If the people trying to imitate designer goods thought they could get away with selling their fake goods online, they were wrong — and they pulled eBay down with them. The online auction website settled a long-time court battle with LVMH Moet Hennessy Louis Vuitton, which owns a host of perfume and cosmetic brands, including Dior, Givenchy and Guerlain.
eBay Inc. is working with LVMH to implement measures to combat the sale of counterfeit goods online. A French court ordered eBay to pay 5.7 million euros, finding that eBay had been in the wrong by allowing trade in counterfeit goods.
With the volume of traffic flowing over the Internet, companies should take care to monitor their websites to avoid third-party users from using a company’s website for unlawful activity.