China's NetEase Kaola Sues Consumer Rights Watchdog, Estee Lauder
Liao Shumin
/SOURCE : Yicai
China's NetEase Kaola Sues Consumer Rights Watchdog, Estee Lauder

(Yicai Global) June 22 -- A Chinese court has ordered four entities to compensate for damages after claiming that e-commerce platform NetEase Kaola, which specializes in maternity and baby products, sold fake French eye cream.

The problems started when French cosmetics firm's Shanghai unit Estee Lauder Trading told the China Consumers Association that the 15ml-containers of what was sold as Estee Lauder ANR Eye Cream on NetEase Kaola were counterfeits. CCA went on to mention this fraud in a report regarding the country's 'Double 11' shopping festival.

Estee Lauder Trading is a cross-border e-commerce competitor of NetEase Kaola, and has no right to provide authentication services under the Chinese law, the court of Haidian district in Beijing said in a statement.

Finally, Sequel Youxun Information Technology's news website Pcpop crafted an article about the CCA's report, gaining many clicks and circulating the false information.

This is why the lawsuit had four defendants: the CCA, Estee Lauder Trading, its parent Estee Lauder Companies, and Sequel Youxun Information Tech, which were all ordered to delete the relevant reports, post apologies, and compensate NetEase Kaola for its loss of CNY21 million (USD3.2 million).

Editor: Emmi Laine

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Keywords: NetEase Kaola , Reputation , LAWSUIT , China Consumers Association , Estee Lauder , Defamation , Cosmetics , Maternity Products , CCA