Makeup sponge firm clamps down on grey market trade

The maker of Beautyblender makeup sponges has launched a crackdown on ‘grey market’ versions of its products being sold in the US.

The pink egg-shaped sponge product – developed by Hollywood makeup artist Rea Ann Silva – ended up being sold in bricks and mortar stores operated by Costco and TK Maxx (known as TJ Maxx in Europe), says a lawsuit filed by Beautyblender and reported by The Fashion Law blog.

The suit is suing its German distributor New Flag saying it had broken the terms of its contract supplied products to a third distributor and in so doing allowed grey market products to be imported into the US via unauthorised retailer White Diamond Cosmetics. The activity was discovered using the barcodes on products sold at Costco and TJ Maxx.

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