Luxury brand, reseller in fight over who gets to bag the resale market

Some handbags come with dust bags, authentication cards and, apparently, seven years of federal litigation.

According to reporting by The Fashion Law Blog, the dispute stems from a 2018 lawsuit Chanel filed against The RealReal, alleging the resale platform marketed and sold counterfeit Chanel goods and misled consumers about authentication. The suit included claims for trademark infringement, counterfeiting, false advertising and unfair competition.

The RealReal later fired back with antitrust counterclaims, arguing Chanel was not merely protecting its trademarks but trying to control the resale market by pressuring retailers, landlords, publishers and consumers.

Now Chanel is asking a federal court in New York to reject The RealReal’s latest attempt to revive those antitrust claims, saying they are “more of the same” and show harm only to The RealReal — not to competition overall.

Chanel also called The RealReal’s proposed market for “top-tier investment-grade handbags and hold-value handbags” artificially narrow and “gerrymandered,” which is legalese for: nice try, but that clutch won’t close.

The case asks a pricey question, according to the reporting: when is a luxury brand protecting its trademarks, and when is it trying to keep resale rivals out of the boutique?