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Thousands of Wal-Mart customers are being offered refunds after the world's largest retailer admitted that it had been selling fake Fendi handbags and wallets.
Fendi's owner, LVMH, is also receiving an undisclosed amount of compensation, as part of the settlement of a Manhattan lawsuit that had threatened to embarrass the retailer and highlight once again the widespread problem of counterfeit luxury goods.
In some Las Vegas branches of Sam's Club, Wal-Mart's warehouse chain, customers snapped up handbags that normally cost US$925 ($1200) for as little as US$295, and US$360 wallets that were selling for little more than US$200.
Fendi said that Wal-Mart had failed to check that its supplier was a genuine reseller of the company's merchandise, and had therefore shown "a reckless disregard or wilful blindness as to whether these items bear counterfeits of Fendi's registered trademarks".
Handbags, shoulder bags, purses, wallets, scarves and keychains were all among the knock-off ranges on sale. Fendi estimated that sales had run into millions of dollars.
Wal-Mart said that it was no longer doing business with the supplier.
- Independent
