LVMH deals eBay another blow
30/06/2008
For the second time in a few weeks, online auction site eBay has been handed a heavy fine by a court in France.
This time, six brands in the LVMH Group combined to sue the site for allegedly allowing users to buy and sell counterfeit copies of their goods. This included Louis Vuitton leather bags, as well as Christian Dior clothes and perfume from Dior, Guerlain, Kenzo and Givenchy.
The court in Paris dealt out a much heavier fine than in a recent case involving rival luxury brand Hermès. On that occasion, the judge ordered eBay to pay €20,000 in compensation. This time, the court has asked it to hand over almost €40 million.
The online auction company said immediately that it would appeal the decision, but in a statement, Pierre Gode, a member of LVMH’s supervisory committee, said it was “an answer to a particularly serious question, on whether the internet is a free-for-all for the most hateful, parasitic practices”.
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