Pharmaceutical giant Sanofi Consumer Healthcare claims that a Rockland company is selling old and damaged versions of its products online as if they are new.
Sanofi accused Hey Pharma LLC of trademark violations, in a complaint filed Oct. 28 in U.S. District Court, White Plains, for allegedly misrepresenting its products.
The products are sold on Amazon.com and other websites as new, the complaint states, “despite the fact that they are used, close-out, liquidation or diverted products.”
Sanofi also says that it never authorized or granted Hey Pharma permission to use its trademarks.
Hey Pharma managing partner Barry Lampert called the complaint “false and frivolous,” in an email response to the allegations. He said Sanofi is trying to eliminate fair competition and control pricing of its products on Amazon.
Sanofi is a $108 billion company by market capitalization and its consumer healthcare division is based in Bridgewater, New Jersey.
Hey Pharma was founded in 2016 and is headquartered in Bardonia, Rockland County, according to state corporation records, and is affiliated with MedWiz Solutions.
Lampert said Hey Pharma is a top-rated retailer of health, beauty and household products. Or as its website states, it’s “the place to shop for all your health, beauty and household needs.”
Amazon.com is its most prominent online outlet, according to the complaint, where it operates as Royal Meds.
The Sanofi brands in dispute include ACT mouthwash, Allegra allergy relief, Aspercreme topical pain reliever, Cortizone 10 anti-itch cream, Dulcolax laxative, Gold Bond lotions, Icy-Hot pain reliever, Rolaids heart burn relief and Unisom sleep aid.
Amazon has set standards for listing products:
- “New” items must actually be new and include the manufacturer’s warranty.
- “Renewed” items must look like new and have no visible cosmetic imperfections.
- “Used – like new” or “open box” goods must be in perfect working condition and include intact packaging.
- “Used – very good” products may have minimal signs of wear but remain in good working condition.
Hey Pharma allegedly represented Sanofi products as new when they were actually renewed, used – like new or open box, or used – very good.
“Each brand is uniquely authentic and has earned its place in the lives of millions of customers by consistently exceeding their expectations,” the complaint states. “When the Sanofi products arrive damaged, in poor packaging or not as described, consumers think less of the brands.”
Customer comments on Amazon demonstrate the problem, according to Sanofi. A Gold Bond container was placed in a soft envelope into which one-third of the lotion has spilled, a buyer complained. Another said the “product looks fake as it doesn’t have the seal on the lid.”
An Allegra buyer who got tablets that were due to expire in less than six months commented, “I will not be purchasing from you again.”
Sanofi argues that the sale of inferior products online confuses consumers, dilutes its goodwill and results in fewer sales.
The complaint charges Hey Pharma with unfair competition, false advertising and false designation of origin under federal trademark law.
It is asking the court to stop Hey Pharma from using its trademarks or intellectual property, from falsely advertising the condition of its products, and from selling its products in violation of trademark regulations. It is asking for three times the profits Hey Pharma made as a result of its actions.
Lampert said Hey Pharma intends to vigorously defend itself, aggressively pursue claims against Sanofi for anti-competitive actions, “and continue to offer consumers quality products at fair prices.”
Sanofi is represented by Manhattan attorney Priya Chadha and Boston attorneys Christopher S. Finnerty and Morgan Nickerson.
