eBay fined for not stopping sale of LVMH perfumes
The Paris Commercial Court has fined the company €1.7m for failing to stop the advertising of Christian Dior, Kenzo, Givenchy and Guerlain perfumes on its sites.
Back in June 2008, the company was called to pay nearly 40m in fines for not doing enough to stop the sale of fake luxury goods on its websites.
In addition, LVMH argued eBay should no longer be allowed to provide a platform to sell even authentic fragrance goods from the four brands as this infringed on exclusive contracts with retailers.
During the 2008 ruling, LVMH’s arguments were upheld and eBay was asked to ensure these products no longer appeared on its auction site.
According to the Paris Commercial Court, eBay has not managed to stop the sale of branded goods, therefore not complying with the injunction, and has been called upon to pay damages.
eBay has referred to the fine as ‘disproportionate’ as it claims it complied with the injunction.
‘Anti-competitive’ action from LVMH
eBay claims the action is anti-competitive on the part of LVMH.
“Today’s outcome hurts consumers by preventing them from buying or selling authentic items online. The injunction is an abuse of ‘selective distribution’. It effectively enforces restrictive distribution contracts, which is anti-competitive,” said general manager of eBay in France Alex von Schirmeister.
According to LVMH selective distribution protects the security and quality of products for consumers. It argues that it creates jobs and ‘contributes to the ongoing worldwide success of European luxury goods brands’.
However, eBay maintains the ruling will be overturned.
“We believe that the higher courts will overturn this ruling and ensure that eCommerce companies such as eBay will continue to provide a platform for buyers and sellers to trade authentic goods,” von Schirmeister said.