Gucci, Facebook File Joint Lawsuit Against Alleged Counterfeiter

Gucci and Facebook alleged the unidentified defendant used multiple Facebook and Instagram accounts to promote her international online counterfeit business. (Getty Images)
Gucci and Facebook alleged the unidentified defendant used multiple Facebook and Instagram accounts to promote her international online counterfeit business. (Getty Images)
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Gucci, Facebook File Joint Lawsuit Against Alleged Counterfeiter

Gucci and Facebook alleged the unidentified defendant used multiple Facebook and Instagram accounts to promote her international online counterfeit business. (Getty Images)
Gucci and Facebook alleged the unidentified defendant used multiple Facebook and Instagram accounts to promote her international online counterfeit business. (Getty Images)

Gucci and Facebook have filed a joint lawsuit in California against an individual who allegedly used the US group's social media platforms to sell fake Gucci products, the two companies said on Tuesday.

The initiative, a first of its kind for both Gucci and Facebook, is the latest example of an Internet giant joining forces with a luxury label to fight the proliferation of counterfeit goods being sold via social media.

Amazon has filed similar lawsuits over the past year with Valentino and Ferragamo.

In a statement, Gucci - the profit engine of French group Kering - and Facebook alleged the unidentified defendant used multiple Facebook and Instagram accounts to promote her international online counterfeit business.

Online sales of luxury handbags, shoes and garments have boomed over the past year as the coronavirus pandemic forced retailers to temporarily close their stores.

Groups like Facebook are keen to make a bigger push into the luxury market and "social commerce", but to do so they need to show that their platforms are not a conduit for counterfeiting and are safe for brands, some of which are reluctant to sell their products through third-party players.

"More than one million pieces of content were removed from Facebook and Instagram in the first half of 2020, based on thousands of reports of counterfeit content from brand owners, including Gucci," the statement said.

It added that in 2020 alone the actions of Gucci's in-house intellectual property team had resulted in four million on-line counterfeit product listings being taken down, the seizure of 4.1 million counterfeit products, and 45,000 websites, including social media accounts, being disabled.



Lululemon Shares Tumble as Yogawear Firm Warns Tariffs Will Crimp Profit

FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
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Lululemon Shares Tumble as Yogawear Firm Warns Tariffs Will Crimp Profit

FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo

Lululemon Athletica's shares fell 21% in premarket trading on Friday, as the maker of high-end leggings warned that tariff-related costs and uneven demand in key markets of North America and China will dent its profits this year.

The Canadian firm, whose Align yoga pants sell for $128 apiece on its website, will raise prices "modestly" for a "small portion of the assortment" and ramp up discounts for the rest of the year, company executives said.

Lululemon has struggled to retain shoppers, despite its efforts to introduce new styles of sports bras and athletic jackets, as it faces intense competition from trendier and more affordable brands in North America and mainland China.

"Despite (Americas) decline, management continues to prioritize product newness and China expansion over addressing a pullback from core customers and evident traffic declines," Jefferies analyst Randal Konik said in a note.

"We believe this misalignment is concerning."

Lululemon joins sportswear rivals Nike and On in raising prices in the US as erratic trade tactics under President Donald Trump rattle global markets and fuel fears of a recession.

Lululemon trimmed its 2025 earnings forecast and said it expects margins to come under pressure from the proposed tariffs, which will impact products from some of its largest sourcing hubs in Vietnam, Cambodia and Sri Lanka.

"My sense is that in the US, consumers remain cautious right now, and they are being very intentional about their buying decisions," CEO Calvin McDonald said on a post-earnings call.

The company's stock, which is down about 14% this year, was trading at $261.90 before the bell on Friday. The news dragged Nike's shares down 1.4%.

Lululemon's forward price-to-earnings multiple, a common benchmark for valuing stocks, is 21.46, compared to that of 31.37 for Nike and 9.54 for Gap.