The encyclopedia · Legal & Compliance · Legal decision · 2018–2025
Chanel sued the reseller that guaranteed its bags — won on all four counts
Filed 2018; on Feb 6, 2024 the jury found for Chanel on every claim — $4M, a permanent injunction, and resale's authenticity guarantee ruled unsafe.
What Goes Around Comes Around · Chanel · 2024-02
What happened
What Goes Around Comes Around built a $150m-a-year business, by Chanel's estimate, selling vintage luxury with a '100% authenticity guarantee'. In March 2018, Chanel sued the New York reseller, arguing that only Chanel itself could guarantee a Chanel, and that WGACA's use of Coco Chanel quotations and Chanel-style marketing made shoppers believe the two companies were connected; Chanel's survey expert said 23 per cent of respondents believed WGACA 'makes handbags'. WGACA's counsel called the case 'a David v. Goliath battle between a global luxury titan and a three-store resale operation.'
After a trial, on February 6, 2024, the jury found for Chanel on all four causes of action: trademark infringement, false association and unfair competition over WGACA's use of Chanel's marks and hashtags; the same claims over its sale of non-genuine Chanel goods; trademark infringement over counterfeit goods; and false advertising. It awarded $4m in statutory damages. Co-founder Seth Weisser insisted the company had 'never in the history of the company sold a non-genuine or counterfeit product' and said the verdict turned on items 'voided in Chanel's database,' adding: 'The case is not over.'
He was right that it was not over — but the outcome got worse. On February 26, 2025, Judge Louis Stanton entered final judgment: a permanent injunction restricting WGACA's use of Chanel's trademarks and branding, the $4m in statutory damages, and disgorgement of $12,739 in profits from unauthorised Chanel-branded handbags and 779 counter-support items. In June 2025 the court rejected WGACA's bid to overturn the verdict, upheld the injunction and awarded Chanel more than half a million dollars in litigation costs, while refusing attorneys' fees: 'This is not an exceptional case.'
Why it happened
- Guaranteeing authenticity in Chanel's name implied Chanel stood behind the guarantee — the jury accepted that only the brand itself can do that.
- Quotations, hashtags and a COCO10 discount code read as affiliation; Chanel's survey evidence of consumer confusion gave the jury a concrete measure of it.
- Items voided in Chanel's database entered WGACA's inventory anyway — a reseller cannot police serial numbers it has no access to, and that gap became liability.
The lesson
A reseller may sell the bag but not the brand — once guarantees and codes imply the trademark owner stands behind you, the owner gets to choose the battlefield.
Aftermath
WGACA appealed to the Second Circuit, filing notice on March 27, 2025 and an amended notice on July 7, 2025, and posted a $5,078,000 bond on August 25, 2025; the case remains pending on appeal. The verdict has since been cited across the resale industry as the moment brands won control of who gets to certify their goods.
Sources
- Chanel wins lawsuit against What Goes Around Comes Around over trademark infringement — Glossy (Feb 7, 2024)
- Chanel Prevails in Trademark Trial Against Reseller What Goes Around Comes Around — The Fashion Law (Feb 6, 2024)
- Chanel v. What Goes Around Comes Around: Timeline of a Resale Case — The Fashion Law (Dec 2025)
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