A lawsuit brought by Hermes against eBay is currently winding its way through the French legal system. The parties recently convened before the court in Troyes (North-eastern France) at which time attorneys for Hermes laid out the French luxury brand's arguments against the online trading site and the basis for it's claim in damages. The underlying facts of the lawsuit involve the sale by an eBay customer of three Hermes bags, two of which turned out to be counterfeit. Hermes' position is that despite claims to the contrary, eBay is a direct participant in the sale of the counterfeit goods not only because they offer counterfeit traders a platform for their fraudulent transactions but also because eBay provides a number of services designed to enable the transaction. The key argument however is that eBay makes a commission on the sale of each counterfeit good sold on its site thereby making it a participant in the fraudulent transaction and not merely a passive host.
As noted by The Luxe Chronicles back in October 2007, Hermes' lawsuit against eBay marks a toughening of the French luxury brand's stance towards the online trading site. Previously, Hermes' policy had been to join suits brought by eBay's disgruntled customers relating to counterfeit Hermes products rather than to sue eBay directly. A court ruling is expected in June. Should the court rule in favor of Hermes, this could force eBay to significantly revise its business practices. A ruling against eBay in this suit may also have important repercussions in two other suits pending against eBay before the Tribunal de commerce de Paris brought by Louis Vuitton and Dior Couture respectively on similar grounds. (Source)
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