eBay responsible for selling fakes but fines cut

LVMH (Louis Vuitton Moët Hennessy) and eBay have been fighting in the courts for a number of years and the internet auction site has been accused of not doing enough to fight the sale of fakes on its website.

Ruling follows 2008 judgement​

This latest ruling from the Court of Appeal follows a ruling in June 2008 when the Paris Commercial Court instructed eBay to pay damages of nearly €40m.

In addition, the 2008 ruling gave LVMH the right to restrict the distribution of perfumes from its Dior, Guerlain, Givenchy and Kenzo brands.

A further legal case brought in December 2009, saw eBay fined a further €1.7m for failing to stop the advertising of Christian Dior, Kenzo, Givenchy and Guerlain perfumes on its sites.

The problem with these fragrance products was not that they were fake, rather LVMH claimed that eBay should no longer be allowed to provide a platform to sell even authentic fragrance goods from these brands as it infringed on exclusive contracts with retailers.

eBay responsible for fake products on site ​

Last week’s ruling from the Court of Appeal underlined the responsibility of eBay to ensure products sold on its websites are not fake.

However, the damages the company is required to pay went down to €5.7m, leaving eBay in line for a significant reimbursement from LVMH, which has led eBay to claim victory.

LVMH has also claimed victory following the decision underlining that the Court of Appeal recognised eBay was liable for selling fakes as well as confirming its right to selective distribution for certain products.