The online auction site eBay must pay 40m euros in damages to Louis Vuitton Malletier (LVMH) for allowing online auctions of fake copies of its luxury goods. A French commercial court ruled today that eBay must pay 19.28m euros to Louis Vuitton Malletier; 17.3m euros to Christian Dior Couture and 3.25m to perfume brands Dior, Guerlain, Kenzo and Givenchy. eBay said it would appeal the court's decision.
LVMH brought charges against eBay, saying the company's French site failed to stop the sale of counterfeit bags, perfumes and other items. Louis Vuitton Malletier, the group's handbag and luggage section and clothing brand Christian Dior Couture accused eBay of "negligence" in allowing illegal copies of their goods to be sold in online auctions.
Dior, Guerlain, Kenzo and Givenchy sued for "illicit sales" of their perfume products. The companies said that even auctions selling their legitimate perfumes were illegal, as sales are restricted to specialist dealers. Last month eBay was ordered to pay 20,000 euros to the French firm Hermes.