Target in Australia offers to settle Estee Lauder lawsuit

June 18, 2013 at 2:59 PM

SYDNEY, June 18 (UPI) -- The Wesfarmers Target retail chain in Australia said in court Tuesday it was ready to settle claims that it sold counterfeit Estee Lauder make up.

In Federal Court, Target said it would turn over all of its marketing materials related to sale of Make-Up Art Cosmetics, an Estee Lauder subsidiary that accused the Australian retailer of selling fake goods under its name.

In addition, Target offered to sever its ties with any product sold under MAC's trademarks, pay MAC the profits it made during a promotional sale of MAC products in 2012, including interest, and pay MAC's legal fees, The Sydney Morning Herald reported.

But there maybe a catch, the newspaper said. Estee Lauder is interested in protecting its reputation, especially given claims the allegedly fake MAC products were shoddy -- including, for example, a sun screen product that did not work.

With the company focused on its reputation, it is unclear Estee Lauder is willing to accept the settlement, as Target has not agreed to admit that it did anything wrong.

Target is pursuing a case in the United States against a distributor from Texas that allegedly sold it counterfeit MAC products, the Herald said.

The newspaper said two department stores, Myer and David Jones have exclusive contracts for MAC products in Australia.

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