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EBay spanked for sales of luxury goods

fendiThe online auction site EBay will have to pay $61 million to LVMH Moet Hennessy Louis Vuitton SA, home of brands such as Fendi and Marc Jacobs, after the company claimed EBay hadn't done enough to prevent sales of counterfeit goods, according to the Associated Press.

According to court documents cited by Bloomberg News, 90% of the Louis Vuitton and Dior-labeled perfumes, watches and handbags on EBay were fakes. 

A spokeswoman for eBay said they plan to appeal, and the protesting brands disapprove of the site's sales techniques even for legitimate goods, because it allows them to distributes products directly to consumers without going to exclusive shops.  

This isn't the first time EBay has been sued --- Tiffany, Rolex and L'oreal have all taken the auction site to court. The site relies on the companies to report when counterfeit items are posted for sale.  

According to Bloomburg News, the ruling also bars the sales of the company's perfumes on eBay.  

(photo: Gene Sweeney Jr./Baltimore Sun) 

Posted by Liz Kay on July 2, 2008 11:08 AM |
                    

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A native of Vietnam, Dan Thanh Dang has lived in Maryland most of her life and has been a Baltimore Sun reporter since 1990. She's written about everything from mayoral elections and murder to energy prices and online dating. These days, she writes about a topic she's all too familiar with, spending money -- how to save more of it, blow all of it, use it wisely and avoid getting ripped off in the process.
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