EBay ordered to pay €38m to LVMH

EBay must pay €38.6m to LVMH over the sale of fake branded replicas

EBay has been ordered to pay €38.6m to French luxury goods group LVMH over the sale of fake branded replicas on its auction site.

LVMH was seeking €50m after claiming that eBay was negligent and had not done enough to prevent users selling fake versions of its products.

The luxury goods company alleged that nine out of 10 LVMH-branded sunglasses, perfume and bags for sale on eBay in 2006 were counterfeit.

The payout is split between the LVMH group, its subsidiary Christian Dior Couture and four related perfume brands, Christian Dior, Kenzo, Givenchy and Guerlain.

Earlier this month, eBay was ordered to pay Hermes €20,000 for the same offence, which many said would set a precedent for further cases, something clearly evident in the latest ruling.

EBay stressed that it has consistently honoured takedown requests on counterfeit items, but is still facing legal action from the likes of Tiffany and L'Oreal.

The auction firm has announced its intention to appeal against the decision. "Today's ruling is not about our fight against counterfeits," the company said.

"Today's ruling is about an attempt by LVMH to protect uncompetitive commercial practices at the expense of consumer choice and the livelihood of law-abiding sellers that eBay empowers everyday. We will fight this ruling on their behalf."