French court fines eBay US$2.5 million

The court found the online auction site has failed to comply with an earlier injunction

A French court has fined eBay €1.7 million (US$2.5 million) for failing to comply with an earlier ruling that required the online retailer to prevent the sale of certain brands of perfume to French consumers on its sites.

The ruling is related to one of three lawsuits brought by LVMH, a company that controls brands including Christian Dior, Louis Vuitton and Givenchy.

The suits charged eBay with unlawful marketing of perfume brands that included Christian Dior, Kenzo and Givenchy as well as the sale of counterfeit items on eBay.

In June, the Commercial Court of Paris ordered eBay to pay damages of €35.5 million related to the cases about counterfeit sales and €3.05 million for unlawfully selling items in breach of selective distribution network agreements.

LVMH uses such agreements to limit the sales of its products to selected outlets.

The court also issued an injunction ordering eBay to stop allowing the genuine products to be sold to French consumers and said it would issue a €50,000 fine per day each time one of the products is found on an eBay site accessible to French consumers.

The Monday ruling fines eBay for failing to comply with the injunction.

EBay says that it uses state-of-the-art filtering software to check the millions of listings it receives daily for products bearing the LVMH brands. Between July 2008 and July 2009, eBay blocked and removed more than 20,000 listings, it said.

EBay has appealed all three of the cases with hearings for the cases scheduled in May.

In a statement, eBay said it believes the higher courts will overturn the ruling. "The injunction is an abuse of 'selective distribution'. It effectively enforces restrictive distribution contracts, which is anti-competitive," Alex von Schirmeister, general manager of eBay in France, said in a statement.

LVMH lauded the court's decision. "Selective distribution ensures the security and quality of products for consumers. It generates numerous jobs and contributes to the ongoing worldwide success of European luxury goods brands," it said in a statement.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags legalebayFrance

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Nancy Gohring

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?