Eagle accused Amazon of "flagrant,
unauthorized use" of the Aerie and Offline by Aerie trademarks on its site to
deceive shoppers into believing the products were available on Amazon, drive
traffic to its platform and sell competing merchandise. The complaint was filed
in U.S. District Court for the Southern District of New York.

American Eagle said it didn't authorize Amazon to sell products from its Aerie
line of yoga pants, lingerie, loungewear and other attire, adding that it
"intentionally declined so Aerie can foster its own brand identity and customer
experience." American Eagle, founded in 1977, launched the Aerie brand in 2006.

> Get top local stories in Southern California delivered to you every morning.
> Sign up for NBC LA's News Headlines newsletter.

A shopper searching for Aerie products on Google will see sponsored and organic
links to Amazon's website, the lawsuit says. Clicking on a link leads to an
Amazon webpage that "displays only knock-offs and 'dupes'" of Aerie products,
including sweatshirts and exercise shorts, American Eagle alleges. The company
said it notified Amazon "over a month ago" of the infringing products, but says
they were relabeled with misspellings of its Aerie trademarks, including
"Aeries," "Arie" or "Aries."

"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,'" the complaint states. "These
statements are patently false because customers cannot shop for Aerie products
on Amazon."

Many of the alleged Aerie knock-offs referenced in the lawsuit are sold by
third-party sellers on Amazon's online marketplace. Launched in 2000, the
marketplace allows businesses to hawk their goods on the company's site. It's
amassed millions of sellers, and accounts for more than half of all goods sold
on the site.


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MANDATE

Amazon has faced similar complaints for years. In 2016, shoemaker Birkenstock
announced it would pull its products from Amazon in response to a surge in
counterfeits. That year, German automaker Daimler AG sued Amazon after it
discovered knock-off versions of Mercedes-Benz wheels sold by a third-party
seller.

In 2019, Amazon added a line to the "risk factors" section of its annual
financial filing warning investors of the growing threat of third-party sellers
peddling counterfeits. Since then, the company has stepped up its efforts to
police counterfeits on its site, launching a team that pursues criminal action
against counterfeiters, filing lawsuits and rolling out tools to help brands
protect their trademarks.

Amazon representatives didn't immediately respond to a request for comment. The
company has previously said it prohibits the sale of counterfeits on its site.

American Eagle is seeking an injunction and financial damages based on Amazon's
alleged trademark infringement.

WATCH: How the U.S. government and Amazon are fighting Chinese counterfeits


ALSO ON CNBC

 * Promises of 'passive income' on Amazon led to death threats for negative
   review
 * OpenAI CTO Mira Murati announces she's leaving the company
 * Meta unveils $299 Quest 3S VR headset, Orion AR glasses prototype

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