Target "just doesn't know" if it has been selling counterfeit MAC cosmetics in its Australian stores, a court has heard.
The US cosmetics and fragrance giant Estee Lauder has taken Target Australia to the Federal Court, alleging that its stores were selling products that were falsely marked MAC.
In a hearing before the court in Sydney today, Target's barrister David Studdy SC said the retailer had taken the items off the shelves immediately after being informed of the allegations on August 28.
The court heard that Target was now waiting on results from an independent laboratory they had employed to test the products.
"We just don't know (if they are counterfeit) and we are obviously making urgent inquiries," Mr Studdy said.
Richard Lancaster SC, who is representing Estee Lauder's Make-up Art Cosmetics, or MAC, said they had requested information from Target about who supplied the alleged counterfeit products.
He told the court that 34 out of 34 tests performed by Estee Lauder had revealed that the products were counterfeit and had a "different formula altogether".
"It is not our stuff at all," Mr Lancaster said.
The hearing before Justice Arthur Emmett continues.
At 10.00am, shares in Wesfarmers, Target's parent, were down 30 cents, or 0.86 per cent, at $34.76.