3M wins $200k face mask settlement
An Amazon seller has agreed to pay almost $200,000 to settle a trademark lawsuit brought by face mask manufacturer 3M over alleged price gouging.
According to a court order issued last week, KM Brothers purchased almost 20,000 N95 respirator masks and resold them as authentic 3M products
KM earned $372,000 from the sale of just less than 19,000 individual masks at “substantially inflated prices”. 3M sued at the US District Court for the Central District of California, as part of a wider campaign against so-called ‘price gougers’.
The parties submitted a proposed settlement, which has now been approved by the court. Under the order, KM must pay 3M $192,615, almost $30,000 more than the vendor earned in profits from the masks.
KM has also been barred from using any of 3M’s trademarks. It is the latest win for the mask manufacturer as it looks to stamp out the unauthorised use of its brand during an uptick in demand.
Last month, 3M reached a deal with Ohio-based Preventative Wellness Solutions, which agreed to pay a settlement fee.
3M said those funds would be donated to the Direct Relief charity. In June, meanwhile, 3M settled with Hulomil and TAC2 Global, who have agreed to stop selling the N95 masks except through an authorised distributor.
One Florida-based defendant, Geftico, has hit back at 3M’s claims. In a motion to dismiss the lawsuit, Geftico argued that, “after the elimination of all of the self-congratulatory fluff and sound bites to placate the media, 3M’s case crumbles like a cookie”.
“Based on these facts, 3M’s position is essentially akin to saying that an eBay seller offering to sell Nike Air Jordan sneakers (even above original list price) dilutes Nike’s marks by such resale. On its face, such a position is patently absurd and would actually be injurious to commerce,” the Geftico filing said.
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