In 2018, French luxury fashion brand, Chanel, filed a lawsuit against upcycling company ‘What Goes Around Comes Around’, on the basis that the American retailers did not have authorisation to sell their products. This was not the only accusation however, as What Comes Around Goes Around were also said to have been falsely identifying with Chanel and using Chanel product imaging to promote their own business, as well as selling counterfeit products.
What Goes Around Comes Around prize themselves on combining “pre-owned luxury accessories and high fashion apparel,” and as a result have a large stock of used Chanel handbags and other accessories. However, even though one of the Co-Founders of the company, Seth Weisser, has stated “What Goes Around Comes Around has always had a rigorous authentication process and has never in the history of the company sold a non-genuine or counterfeit product”, Chanel have claimed that they still continue to profit off of counterfeit products, and have concerns that consumers of WGACA may start to affiliate these counterfeit luxury accessories with the Chanel brand.
During phase two of this case, Chanel have stated that that they want WGACA to “prominently display a disclaimer on their website and on physical products” which makes it clear that Chanel has not and cannot confirm that all products sold by WGACA are of 100% authenticity. Chanel also want all WGACA social media pages and webpages to have a proposed disclaimer that reads, “WHAT GOES AROUND COMES AROUND HAS NOT BEEN AUTHORIZED TO SELL THIS ITEM. THIS ITEM HAS NOT BEEN AUTHORIZED BY CHANEL.”
Since this has happened, Chanel has come out on top in this case as a New York jury voted in Chanel’s favour and against What Goes Around Comes Around, who now must pay $4 million in damages to the French luxury outlet. Seth Weisser has also stated, “we are incredibly disappointed with today’s verdict. However, the case is not over. The court has yet to hear post-verdict motions.”
This case has taken a toll on the already deteriorating relationship between luxury fashion brands and re-sellers, as worries over counterfeit products spike.
By Adam Little of Farnborough Sixth Form College
