Crocs Sues Discount Store Daiso for Selling $3 USD Knock-Offs

Crocs has taken an official complaint to the California District Court last month claiming that Japanese discount retailer Daiso has created and sold knock-off versions of its classic clog-like shoes.

Crocs is suing the discount store for selling fake versions of its sandals all across the United States. Crocs has reportedly claimed that the Daiso clogs are “virtually identical to the design of Crocs’s three-dimensional design marks.” Though, the Daiso pairs are made in China and undercut the market selling at retail between $3 USD and $3.50 USD. Crocs also notes that Daiso has attempted “to free-ride and trade on the significant goodwill developed by Crocs through its innovative footwear.”

In a statement from law firm Arnold and Porter Kay Scholer, which is representing Crocs, it said,

“This infringement and dilution scheme is intended to confuse, deceive, and mislead consumers into drawing associations between Crocs and Daiso and their respective footwear products so that Daiso can enjoy unfair gains and profits at the expense of Crocs.”

The Daiso knock-offs have caused major confusion amongst consumers as one Twitter user posted that other consumers were confused that they were able to buy such inexpensive Crocs at Daiso. Daiso is now amongst a long list of new lawsuits Crocs has filed since July 2021, when they sued 21 companies for infringing on its registered trademark.

It remains to be seen how this story will unfold.

I liked the screenshots of Tweets in the Complaint showing consumers thinking they bought cheap Crocs at Daiso and saying they didn't know Daiso sold Crocs. I thought that was effective. pic.twitter.com/3jOXqmNB88

— Trademarks Are Fun (@TAFLegal) June 17, 2022

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