Target left blushing over MAC make-up case A counter at Target displaying the fake MAC cosmetics. Target has all but run up the white flag and offered to settle its court battle with US cosmetics giant Estee Lauder over its sale last year of allegedly counterfeit MAC make-up. In the Federal Court on Tuesday Target made an offer to Make-Up Art Cosmetics, a subsidiary owned by Estee Lauder, to settle the case brought against it when it was discovered that Target was selling what was claimed to be fake MAC products. However, Target has not admited guilt nor accepted that its MAC cosmetics were indeed counterfeit. It is believed Estee Lauder is eager for Target to admit the products it sold were fake, and its refusal to do so in the offer this morning might lead it to reject Target's settlement. Estee Lauder is especially concerned about the reputation of its brands, and the potential damage done to its standing among customers flowing from what it viewed as poor quality cosmetics sold falsely under the MAC brand. It is understood one MAC product range sold by Target last year was sold as having sunscreen protection but in fact had none, or very little. In documents issued in court, Target has offered to hand over all promotional, marketing and advertising material related to its sale of MAC still in its possession, including catalogues, brochures and signage. Target has promised not to infringe any of MAC's trade marks by importing, distributing, advertising or offering for sale any goods bearing the cosmetics company's name. It will account to MAC for the profits it made last year when it offered for sale MAC make-up at up to a 40 per cent discount to normal prices, including interest, and has offered to pay MAC's costs of the court proceedings. Estee Lauder, which owns MAC, is yet to decide if it will accept the offer. The damaging court battle against Target, one of Australia's biggest retailers, was triggered when in September last year Target was forced to strip its shelves of MAC - Australia's biggest-selling prestige cosmetics range - after Estee Lauder claimed the make-up was fake. The case was quietly cheered on the sidelines by departments stores Myer and David Jones who both have the exclusive license to sell MAC in Australia and were not pleased that a store like Target was advertising its own range of MAC products at vastly reduced prices. Target, owned by Perth-based conglomerate Wesfarmers, sourced the MAC range from a number of Australian importers and wholesalers. Under the offer made to Estee Lauder in court Target promised not to source products from these companies. Target, which last week made 260 of its staff at its Geelong corporate headquarters redundant due to a downturn in its business, has traced the allegedly fake MAC cosmetics back to a wholesale company in Texas and is pursuing it through the US courts to discover whether the MAC goods were fake or genuine.