eBay's Fight Againt Fraud

eBay claims victory in counterfeit case

UK courts rule in favour of auction site in L'Oreal case

Shaun Nichols in San Francisco

vnunet.com, 22 May 2009

eBay won a legal victory on Friday when a UK court sided with the auction site in a counterfeit goods case.

The judges ruled that the company could not be held liable for a series of auctions in which counterfeit L'Oreal products. The cosmetic maker was suing to prevent all sales of its products on eBay.

The UK High Court ruled that while eBay could do more to prevent the sale of counterfeit goods, the site does not encourage the sales of such items. eBay's own records suggest that of its 2.7bn auctions last year, 0.15 per cent of items sold were counterfeit.

"This is an important judgment because it ensures that consumers can continue to buy genuine products at competitive prices on eBay," said Richard Ambrose, head of trust and safety for eBay.

"When companies try to prevent genuine items being sold through the internet they demonstrate that they are out of step with consumers, how they use the internet to shop and, at this time when every penny counts, the importance of shopping around to get the best price."

The suit is one of several which the French cosmetics maker has brought against eBay. The auction service claimed similar victories in France, Belgium and the United States.