Case On Point
1-800 Contacts, Inc. ., v. Jand Inc., DBA Warby Parker
(U.S. Ct. of App. for the 2d Cir. 2024)
Like many companies, defendant Jand Inc., doing business as Warby Parker, purchased its competitor's trademarks to be used as keywords in online advertising campaigns. Thus, consumers who input "1-800 Contacts" as their search term would see Warby Parker advertisements. 1-800 Contacts, Inc. claimed that this practice constituted trademark infringement in violation of the Lanham Act. The district court dismissed the complaint and plaintiff appealed.
In affirming the district court observed that merely using a competitor's trademark as a search term does not violate the Lanham Act because the term is not being used to designate the source of the product or service. There would only be liability if the Warby Parker advertisement misled consumers as to the source of the products being advertised. In this instance, there was no such confusion, as:
- the Warby Parker advertisement was clearly labeled as an advertisement;
- the Warby Parker advertisement did not resemble a 1-800-Contacts advertisement; and
- no specific instances of consumer confusion were alleged.
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