US cosmetics and fragrance giant Estee Lauder has launched legal action against Target Australia, claiming it is selling counterfeit M·A·C Cosmetics at its stores.

Estee Lauder is seeking to protect its brands as well as the official distributors of the cosmetics in the market such as leading department stores Myer and David Jones.

A counter at Target displaying the allegedly fake MAC cosmetics.

A spokeswoman for Target confirmed to BusinessDay that the distribution of fake M·A·C product was now the subject of a legal case after the company's US laboratories discovered Target was selling fake cosmetics under the popular M·A·C branding.

The spokeswoman said she was constrained as to what she could say on behalf of the company because of the legal action, adding that Estee Lauder had launched its suit in an Australian court.