New details regarding Nike’s ongoing lawsuit against StockX were just uncovered this week, accusing the resale platform of knowingly selling counterfeit sneakers and the inability to determine if products coming into its facilities are authentic. News of the latest documents was first reported by @Sneakerlegal on X.
It’s worth noting that the documents were filed back in August but were unsealed this week. In the suit, Nike attacks StockX’s authenticity claims, saying that the resale giant admitted that its authenticators could not determine if a product is authentic, passed counterfeit footwear as authentic, and it had no idea of the percentage of fake sneakers that made it through authentication and into consumers’s hands.
The filing from Nike revealed that fake versions of several popular sneaker releases have slipped past StockX’s authentication process, including the Ben and Jerry’s “Chunky Dunky” SB Dunk, the Grateful Dead SB Dunks, Off-White x Air Jordan 2s, and more.
In the documents, Nike lawyers also highlight StockX’s efforts in downplaying its “deeply flawed” authentication system and “deceptive advertising practices” while even encouraging the resale of suspected counterfeit sneakers. Nike also revealed it discovered that a “fraud ring” got away with selling over 1,800 products on the platform before it was eventually stopped.
The suit also refers to the time when sneaker collector Roy Kim bought 38 pairs of fake Nike sneakers from StockX between March and July 2022, where the brand inspected the sneakers and confirmed that they were fake pairs.
Nike is asking the courts to rule in favor of the brand based on its evidence challenging StockX’s practices of promoting counterfeit sneakers and false advertising.
In a statement to Complex, StockX refuted the claims. The full text of the reply can be found below:
Nike’s claims are completely misguided. Contrary to their allegations, StockX is a leader in the fight against counterfeiting, a pervasive issue affecting brands globally. It’s why verification has been at our core since inception, and because of our leadership in this space Nike has previously recommended StockX to its customers, partnered with StockX, and praised StockX as “a good actor.” We have invested millions of dollars in technology, training, and tooling to deliver on our commitment to our customers, and we stand behind our verification process with our Buyer Promise.
The products in question in this case amount to a mere 0.0004% of the 17.8 million Nike sneakers StockX reviewed while this litigation was ongoing. Compare that to the more than $80,000,000 of suspected counterfeit sneakers alone that StockX has prevented from being sold on our platform. StockX has long done our part to prevent bad actors from trading on our platform, but we can’t do it alone. It’s a shame that rather than work with us to fight fakes, Nike has opted to use its resources to pursue meritless, expensive litigation and persecute a company that has long worked to fight the prevalence of counterfeits.
Read the full article here
