Chanel Triumphs in Legal Dispute Against What Goes Around Comes Around
Chanel has emerged victorious in its high-profile legal battle against the luxury reseller What Goes Around Comes Around (WGACA). The New York federal court sided with the fashion giant, ruling in favor of Chanel on all four counts of trademark infringement. The jury awarded Chanel $4 million in statutory damages, with additional non-statutory damages to be determined.
This landmark case, initiated by Chanel in 2018, revolved around WGACA’s alleged sale of counterfeit Chanel products and the implication of a non-existent partnership between the two companies. The trial, lasting several weeks, brought to light various aspects of the resale market, including the use of the Chanel brand and imagery by WGACA in its marketing efforts.
Key moments in the trial included the examination of handbags with serial numbers reportedly stolen from a Chanel factory in 2012 and other products carrying serial numbers voided by Chanel. Chanel’s legal team also contested the sale of 779 non-fashion Chanel items by WGACA, which were described as display materials never authorized for sale.
The case was closely monitored for its potential implications on the resale industry, particularly regarding the authenticity of pre-owned luxury goods. WGACA’s defense team, portraying the company as a David against the Goliath of Chanel, expressed disappointment with the verdict and indicated that the case is not yet concluded, with further legal options being explored.
Chanel, in its statement, expressed gratitude to the jury and reiterated its commitment to protecting consumers and its brand against false association and counterfeiting. This decision marks a significant moment in the ongoing dialogue between luxury brands and the burgeoning resale market.