A fast-growing Australian company is defending itself against allegations that its copycat cosmetics are going too far. MCoBeauty is on track to make a quarter of a billion dollars in sales this year and is now expanding into America. But its path to riches has been bumpy.
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00:00So this is the Charlotte Tilbury, which is definitely high-end, and this is Emco, which
00:06you can get at Chemist Warehouse.
00:07Emco Beauty is an Australian company, and its so-called dupes are divisive.
00:13I did a video on this that went absolutely viral.
00:16Every single comment was like, who's their lawyers?
00:19Emco's lawyer says his client's dupe is legally fine because it doesn't infringe on any of
00:25Charlotte Tilbury's protected assets.
00:28Let's start with the word flawless.
00:29Charlotte Tilbury does not own the word flawless.
00:32And then the top and the shape and that drop thing?
00:35That element is actually a registered trademark, the diamond.
00:38But there's no diamond here.
00:41Charlotte Tilbury wouldn't comment, but says dupes can never replace the real deal.
00:46Emco Beauty's founder says that's not the point, and they're not trying to deceive their
00:51customers.
00:52They know what $65 buys, and they know what ours buys.
00:55An American makeup company sued Emco Beauty three years ago, alleging deceptive marketing
01:01on a lookalike concealer.
01:03This is it here.
01:04The multi-million dollar business also faced legal action from an Australian company, which
01:10called one of Emco Beauty's eyelash dye kits unethical.
01:15Dupe culture is also concerning smaller cosmetic entrepreneurs like Iris Smit, who reckons
01:20that her eyeliner stamp has been copied far too much.
01:24It's almost like spot the difference.
01:26It's such a big beast to try and fight, especially as a small business.
01:31Legal expert Sarah Hook says that tighter laws against duping would lead to monopolies
01:36on mascara, and this wouldn't be good for customers.
01:40Beauty dupes have been around forever, and we don't see cases every day, every week,
01:46every month.
01:47Ethically, do you get a bit worried about the copying that's going on?
01:50No, I don't get drawn into that side of things at all.
01:53My job is to keep things legal.
01:56And it is a job that is getting even more complicated as the company expands into the
02:01United States, which is known to be litigious.