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Is Coach bullying people out of selling their secondhand Coach purses on online outlets such as eBay and Craigslist? That’s what a class action lawsuit is claiming.
Consumers are fighting back against Coach with a class action lawsuit that accuses the high-end handbag company of engaging in “an illegal, statewide and nationwide campaign to suppress ‘second hand’ sales of its handbags and other products… [in order to] force all consumers to purchase Coach products only in their expensive retail stores, rather than through online second hand online outlets such as eBay.”
Plaintiff Gina Kim filed the Coach class action lawsuit after she and other eBay sellers were allegedly subjected to trademark bullying and forced to take their Coach items off eBay. According to her complaint, Coach notified eBay that a handbag advertised for sale by Kim was counterfeit and infringed on Coach’s trademarks, even though the handbag was not counterfeit. These “unsubstantiated claims,” she says, led to the removal of her item from eBay and the elimination of her seller account. Coach also contacted Kim through their attorney, demanding that she return the handbag to Coach and pay monetary damages. Kim maintains the handbag was not counterfeit.
According to the Coach class action lawsuit:
Without investigating the validity of its allegations, Coach wantonly accuses consumers of infringing its trademarks by selling counterfeit Coach products. Coach apparently monitors online retailers such as E-Bay, looking for ads from consumers selling second hand Coach products. In response to such ads, Coach delegates a New York law firm to launch a threatening letter to the consumer. These letters accuse the consumer of trademark infringement, threaten legal action, and demand the immediate payment of damages to Coach in “settlement” of Coach’s threats. At the same time, Coach (or its New York law firm) informs the online retailer that infringing merchandise is being sold on its website. In many cases, this causes the online retailer to involuntarily remove the allegedly infringing ad, and to disable the consumer’s online account. This destroys any chance the consumer had to sell the Coach product second hand, and otherwise damages the consumer.
In many cases (such as that of the lead plaintiff identified here), Coach’s allegations of infringement are flatly false. It appears that Coach fails to conduct even a minimally reasonable investigation into its counterfeiting claims before threatening legal action. For example, the lead plaintiff identified in this Complaint is a former Coach employee, who owned, and tried to sell, genuine and legitimate Coach products. It was entirely legal for her to do so. Coach’s threats against her were false, reckless, and unwarranted.
The Coach class action lawsuit is seeking a declaratory judgment that selling legitimate Coach goods secondhand is not a trademark infringement. It is also seeking damages for a proposed class of all Washington consumers who have, in the last three years, received a cease and desist letter from Coach or the agents of Coach, accusing them of attempting to sell infringing and counterfeit Coach products through an online outlet such as eBay, Craigslist or other such services, where such allegation was made without basis and has harmed the consumer.
A copy of the Coach Trademark Infringement Class Action Lawsuit can be read here.
Updated February 23rd, 2010
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3 thoughts onCoach Handbag Class Action Lawsuit
Hello, I thought the settlement ended in February 2021 and payments/vouchers were being sent out. I submitted my information in October of 2020, I haven’t received anything nor have I received any corespondents. Thank you
Please add me.
I just recently purchased on what I thought was a Coach Outlet website. It’s in China all fake no way to return for refund communication was horrible weeks before answering and then nothing. Any body else go thru this?