02 July 2008

FR - EBay to pay out millions over French counterfeit sales

(OUT-LAW News)
>Online auction site eBay has been fined £31.5 million and ordered to forbid the sale of some luxury perfumes in a French court order designed to battle the sale of counterfeit luxury goods. Handbag, clothing and perfume company Louis Vuitton Moët Hennessy (LVMH) sued eBay in the French courts, claiming that the company did not do enough to combat the sale of counterfeits of its goods. EBay claims that it cannot police all the sales through its site and that it makes no guarantee that goods are genuine, and that it suspends counterfeit auctions when notified of them. The French court, though, found "serious faults" in eBay's processes that led to auctions of counterfeit goods going ahead. By allowing the sales, it said, eBay had damaged the reputation of luxury brands such as Louis Vuitton and Christian Dior.