LVMH Moet Hennessy Louis Vuitton is tired of counterfeiters getting rich knocking off its brands and it wants eBay to do something about it.
According to a lawsuit filed by the manufacturer against eBay in France, sellers on the auction site have repeatedly sold items advertised as Louis Vuitton and Dior originals when, in fact, they are counterfeits.
The manufacturer claims it found 150,000 ads for Louis Vuitton handbags and another 300,000 for Dior items on eBay. Ninety percent of the items, it claims, were frauds.
"We're baffled, quite honestly, by some of what's going on, and we plan a vigorous defense of the lawsuit," said Hani Durzy, a spokesperson for eBay.
Mr. Durzy told MarketWatch it's up to manufacturers and retailers to make sure that legitimate items and not counterfeits are sold through the eBay service. "We believe this is nothing more than an attempt by these companies to shirk their own responsibilities to police their own brands," he said. "What we do is already above and beyond what we're required to by law."
EBay has faced a similar situation before with a suit brought against it by Tiffany Co. That suit has yet to be resolved.
Discussion Question: Who is responsible for the counterfeit goods sold on eBay?