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Luxuries Dealer Sues eBay over Knockoffs

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Luxuries Dealer Sues eBay over Knockoffs

Business

Luxuries Dealer Sues eBay over Knockoffs

Luxuries Dealer Sues eBay over Knockoffs

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A court in Paris ordered online auction site eBay to pay $61 million to luxury goods maker LVMH for allowing the sale of fake merchandise. LVMH, the world's biggest owner of luxury brands, including Louis Vuitton and Dior, says at one point, 90 percent of Vuitton and Dior-labeled itmes on eBay were counterfeit.

ARI SHAPIRO, host:

NPR's business news starts with e-Bay versus the luxury brands.

(Soundbite of music)

SHAPIRO: A court in Paris has just ordered e-Bay to pay $61 million to luxury goods maker LVMH. LVMH is the world's biggest owner of luxury brands, including Louis Vuitton and Dior. It sued the online auction site for not doing enough to stop the sale of counterfeit goods. LVMH says, at one point, 90 percent of the Vuitton and Dior labeled perfumes, watches and handbags on e-Bay were counterfeits. E-Bay has appealed the decision. The company says it's doing all it can to deal with the problem of fakes. Earlier this month, another French court also ruled against e-Bay after the French luxury goods maker Hermes sued e-Bay for selling fake handbags.

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