Sesame Workshop, the group behind “Sesame Street,” has filed a lawsuit against major online retailers like Amazon, Walmart, and eBay. The legal action, started on March 3, 2025, aims to stop these companies from selling fake versions of Sesame Street toys and merchandise. The company says that counterfeit items featuring characters like Elmo and Big Bird are hurting its reputation and confusing customers. Sesame Workshop is asking the retailers to remove these products or pay $150,000 for each fake item sold, according to court papers filed in Illinois.
The lawsuit points out that these online platforms allow third-party sellers to offer knockoff goods, which look like the real thing but aren’t. This causes problems for shoppers who expect quality products and for the logistics chain that moves them. Sesame Workshop claims it’s losing trust because of these fakes, and it wants the retailers to take stronger steps to check what’s being sold. The case could affect how big e-commerce sites handle counterfeit items, a growing issue for shipping and delivery companies too.