Mark Brutzkus, Chair of the Consumer Products Practice at Stubbs Alderton & Markiles, LLP, recently spoke to Beauty Independent regarding Patrick Ta Beauty’s lawsuit against CVS Pharmacy and distributor Asktrom Imports over the alleged unauthorized sale of its products. The article, “Patrick Ta Beauty Sues CVS, Distributor Over Unauthorized Product Sales,” examines the case, which claims CVS’ sale of products bearing Patrick Ta’s trademarks could mislead shoppers and diminish the brand’s reputation.
Prestige brands like Patrick Ta Beauty have been facing challenges controlling their distribution, with products appearing at off-price retailers like T.J. Maxx and Marshalls and online retailers such as Amazon. CVS has been testing an off-price beauty program called “Fresh Beauty Finds,” which features a rotating assortment of prestige brands, including Patrick Ta.
Despite Patrick Ta having an exclusive retail partnership with Sephora, the case isn’t black and white. Even if distributors violate resale restrictions, retailers that acquire the merchandise downstream aren’t bound by the same agreements. It all comes down to the contracts and evidence of violations, according to Brutzkus.
Many consumer product brands, including Moroccanoil, have sued T.J. Maxx and others in trademark disputes to no avail–the brand’s case was dismissed with prejudice. Brutzkus recommends brands tighten up contracts with distributors, track products, and establish quality-control standards.
“The practical distinction is between protecting product integrity and preventing consumer confusion on the one hand, and simply controlling where genuine products are resold on the other,” Brutzkus tells Beauty Independent. “The first is more likely to support a viable claim. The second is generally not.”
