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French firm Jeantet Associés has scored a €40m win for retailer LVMH after a French court ruled that auction site Ebay failed to block the sale of counterfeit LVMH goods.
French firm Jeantet Associés has scored a €40m (£31m) win for luxury goods retailer LVMH, after a French court ruled that online auction site Ebay failed to block the sale of counterfeit LVMH goods.
Ebay will appeal the controversial ruling. The decision could damage its business model by suggesting the company is responsible for the counterfeit goods that appear on its website. The company issued a strongly-worded statement following the decision.
“If counterfeits appear on our sites we take them down swiftly, but today’s ruling is not about our fight against counterfeit, today’s ruling is about an attempt by LVMH to protect uncompetitive commercial practices at the expense of consumer choice and the livelihood of law-abiding sellers that eBay empowers everyday.”
Name partner of Alain Bensoussan Avocats and internet specialist Alain Bensoussan acted for Ebay. The company said that it invests more than $20m (£10m) each year to ensure counterfeit goods are found and removed, but that it is not legally obliged to do so.
The decision from the Tribunal de Commerce comes weeks after another French court ordered Ebay to pay €20,000 (£15,000) to luxury goods group Hermès in a similar dispute.