Sunday, December 6, 2009

Ebay Takes a Downfall

By: Brittany Gropp

THE POPULAR ONLINE BIDDING SERVICE, EBAY, TOOK A DOWNFALL THIS MONDAY . THE COMPANY WAS FINED 1.7 MILLION EUROS BY THE COMMERCIAL COURT OF PARIS FOR NOT OBEYING A JUNE COURT ORDER.

THE FINE STEMS FROM 1 OF 3 LAWSUIT BROUGHT BY LVHM TO EBAY. LVHM BEST KNOWN FOR CONTROLLING HIGH END FASHION BRANDS LIKE LOUIS VUITTON AND CHRISTIAN DIOR.

LVHM IS ACCUSING EBAY OF UNLAWFUL SALE OF THEIR PERFUME PRODUCTS, AND AS MARKETING OFF COUNTERFEIT ITEMS.

LAST JUNE, EBAY WAS ORDERED TO PAY 3 MILLION EUROS FOR ITS VIOLATION OF DISTRIBUTION NETWORK AGREEMENTS. THAT FINE WAS PLACED ON TOP OF THE 33.5 MILLION EUROS THEY WERE ALSO CHARGED WITH FOR COUNTERFEIT SALES.

IN ADDITION, EBAY WAS ORDERED TO STOP SALES OF GENUINE PERFUMES TO FRENCH BUYERS AND WAS TOLD IT WOULD BE ISSUED A 50,000 EURO FINE PER DAY FOR EVERY TIME ONE OF THE PRODUCTS WAS FOUND ON A FRENCH CONSUMER SITE.

THE 1.7 MILLION EURO FINE ORDERED MONDAY IS A DIRECT RESULT OF THIS ORDER.

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