Perfume costs eBay $2.6 million

 

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By Stuart Turton

Posted on 1 Dec 2009 at 08:24

A court has fined eBay $2.6 million for violating an injunction preventing the auction site from trading Louis Vuitton perfumes and cosmetics.

The fine was handed down by the Commercial Court of Paris, which reported 1,300 incidents of LVMH goods being traded on eBay since the injunction in 2008.

LVMH owns brands including Christian Dior, Guerlain, Givenchy and Kenzo, and brought the case against eBay after complaining about the sale of counterfeit goods on the site. However, the ban covers the sale of all LVMH goods on the site.

"This decision constitutes an important step in the fight against unlawful practices," said LVMH.

"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," says LVMH in a statement.

EBay has protested that the fine was too high. "Today's outcome hurts consumers by preventing them from buying and selling authentic items online," says Alex von Schirmeister, the general manager of eBay France.

"The injunction is an abuse of 'selective distribution'. It effectively enforces restrictive distribution contracts, which is anti-competitive. We believe that the higher courts will overturn this ruling," he adds.