European court ruling will preserve “aura of luxury”
07/12/2017
The case was brought by beauty product manufacturer Coty against one of its retailers, German company Parfumerie Akzente, which used Amazon to sell Coty products.
The ECJ has deemed that the ban was “appropriate to preserve the luxury image” of the products and that it would not break competition rules by limiting consumer choice.
Luxury goods are exempt from certain competition rules which allow high-end brands to limit sales of their products to stores that uphold their luxury image. This is known as ‘selective distribution’. This ruling could extend this practice to online channels.
“The quality of luxury goods is not simply the result of their material characteristics, but also of the allure and prestigious image which bestows on them an aura of luxury. That aura is an essential aspect of those goods” the ECJ said.
“Any impairment to that aura of luxury is likely to affect the actual quality of those goods.”
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