The French courts have potentially dropped a bomb onto the online auction sector by ordering eBay to pay fashion giants LVMH $61 million worth of damages for failing to do enough to prevent the sale of counterfeits of the firm’s goods on its site, TechRadar reports.
The ruling could have widespread ramifications for all online auctions sites by not only forcing them to police the activity of their users more closely but also limiting the potential revenue they earn.
LVMH said of the ruling: "This decision represents an important step in protecting brands and products against parasitic practices.”
The outcome follows similar rulings in favour of Hermes and Rolex, all of which could pave the way for a whole host of companies to take action against eBay and its contemporaries.
Alexandre Menais, the attorney in charge of eBay's partnerships with rights owners, stated: "We are going to fight this decision because it is totally ridiculous.”