Managing a supply chain that is as large as Targets can be very challenging. From time to time defective products or counterfeits can make their way in. These things happen. The US military has the same problem with its very large logistically system.
However that is where the “I didn’t know” stops. MAC makeup first discovered in 2012 that Target was selling their makeup in its stores. Target is not even a retailer of the brand. So not only was the company selling a brand they never stocked before, but it was counterfeit too.
Target received many complaints from MAC, but chose to ignore them. This resulted in a lawsuit that they lost and had to pay $1.8 million in damages to MAC.
This all started in 2009 and it is hard to say that they did not know:
Sometime in 2009, defendants began selling products alleged to be genuine M·A·C products on their website, www.getyourmacon.com. Defendants’ website contained assertions that “[a]ll of our products are 100% AUTHENTIC M·A·C, no fakes here!” and that the products being sold were not replicas but genuine “overstock” products. It is undisputed that defendants were not licensed or authorized by plaintiffs to advertise, distribute, sell, or offer to sell genuine M·A·C products.
Because this case involves counterfeiting and because plaintiffs have shown that defendants turned a blind eye to the counterfeit nature of the products thatdefendants were offering for sale, plaintiffs are entitled to treble damages in the amount of $1,862,604.24
From Case number: 13-634 – ESTEE LAUDER COSMETICS V. GET YOUR MAC
This is the counter for the counterfeit MAC makeup sold at Target:
Why is counterfeit makeup harmful, other then the damage it does to revenue and brand image?
Well take this story about a recent bust of counterfeit MAC makeup in Warwichshire, UK.
Fake versions of well-known make-up brands seized in Warwickshire contained “dangerous” metals such as mercury and lead, trading standards officers said.
The local council raided a Nuneaton shop after a resident reported an adverse skin reaction to the products.
Some products, which included counterfeit versions of Mac, Benefit and Naked Pallet, contained more than 19 times more lead than permitted.