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.