eBay Asked to Pay $63M in Fraudulent Merchant Suit

In a relatively significant ruling, a French court has asked EBAY (EBAY) to pay $63 million in damages to LVMH for fake luxury goods sold by third-party merchants on the platform. Interestingly, the court also banned any EBAY merchants from selling four perfume brands.

As expected, EBAY said it would lodge an appeal and said the decision was not a victory for copyright law. "This decision is not based on combating counterfeit material. It is based on LVMH's desire to protect its commercial practices and exclude competition," said a spokeswoman for EBAY.

Comments

[WTJ:]

It's about time somebody put a prod up ebay's arse abput the thieves that they give quarter to!

Why isn't the US Attorney General doing his share?

2008 Jul 02 01:52 PM

[xebayaddict:]

What's interesting is the fact that eBay provides buyers with sponsored links to websites selling fake LV bags, Nike shoes etc. They say they've done so much to combat fake items being listed on the site yet they are willing to take money from other websites selling fake goods. If you do a search for a Louis Vuitton bag on eBay UK sponsored links at the bottom of the page will take you to sites selling fake product from China. Wow, the hypocrisy never ends.

2008 Jul 07 10:06 AM

[Joe Lin:]

I don't get why LV / Gucci can't tackle their own problem, but instead blame their problems on another company. eBay provides a channel for people to buy and sell on the open market. Just like newspaper classified, poster at a super market bulletin board, TV, Radios, or between friends. eBay is not a buyer or seller. They are the medium that connects them to complete the sales. How are they held liable for LV/Gucci's problem, which had been around for a long time.

Not allowing companies like eBay to act as a medium for people to resell expensive products like LV or Gucci translate to their products having no resell value. Once you bought the stupid overpriced bag, you have no way of reselling it. The bag is literally worthless after you walk out the door. There is no longer any reason to spend thousands of dollars on such piece of crap just to show off to your friends.

2008 Jul 07 05:42 PM