Flipkart offers out of court settlement in US shoemaker Skechers' case

After seven months of US shoemaker Skechers' complaint on Flipkart for selling counterfeit products on its e-commerce platform, the Bengaluru based online marketplace firm has reportedly offered an out-of-court settlement to the former.

Citing sources an ET report said that Flipkart has offered some cash payment and a commitment to do certain amount of business for Skechers as an offer to settle out of court.

However, it could not be ascertained that whether the offer was accepted and both parties have declined to comment on it as the matter is subjudice.

In December 2017, the US-based footwear brand had filed cases against the e-commerce marketplace and four sellers on its platform for allegedly selling its fake products.

Skechers also raided seven warehouses in Delhi and Ahmedabad to recover fake merchandise from sellers Retail Net, Tech Connect, Unichem Logistics and Marco Wagon, the company said in its petition submitted to the Delhi High Court.

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Reacting to the allegations, Flipkart had filed a police complaint against its vendor and supplier Macrowagon Retail (MRPL) for allegedly committing cheat, fraud, and breach of trust.

While Flipkart claimed that it is only an online marketplaces- merely help connect sellers with consumers, MacroWagon called the charges against it as baseless.

The matter did not stop here as MacroWagon retaliated and sent a legal notice to Flipkart earlier this month.

One of the largest vendors of Flipkart had alleged that Flipkart India asked it to import Skechers shoes from suppliers in China that were pre-designated by itself, despite Flipkart having an agreement with Skechers South Asia for imports.

The vendor had also asked Flipkart to pay Rs 20 crore in return for non-payment of dues and damages.

Meanwhile, offline footwear brand Metro Shoes had dragged Flipkart for allegedly encroaching trademark rights by its private label – Metronaut.