American Eagle Outfitters Sues Amazon for Trademark Infringement Over Aerie Branding Misuse

In a significant legal move, American Eagle Outfitters has filed a lawsuit against Amazon, accusing the e-commerce giant of trademark infringement related to its Aerie clothing line. The complaint, lodged in the U.S. District Court for the Southern District of New York, alleges that Amazon has engaged in “flagrant, unauthorised use” of Aerie trademarks, misleading consumers and driving traffic to its platform through the promotion of counterfeit products.

American Eagle, established in 1977, launched the Aerie brand in 2006, specialising in yoga pants, lingerie, and loungewear. According to the lawsuit, Amazon's search results for Aerie products yield sponsored links leading customers to a webpage showcasing “knock-offs” and “dupes” of genuine Aerie merchandise. This tactic, American Eagle claims, is designed to deceive shoppers into believing they are purchasing authentic Aerie products when, in fact, they are not available on Amazon.

The lawsuit states that American Eagle did not authorise Amazon to sell products from its Aerie line and specifically chose not to partner with the platform to maintain Aerie’s distinct brand identity. Despite notifying Amazon over a month prior about the alleged infringement, the company asserts that Amazon only responded by relabelling the infringing products with misspelled variations of the Aerie trademark, such as “Aeries,” “Arie,” or “Aries.”

American Eagle’s complaint highlights that these misleading advertisements trick customers into thinking they are able to shop for Aerie products directly on Amazon’s platform, which is categorically false. Many of the products in question are sold by third-party sellers on Amazon’s marketplace, which has faced criticism for facilitating the sale of counterfeit goods.

This lawsuit is not an isolated incident for Amazon, which has been the target of similar allegations in the past. In 2016, Birkenstock withdrew its products from Amazon due to a rise in counterfeits, and Daimler AG also sued Amazon for similar issues related to counterfeit automotive parts. Over the years, Amazon has acknowledged the growing threat posed by third-party sellers and has made efforts to combat counterfeit sales, including establishing a dedicated team to pursue criminal action against counterfeiters and enhancing tools to help brands safeguard their trademarks.

American Eagle is seeking an injunction against Amazon’s alleged trademark infringement, as well as financial damages. The outcome of this case could have significant implications for both companies and the broader e-commerce landscape, especially concerning the protection of intellectual property rights in online marketplaces.