In a significant victory in its bid to maintain control over the distribution – and marketing – of products bearing its name and other trademarks, a U.S. District Court in New York has ruled in favor of Chanel, Inc. The final judgment issued by Judge Louis Stanton of the U.S. District Court for the Southern District of New York on February 26 formalizes the jury’s findings and imposes strict penalties on What Goes Around Comes Around (“WGACA“), including: a permanent injunction restricting WGACA’s use of Chanel’s trademarks and branding; $4 million in statutory damages for selling counterfeit handbags; and disgorgement of $12,739 in profits from the sale of unauthorized Chanel-branded handbags and 779 counter-support items.
The judgment, as first reported by TFL, comes amid Chanel’s long-running litigation against luxury reseller What Goes Around Comes Around. In particular, it follows from the second stage of the proceedings that focused on equitable remedies and a 2024 federal jury verdict that found WGACA liable for trademark infringement, false association, unfair competition, and false advertising.
Scope of the Permanent Injunction
The court’s injunction bans What Goes Around Comes Around and its affiliates from engaging in specific activities that could mislead consumers into believing the reseller is affiliated with Chanel. The key prohibitions include …
> Misuse of Chanel’s Trademarks: WGACA is barred from using Chanel’s name, logos, the interlocking CC monogram, and the brand’s stylized font in any promotional material, advertising, or store displays “in any manner that conveys the impression that WGACA is related to Chanel.”
> Sales of Unauthorized or Altered Products: WGACA is prohibited from selling Chanel-branded items that have been materially altered or repaired without full disclosure.
> Mandatory Disclosures on Branded Items: WGACA must include a clear and conspicuous disclaimer on all Chanel-branded items, stating, “WHAT GOES AROUND COMES AROUND IS NOT AFFILIATED WITH CHANEL AND HAS NOT BEEN AUTHORIZED BY CHANEL TO SELL THIS ITEM.”
> Restrictions on Authentication Claims: WGACA cannot make any claims or guarantees about the authenticity of Chanel-branded items unless it has documented proof of its own authentication process.
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