Chanel and The RealReal make peace, perhaps: a 3 months stop of the lawsuit

Chanel and The RealReal make peace, perhaps: a 3 months stop of the lawsuit

Chanel and The RealReal try to make peace. The two companies have requested and obtained the temporary suspension for 3 months of the legal proceedings that oppose them. They thus intend to seek the path of an out-of-court settlement agreement, that would put an end to more than two years of accusations’ exchange. In November 2018, Chanel sued The RealReal for trademark infringement and counterfeiting, false advertising and unfair competition.

Chanel and The RealReal

In a regulation dated April 5, Judge Gabriel Gorstein of the United States District Court for the New York Southern District granted the parties’ request. He thus suspended the proceedings for three months. In addition, he called on the parties to “make concrete attempts to resolve the issue through discussion between the lawyers” and reach an agreement. Both Chanel and The RealReal are required to submit a joint report to the Court updating the negotiations. When? Either a week after the conclusion of the mediation or, in any case, by June 30, 2021. The indication is also useful to suggest to the judge whether to allow more time in view of an upcoming agreement or, in any way, possible. Otherwise the case will be resumed, scheduling the next hearing.

The old accusations

To give the news is The Fashion Law. The development comes nearly two and a half years after Chanel filed a lawsuit against The RealReal, accusing it of “improper business practices”. The brand claimed that the resale portal had sold eight Chanel-branded products, including handbags, as originals, but that were instead counterfeit goods. And according to the French brand, stating that “the products that consumers buy from The RealReal are 100% authentic”, the reseller has stained himself with “fake and misleading advertising”. The US portal, in addition to rejecting the accusations, defended itself by declaring in summary that Chanel’s is an attempt to stop circular economy.

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