Monday, June 30, 2008

Ebay fined over fake goods

Ebay has been ordered to pay 40 million euro by a French court, after it failed to stop transactions on fake "brand" products through its website. The companies are part of the LVMH group, which includes Louis Vuitton, Christian Dior, and Givenchy. The group is suing both for the auctioning of fake luggage and handbags, as well as for the sale of perfumes. There are some more significant concerns as far as the perfumes are concerned, because only authorised retailers are allowed to sell the products. One of the reasons is that perfume can cause allergies or irritation if tampered with, a practice often carried out by street sellers, who mix perfumes and reseal them.

LVMH were satisfied with the decision of the court to fine Ebay and to ban them from allowing any more perfume transactions on their website, as they consider these companies an important part of French business heritage.

However, Ebay spokespersons are not pleased with the ruling, saying that the case was more about LVMH trying to protect its uncompetitive commercial practices, rather than getting rid of counterfeits, an effort that Ebay makes anyway, removing fake copies as soon as they find them on their site. It's a tough decision against Ebay, the second in less than a month.

But should Ebay really be the one fined or should it be the individuals carrying out the sales?

No comments:

Post a Comment