Patagonia sues retailer Nordstrom, claiming fake sales

Outdoor clothing firm Patagonia has filed a lawsuit against US retail giant Nordstrom, accusing it of selling counterfeit versions of its products and requesting a jury trial.

The complaint centres around clothing items sold at Nordstrom Rack ‘off-price’ retail outlets, which sell unsold, clearance and end-of-season clothing and accessories at a discount to the main Nordstrom stores.

It accuses the retailer of selling “thousands of counterfeit Patagonia sweatshirts and t-shirts,” adding that the knock-offs were “obvious” and that as a former authorised retailer of Patagonia products Nordstrom should have been able to spot them.

Moreover, Nordstrom’s former status as a reseller means “customers expect to find genuine Patagonia product at Nordstrom stores [which is] why Nordstrom’s sale of counterfeit Patagonia apparel is so damaging to Nordstrom’s customers and to Patagonia’s brand and reputation with those customers.”

The suit says counterfeit Patagonia products started to appear at Nordstrom Rack stores shortly after the end of the years-long dealer relationship between the two companies.

Among the signs that the clothes were fake were neck labels indicating they were organic cotton, with contradictory care labels saying they were made of 100% recycled polyester, and misspelled hang tags claiming they were made in Fair Trade facilities.

“Patagonia has spent decades, and invested millions of dollars, to establish product quality and fair labour practices as pillars of its brand,” says the complaint.

“These counterfeit products prey on Patagonia’s reputation, misleading customers into buying poor quality products that were, on information and belief, made in factories with conditions that do not meet Fair Trade Certified requirements.”

The lawsuit is seeking an injunction on sales of the counterfeits, as well as damages. Nordstrom said it is aware of the lawsuit and is reviewing the situation.