U.S.-based international trade group Cashmere and Camel Hair Manufacturers Institute (CCMI) recently filed a lawsuit against global online marketplace Etsy, Inc. in U.S. District Court for the District of Massachusetts for allegedly advertising and marketing third-party counterfeit cashmere products through its platform. CCMI claimed Etsy violated the Lanham Act; Massachusetts’ false advertising law; common law prohibitions on unfair competition; and Massachusetts’ Anti-Dilution Statute. CCMI also brought a novel civil claim that Etsy conspired with the fake cashmere suppliers.
Etsy provides a third-party global marketplace for various goods and products. Currently, Etsy counts approximately 96 million active buyers, 7.5 million sellers, over 100 million listings, and $2.32 billion in 2021 revenue. In its suit, CCMI seeks to protect the market interest and reputation of its membership against products falsely advertised and marketed as “100% Cashmere” or “Cashmere” when they are made from “cheaper synthetic or man-made materials.” CCMI alleged Etsy’s website, ads, and automated consumer marketing emails sometimes feature shops selling counterfeit cashmere products, implicating the website in the scheme. CCMI also argued that Etsy failed to regulate these false claims, and instead profited from the counterfeit products via fees charged to sellers.
To succeed, CCMI must overcome considerable precedent favoring Etsy under the Communications Decency Act Section 230 — relied...
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