Ebay In Trouble With Louie
LVMH Moet Hennessy Louis Vuitton said Monday that a French court fined eBay €1.7 million ($2.6 million) over perfume listings, despite filtering technology that the online auctioneer said is screening out unlawful items. This same Paris court fined eBay €40 million ($80 million in the US) in June 2008. LMVH said then that eBay hadn’t taken the necessary steps to bar counterfeit goods from auction listings, but even LMVH’s authentic products are forbidden from listings, because of the company’s distribution arrangements with other retailers. Ouch! More after the jump…..eBay said in a statement Monday that it has taken steps to hide LMVH products from French shoppers and that the illegal listings LMVH submitted contain misspelled brand names or only pictures of products, which enabled them to slip through the cracks.
Alex von Schirmeister, eBay’s general manager in France, added that the fine is disproportionate given the company’s compliance, and that the decision enforces “anti-competitive” distribution practices.
LMVH, also in a statement, called the decision “an important step” against unlawful practices. “Selective distribution ensures the security and quality of products for consumers. It generates numerous jobs and contributes to the ongoing world-wide success of European luxury goods brands,” it said.
Via: Wall Street Journal