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Thursday, 21 August 2008

eBay fined $66m for flogging fakes

1/07/2008 8:50:00 AM.  | Richard Maxton
Online auction site eBay has been ordered to pay almost $66 million dollars in damages to fashion brand Louis Vuitton for selling fake luxury goods online.

The Paris court ruled in favour of six LVMH brands which accused eBay of putting fake handbags, clothes, perfumes and other luxury goods in a case that started a year and a half ago.

The world's biggest online auctioneer was ordered to pay 19.28 million euro ($21.86 million) to LVMH and 17.3 million euro ($28.56 million) to sister company Christion Dior Couture for damage to their brand images and causing moral harm.

eBay must also pay 3.25 million euro to perfume brands Christion Dior, Kenzo, Givenchy and Guerlain and has been barred from advertsising the brands on its website.

LVMH argued eBay, which said it will appeal the decision, did not do enough to stop the sale of counterfeit products and did not have permission to sell its authentic goods.

The ruling comes amid a surge of legal action against the online giant, including a complaint from France's traditional auctioneers accusing eBay of encouraging trade in pirated and stolen goods.

According to eBay the total value of items sold on its trading platforms in 2007 was nearly $US60 billion ($A62.5 billion).

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