August 28, 2023
Lutron Takes Action Against Amazon Reseller
Company launches lawsuit to protect its sales channels and brand reputation
In a move that underscores the challenges of e-commerce for consumer-focused lighting and controls manufacturers, Lutron Electronics Co., the worldwide leader in lighting controls, has initiated legal action against New York ecommerce business, Leetronics and its CEO, Eliran Yadid, individually. The lawsuit was filed in the United States District Court for the Eastern District of Pennsylvania on August 25, 2023.
Central to the complaint is the alleged unauthorized sale of Lutron products on major e-commerce platforms, including Amazon. Lutron’s complaint centers on trademark infringement, marketplace confusion and brand reputation.
Lutron, well-known for its commitment to product quality, operates in both brick-and-mortar channels and ecommerce channels through an established network of authorized distributors, dealers and ecommerce sellers. However, the emergence of e-commerce platforms has introduced some hard-to-control, complex dynamics. Despite not being a part of Lutron's Authorized Sellers list, Yadid and Leetronics have been allegedly reselling a significant volume of Lutron products online, particularly on Amazon.
From Caséta Wireless to Maestro – product integrity being questioned
Feedback from online shoppers suggests that several flagship products like the Caséta Wireless lighting control system and the Maestro dimmer have been available for purchase outside of Lutron’s approved seller network.
Above: Amazon reviews included in Lutron's complaint
Lutron claims the products sold by the defendants are not authentic Lutron items because, among other reasons, these products don't qualify for the Lutron Warranty, don't adhere to Lutron's quality control standards for Authorized Sellers, and lack the customer service benefits that come with genuine Lutron products.
According to the complaint, several customers have voiced concerns about product authenticity, raising questions about whether the Lutron products they purchased from e-commerce sites were genuine or counterfeit. These concerns, echoed in Lutron’s legal claims, underline the necessity for companies to control their product distribution in the online market.
Lutron alleges that the defendants sold over 2,500 infringing products via their Amazon Storefront, generating revenue exceeding $68,000. Lutron also claims that Yadid and Leetronics have not only been reselling but have also actively induced Authorized Sellers to breach company guidelines.
Lutron informed the defendants about the prohibition in a cease-and-desist letter sent to Yadid and Leetronics on Feb. 21, 2023. The company followed up with similar letters on March 6 and April 14, 2023. The April 14 letter also included a draft complaint prepared for filing in the U.S. District Court for the Eastern District of Pennsylvania. Lutron explains that all notifications were ignored.
The lawsuit doesn't reference any efforts by Lutron to address the situation directly with Amazon. However, such details might be extraneous and not pertinent to the original complaint filed against the defendants. Lutron is pushing for damages and seeks both preliminary and permanent injunctions against the alleged infringers. Court documents do not yet indicate that a summons has been served against the defendants.
