L'Oréal is Suing eBay over Sales of Counterfeit Perfumes {The 5th Sense in the News}

The French newspaper Libération announced that in August L'Oréal had launched a legal action against the auction site eBay as they allow sales of "counterfeit perfume bottles". This decision was announced on September 8 2007 and comes as the outcome of stalled negotiations between L'Oréal and eBay......

L'Oréal considers that the series of discussions did not lead to any concrete actions on the part of eBay. Lawsuits have been filed in five European countries: France, Germany, Great Britain, Belgium, and Spain.

eBay responded on September 10 by saying that they were "very disappointed" that it had to come to this outcome, but that they thought that L'Oréal's demands were "unreasonable". eBay, for example, does not want to close down entire categories of products, while l'Oréal points out that they did just that for ivory and medications.

L'Oréal is also criticizing them for not wanting to change their model, which is to react after the fact and to count on the brands to bring problems to their attention, on their own time. eBay is now the fourth biggest distributor of goods in the world, which as Libération points out, makes it more than the simple "technical intermediary" it used to say it was.

Neither parties exclude going back to the negotiation table. 

(Sources: Libération, FashionMag.fr, Images Business Week)

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