The Daily Telegraph published a story in November claiming that, while at her latest film premiere in London, the Australian film star had publicly acknowledged that her preferred fragrance is Jo Malone, reported Reuters.
Kidman's lawyer, John Kelly, told the London High Courts that the article insinuated that she had blatantly snubbed her contractual agreements to promote the Chanel No 5 fragrance.
"The article also falsely claimed that despite having signed a multi-million pound contract with Chanel, the claimant was openly promoting a competitor's product and 'kept dabbing the Jo Malone perfume on whenever she had a moment'," said Kelly.
The Daily Telegraph said that it accepted the allegations in the article were untrue and has apologized to Kidman for any distress and embarrassment the it might have caused.
The news comes just a week after US film and television star Teri Hatcher was named in a lawsuit taken out by skin care specialist Hydroderm over allegations she had breached a contract to promote its products.
In a suit filed in the Los Angeles Superior Court, Hydroderm claims that Hatcher violated an exclusive marketing contract by endorsing a lip enhancer developed by City Cosmetics, which was in direct competition with one of its products.
Hydroderm alleges the actress had struck a deal that prevents her from endorsing cosmetics marketed by its competitors.
The company had paid $2.4m to Hatcher to endorse its products and now wants the money back along with an additional $406, 952 that it claims to have incurred in costs related to the deal.
With fragrance and cosmetic star sponsorship continuing to be a highly fruitful marriage, the loyalty of a star to a particular brand is also vital from a marketing point of view.
However, as has been demonstrated in these two most recent court cases, relations can turn sour if contracts are not respected.