Luxury v. Resale: Fashion’s Fight for Control in the Secondary Market

With secondhand markets rapidly becoming a hot spot for authentic designer goods and the platforms that sell these goods growing in size and popularity, luxury brands are taking notice. Recent estimates show that the secondary market is expanding three times faster than firsthand luxury, with projections valuing the resale market at $260 billion by 2030.[1] The luxury industry remains divided on how to respond. Notably, Chanel has chosen to litigate under Lanham Act claims, while other brands are opting to bring resale operations in-house or are seeking middle-ground partnerships with resale platforms.[2]

Chanel’s Legal Battles

Among the brands taking action, Chanel stands out for its aggressive legal strategy to assert control over the secondhand sale of its products.[3], [4] In lawsuits against popular resale platforms What Goes Around Comes Around LLC (WGACA) and The RealReal, Inc. (The RealReal), Chanel alleged several violations under the Lanham Act, asserting that these resellers have willfully infringed upon its trademarks and falsely implied affiliation through their advertising.[5], [6]

In June 2025, the court granted Chanel a $4 million jury verdict over WGACA for trademark infringement and false advertising in addition to issuing a permanent injunction barring WGACA from using Chanel’s trademarks in any manner suggesting an affiliation with the brand.[7] Meanwhile, Chanel’s litigation against The RealReal is ongoing after five years of legal battles. A 2020 decision allowed several of Chanel’s claims to proceed following The RealReal’s motion to dismiss.[8] Chanel asserts that like WGACA, The RealReal’s marketing practices falsely imply brand affiliation and harm Chanel’s reputation by permitting the sale of counterfeit bags on its platform.[9] While Chanel continues to fight for control in court, other luxury brands are taking alternative approaches to manage resale.

Owning Resale – Rolex and Ralph Lauren Bring the Market In-House

Rather than litigate, Rolex and Ralph Lauren are opting for in-house programs with Rolex’s Certified-Pre-Owned program and Ralph Lauren Vintage.[10], [11] Rolex’s CPO program utilizes authorized dealers to source the pre-owned watches, authenticates, services, and provides new owners with a two-year Rolex warranty.[12] Pricing is set by the dealers, but the program grants Rolex an element of control over the sale and experience of the product.[13] Conversely, Ralph Lauren is sourcing their own vintage from second-hand marketplaces and reselling through curated vintage drops—often at five times the market rate.[14] By asserting this control over the resale of their products, Ralph Lauren—like Rolex—plays an active role in the product experience and has added a new revenue stream.[15]

A Middle Ground – Resale x Luxury Partnerships

Some brands are pursuing a collaborative approach. Chloé x Vestiaire Collective and Poshmark x Coach x EON have introduced partnerships offering digital product passports (DPPs).[16] The partnerships allow Chloé and Coach to authenticate the products before listing and the DPPs store product information, enabling further resale, and guaranteeing authenticity for later buyers.[17] The partnership approach allows brands greater control without burdening their existing business model with the process of managing an entire resale operation in-house.[18]

What’s Next – Resale’s Place in the Market Continues to Evolve

As brands continue to experiment with different resale strategies, the future of the secondary market will likely vary across the industry. [19]. What can be expected is increased use of serialization and DPPs to control for authenticity, data-sharing between brands and resale platforms to keep fakes out of the market, and lawsuits when trademark infringement reaches too far into authenticity and affiliation implications. [20].

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1.     Resale is Gaining Ground: Luxury Brands Are Split on How to Respond. The Fashion Law. https://www.thefashionlaw.com/resale-is-gaining-ground-luxury-brands-are-split-on-how-to-respond/

2.     Id.

3.     Chanel v. WGACA, LLC, 18 Civ 2253 U.S. Dist. Ct. 2025 WL 1765857 (S.D.NY. Mar. 28, 2022)

4.     Chanel v. The RealReal, Inc., 449 F.Supp.3d 422, (S.D.N.Y., 2020)

5.     Chanel v. WGACA, LLC, 18 Civ 2253 U.S. Dist. Ct. 2025 WL 1765857 at *1

6.     Chanel v. The RealReal, Inc., 449 F.Supp.3d 422 at 429

7.     Chanel v. WGACA, LLC, 18 Civ 2253 U.S. Dist. Ct. 2025 WL 1765857 at 1, 6

8.     Chanel v. The RealReal, Inc., 449 F.Supp.3d 422 at 429

9.     Id.

10.  Resale is Gaining Ground: Luxury Brands Are Split on How to Respond. The Fashion Law. https://www.thefashionlaw.com/resale-is-gaining-ground-luxury-brands-are-split-on-how-to-respond/

11.  Ralph Lauren’s Vintage Play: Owning the Resale Game. The Fashion Law. https://www.thefashionlaw.com/ralph-laurens-vintage-play-owning-the-resale-game/

12.  Resale is Gaining Ground: Luxury Brands Are Split on How to Respond. The Fashion Law. https://www.thefashionlaw.com/resale-is-gaining-ground-luxury-brands-are-split-on-how-to-respond/

13.  Id.

14.  Ralph Lauren’s Vintage Play: Owning the Resale Game. The Fashion Law. https://www.thefashionlaw.com/ralph-laurens-vintage-play-owning-the-resale-game/

15.  Id.

16.  Moizant, Fanny et al., Resale’s Next Chapter: How Fashion and Luxury Brands Can Win in the Secondhand Market. BCG. https://www.bcg.com/publications/2025/how-fashion-luxury-brands-can-win-secondhand-market.

17.  Id.

18.  Id.

19.  Resale is Gaining Ground: Luxury Brands Are Split on How to Respond. The Fashion Law. https://www.thefashionlaw.com/resale-is-gaining-ground-luxury-brands-are-split-on-how-to-respond/

20.  Id.