Chanel and What Goes Around Comes Around (“WGACA”) are currently clashing over equitable remedies in phase two of trial in a trademark case that centers on the resale market. On the heels of a multi-week jury trial early this year and a jury verdict that unanimously found that WGACA had engaged in willful trademark infringement, false association, unfair competition, and false advertising, Chanel is angling for a permanent injunction, as well as additional monetary damages, including the WGACA’s profits.
Part of what the luxury goods titan is seeking on the injunction front is for WGACA to “prominently display a disclaimer on its website and on physical products.” In particular, Chanel wants WGACA to make it clear(er) to consumers (via disclaimers) that Chanel has not guaranteed the authenticity of the Chanel trademark-bearing products that WGACA is selling and that WGACA’s operations are neither affiliated with nor authorized by Chanel.
Counsel for Chanel has argued in connection with the parties’ ongoing trademark clash that the existing disclaimers that WGACA displays on its e-commerce site – in which it states that it “is not an authorized reseller nor affiliated with any of the brands we sell” – are not strong enough. As such, Chanel is angling to get the court to require WGACA to “prominently place and clearly and conspicuously feature [a] disclaimer on any webpage or social media post where CHANEL-branded items products are being offered for sale.” Chanel’s proposed disclaimer: “WHAT GOES AROUND COMES AROUND HAS NOT BEEN AUTHORIZED BY CHANEL TO SELL THIS ITEM. THIS ITEM HAS NOT BEEN AUTHENTICATED BY CHANEL.”
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