You are in > manchester.com  > News > £31m fine for eBay over fake goods

Business

£31m fine for eBay over fake goods

30/06/2008

A French court has fined online auctioneer eBay €40 million (£31.6 million) in damages to luxury goods retailer LVMH for allowing the sale of counterfeit products.

LVMH group, which includes fashion houses Christian Dior and Lois Vuitton, was seeking up to €51 million (£40.4 million) for "negligence" on the part of eBay.

Louis Vuitton Malletier, the group's hanbag and luggage division, claimed eBay could have done more to stop illegal copies of its goods from being sold through its site.

In addition, four perfume brands - Dior, Guerlain, Kenzo and Givenchy - sued because their products should only be sold through approved retailers.

In a statement, eBay said LVMH was trying to "protect uncompetitive commercial practices at the expense of consumer choice".

The auctioneer added it would appeal.

The fine follows a ruling earlier in the month that eBay was directly responsible for the sale of three Hermes bags, including two fakes, for €3,000 (£2,374).

The French court ordered eBay to pay €20,000 (£16,000) in damages to the luxury group.