Feeds

L'Oreal sues eBay over counterfeit goods

Says tat bazaar is not doing enough

High performance access to file storage

eBay is being sued across Europe by the world's biggest cosmetics firm for not trying hard enough to battle counterfeiting. L'Oreal is taking the action in five European countries, including the UK.

The cosmetics giant claims that eBay is profiting from the sale of counterfeit goods and is not doing enough to combat fakes. eBay has argued in the past that it always acts in such cases when notified of the sale of counterfeits.

"eBay is not a victim because it gets a cut from each transaction and advertisement, real or fake," said L'Oreal's head of anti-counterfeiting, Xavier Herfroy, according to French newspaper Liberation. The paper said that L'Oreal had estimated the cost to the company of the sale of counterfeit goods ran into millions of euros.

A spokeswoman for eBay France said that the two companies had been in negotiations since May of this year about the issue, but that the companies could not reach an agreement and that L'Oreal's demands were unreasonable, according to news agency Associated Press.

Action has been taken in France, the UK, Germany, Spain and Belgium over cosmetics that are sold under brands such as Lancôme, Giorgio Armani and Ralph Lauren.

The issue of fake goods for sale on eBay is not a new one. Luxury goods group Louis Vuitton Moet Hennessy and iconic jeweller Tiffany's have both taken action against the online auction site over similar claims.

The online auction of fake goods mirrors an explosion in their sale offline as well. The French Government this week seized almost 13,000 handbags and leather goods which were copies of luxury items that it said were worth €12m. It said that French customs officers had seized €224m worth of fake products in the first half of this year.

French businesses and employees have been particularly active in protecting trademarks and battling fake goods. Industrial lobby group the Union of Manufacturers in France filed a lawsuit last year against eBay seeking compensation for its members because of the availability of fakes on the auction site.

"We think eBay is perfectly capable of policing its site, but they offer to take action only after the fact. They refuse to act pre-emptively," Unifab chairman Marc Antoine Jamet told Reuters last year. "We think they have the IT to manage their sites, to track bank accounts and ownership."

Copyright © 2007, OUT-LAW.com

OUT-LAW.COM is part of international law firm Pinsent Masons.

3 Big data security analytics techniques

More from The Register

next story
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
One year on: diplomatic fail as Chinese APT gangs get back to work
Mandiant says past 12 months shows Beijing won't call off its hackers
Lavabit loses contempt of court appeal over protecting Snowden, customers
Judges rule complaints about government power are too little, too late
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Don't let no-hire pact suit witnesses call Steve Jobs a bullyboy, plead Apple and Google
'Irrelevant' character evidence should be excluded – lawyers
EFF: Feds plan to put 52 MILLION FACES into recognition database
System would identify faces as part of biometrics collection
Whoever you vote for, Google gets in
Report uncovers giant octopus squid of lobbying influence
Putin tells Snowden: Russia conducts no US-style mass surveillance
Gov't is too broke for that, Russian prez says
Ex-Tony Blair adviser is new top boss at UK spy-hive GCHQ
Robert Hannigan to replace Sir Iain Lobban in the autumn
Alphadex fires back at British Gas with overcharging allegation
Brit colo outfit says it paid for 347KVA, has been charged for 1940KVA
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.