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EBay found liable for counterfeit goods

Daniel Fleshbourne   on 09 June 2008 - 11:11 · 26 comments & 13581 views

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EBay has been hit with a €20,000 fine after being found liable for counterfeit goods sold on its site. The landmark ruling, which is the first in a long line of such lawsuits, may set a precedent that puts liability on eBay for all counterfeit goods sold on its site in the future. In the latest case a French court found in favour of French luxury group Hermes.

While eBay has consistently honoured takedown requests on counterfeit items, the ruling does not bode well for future lawsuits. EBay is also known to be in the crosshairs of Tiffany and Louis Vuitton, among others. Portero.com, an online auction marketplace that authenticates branded luxury products, estimates that as much as $15bn, or 10 per cent of the branded luxury goods sold globally, are counterfeit.

View: The full story @ vnunet

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(2 replies) #1 Baptist on 09 Jun 2008 - 11:29
This will cost them ALOT of money! Because this is just the start of the snowball & the hill is long!
#1.1 BBinder on 09 Jun 2008 - 14:14
well they can afford to pay the fines after all they do rip all there users off
#1.2 Qumahlin on 09 Jun 2008 - 22:37
(BBinder said @ #1.1)
well they can afford to pay the fines after all they do rip all there users off


Then don't use their service. Simple as that. Bottom line is that a ruling like this does nothing but put every online auction house at risk. It's not feasible for a "open" online auction house with as many items as ebay to check the authenticity of every item since they are not physically in their possession.

All this means is that Ebay and other sites will start banning the sale of heavily counterfeited merchandise. So instead of you getting a fake Rolex you just won't see Rolex's for sale on ebay

#2 +M2Ys4U on 09 Jun 2008 - 12:36
this is rediculous.
(1 reply) #3 Rudy on 09 Jun 2008 - 12:53
wtf? how are they supposed to regulate that?
#3.1 PatrynXX on 11 Jun 2008 - 06:42
Well there's counterfeit then there's generic. I have a generic Dell laptop battery. not quite as good as the real thing.

But I also got an obviously counterfeit Nokia cell phone battery for a $1. Hey it works. Course it's my risk if I wanna blow a hole in my pants

There's always all those copies of Windows 98 that look legit, but quite clearly they look like they aren't whoops
(1 reply) #4 +TCLN Ryster on 09 Jun 2008 - 12:58
I dislike ebay (and paypal) as much as the next man, but how can ebay be held responsible for the authenticity of the items being sold through it? How can they physically inspect every item someone posts up on ebay? That like holding a newspaper responsible for someone putting in a classified advert for counterfeit DVDs.

As long as ebay make it clear in their terms that selling illegal or counterfeit goods is not permitted (which I'm fairly sure they have always done), I don't see what else they could do.
#4.1 sphbecker on 09 Jun 2008 - 13:48
I agree to some extent, but in many cases there is more eBay could be doing. I don't know about "luxury items" because I have never bought any from eBay, but I have bought a number of DVDs and know that eBay turns a blind eye to piracy. In many cases when you search for a DVD you will find a number of auctions for a "Chinese" version, they will claim it is the same content with Chinese subtitles that can be turned off. Sounds reasonable at first, paying less for a different SKU intended for a furan market. The fact is that in almost every case there is no licensed Chinese version, meaning that anything claiming to be a Chinese version is counterfeit. Because most sellers admit it is not the retail version eBay could easily filter these and stop the auctions, but they don’t.
(3 replies) #5 GreyWolfSC on 09 Jun 2008 - 13:26
Whoever wrote the article seems to have capitalization issues... Is it "ebay", "eBay", or "EBay"?
#5.1 vetneufuse on 09 Jun 2008 - 14:54
(GreyWolfSC said @ #5)
Whoever wrote the article seems to have capitalization issues... Is it "ebay", "eBay", or "EBay"?


Legally, it's eBay, but no one seems to care as editors always alter it to something else or go off the wall like this with inconsistant names
#5.2 +Dakkaroth on 09 Jun 2008 - 15:29
Actually, if you look carefully, there's only a capital E when eBay is the word at the beginning of the sentence.
#5.3 +TCLN Ryster on 09 Jun 2008 - 17:04
Well their logo says ebaY
#6 OPaul on 09 Jun 2008 - 13:32
Excellent news IMO.
#7 sphbecker on 09 Jun 2008 - 13:54
I blame all these fly-by-night authors who write a get rich quick book on how to make money on eBay. Years ago I was a big fan of eBay but recently I refuse to buy anything with it unless I have no other option. There are too many sellers out there trying to rip you off. Yes you can normally get your money back, but it takes hours and hours of work. For eBay's own sake they should clamp down on these things, but I'm glad to see them get their hand slapped.
(1 reply) #8 C_Guy on 09 Jun 2008 - 15:06
And this is eBay's fault....how?

Oh that's right it's the consumer's unwillingness to research their own purchase decisions! This is really becoming a problem. I really wish these people would get a job and contribute to society rather than sue, sue, sue.
#8.1 Captain555 on 09 Jun 2008 - 15:25
This is a bad judgement. It will be overturned. In Europe they can now appeal to the EC court.

If they don't overturned this, eBay will just prevent Europe to participate on eBay.
#9 macrosslover on 09 Jun 2008 - 15:24
somehow I knew this would come out of France.
#10 Dessimat0r on 09 Jun 2008 - 17:46
I got a counterfeit 2GB Memory Stick Micro from eBay. It doesn't work properly.
#11 Skwerl on 09 Jun 2008 - 19:48
What?! French courts have ruled against a US company? Say it's not so! No one saw this coming!
#12 James Riske on 09 Jun 2008 - 20:01
Anything negative that happens to ebay is definitely good news.
#13 bucko on 09 Jun 2008 - 20:13
Here's a tip, don't buy from eBay lol, seriously I really don't like it with all the scammers on there, and I hate it when people list the same item a million times, the feedback system is all wrong i'd rather just buy my stuff new from an online store much less hassle.
#14 RAID 0 on 10 Jun 2008 - 01:19
Who the hell buys "High quality merchandise" off eBay?
"Awww, you mean the Tiffany Cuff-links I bought off the Internet are fake?" People trying to save a little money end up getting screwed in the anus. If they were not so cheap, they'd paid a little more... and we wouldn't be having this discussion.

#15 bravo369 on 10 Jun 2008 - 04:03
I think this could really work out for ebay. By forcing them to make themselves legit, more users might want to come. Ebay has become unusable because of fake stuff and scammers. also with the fees and such, everyday users really don't make out if they use ebay. it's become a business where only major powersellers are around.
#16 jwjw1 on 10 Jun 2008 - 07:05
Good!...eBay and any other online service should take responsibility for their content...its no excuse to say...how can they regulate all that...they make money off people and people shouldn't be scammed because eBay doesn't know their business.
#17 Mekun on 10 Jun 2008 - 07:21
I quit using ebay. To many damn resellers trying to snipe everything so they can resell for a small profit. F off.

I buy from online stores with no bs.
#18 DrScouse on 10 Jun 2008 - 07:36
€20,000 fine.. wow.. that'll hurt them and make them think twice about oding it again....

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