Cosmetics giant Estee Lauder has accused Target Australia of selling counterfeit make-up, forcing the retailer to pull the popular M.A.C make-up brand from its shelves.
In a statement released on its international website, M.A.C said: "M.A.C Cosmetics has conducted extensive testing in our US laboratories and found that M.A.C marked products that were, until recently, being sold at Target Australia are counterfeit.
"We notified Target Australia and they have withdrawn the products from their shelves and website.
"Target Australia is not an authorised retailer of M.A.C Cosmetics and we did not supply any M.A.C products to Target Australia."
Target last night refuted claims its make-up was fake, but said it would remove M.A.C products from the shelves of their 300 stores until further testing was completed.
The retailer also confirmed it was now involved in legal action with Estee Lauder.
"As this matter is now the subject of legal proceedings it would be inappropriate to comment, however Target prides itself on the quality and value of its products and always seeks to find ways to bring customers a wider range at great prices," Target corporate affairs manager Megan Lane told The Daily Telegraph.
M.A.C products sold at Target had long been a bone of contention among retailers, with the products sold for much less than by the product's authorised dealers.
Since May, M.A.C lipsticks were priced at $21, Eyeshadows for $22 and foundations for $29 - up to 40 per cent off the recommended retail price at the make-up brand's authorised retailers.
In Australia, authorised retailers for M.A.C are its own stores, M.A.C Pro stores anddepartment stores Myer and David Jones.
Based in the US, M.A.C Cosmetics was acquired by Estee Lauder in 1998.
"Target believes the M.A.C product supplied to Target was sourced lawfully by a domestic supplier from a legitimate M.A.C wholesaler overseas. Sourcing genuine product in this way is not illegal in Australia and can result in significant savings for customers," Ms Lane said.
An ACCC spokesman last night said customers should look carefully at what they purchased before buying.
"Concerns may arise where consumers are led to believe they are purchasing a particular brand of product, when that is not the case," spokesman Duncan Harrodd said.
It has been a challenging month for Target, which was earlier forced to defend its range of children's clothes after a mother accused them of selling provocative clothing to young girls.
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