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According to a class action lawsuit, Wish.com steals product ideas and sells counterfeit versions without entering into official licensing agreements with the product creators.
Plaintiff Choon’s Design claims to have developed the Rainbow Loom, an educational rubber band craft designed for children.
The Rainbow Loom products include a set of rubber bands and hooks sold in kits. These kits can reportedly be used to make bracelets, charms, murals, figures, and other items.
Rainbow Looms won four Toy of the Year Awards in 2014. Since their creation, Rainbow Looms have reportedly sold around 3 million units – resulting in a revenue of more than $15 million. Rainbow Loom kits are sold by the maker and by online and in personal retailers who have licensing agreements with Choon’s Design.
Despite Rainbow Looms being patented by Choon’s Design, Wish.com allegedly sells a counterfeit version of the product on its website. Choon’s Design has filed a Wish.com class action lawsuit against the online retailer, accusing the company of violating trademark law.
“Plaintiff and Class Members do not sell or advertise any of their products on Wish.com, nor has Plaintiff or the Class Members authorized Wish or any other person to sell or advertise any of their products on Wish.com,” the Wish class action claims. “Nonetheless, Wish advertises purported Rainbow Loom products for sale on Wish.com and claims that they are ‘Verified by Wish.’”
Wish.com is an online retailer that was founded in 2011. The “direct-from-China bargain hunting” website allegedly offers clothing, accessories, jewelry, gadgets, shoes, wallets, bags, home décor, and other items. Wish reportedly partners with third party merchants to sell their products in exchange for a 15 percent fee.
Although the website claims to have a “zero-tolerance policy against intellectual property infringement,” the Wish.com class action states that the company routinely sells counterfeit products on its platforms. In some cases, counterfeit items allegedly receive a “Verified by Wish” badge directly from the website.
“Wish either promulgates or ignores the infringing activity of the merchants selling on its platforms and gives the infringers the ‘Verified by Wish’ badge, which both facilitates the infringing activity and expounds consumer confusion,” the Wish class action claims.
Choon’s Design LLC seeks to represent a Class of people and entities who do not have distribution in China but, within the last five years, have had their merchandise offered for sale on Wish.com with the “Verified by Wish” badge.
The Wish class action seeks compensatory damages, restitution, disgorgement, interest, court costs, and attorneys’ fees.
Choon’s Design and the proposed Class are represented by Lisa J. Frisella and Kimberly D. Neilson of Frisella Law APC and Dean Gresham, Bruce Steckler, Stuart Cochran, and L. Kirstine Rogers of Steckler Gresham Cochran PLLC.
The Wish.com Counterfeit Products Class Action Lawsuit is Choon’s Design LLC v. ContextLogic Inc. d/b/a Wish, Case No. 4:19-cv-05300-HSG, in the U.S. District Court for the Northern District of California.
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