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Where’s the Line ?

Right and wrong in a for-profit world

Where Should eBay Draw the Line Against Fakes?

July 10th, 2008 @ 11:09 am

6 Comments

Categories: Ethics

Tags: eBay Inc., E-business/E-Commerce, Branding, Viruses And Worms, Internet, Marketing, Security, Michael Mattis

Louis Vuitton HandbagLast week, online auction giant, eBay, said it would appeal a $63 million ruling against it by a French court, which found the company liable for facilitating the sale of counterfeit luxury goods, including the famed Louis Vuitton signature handbags. The suit was brought by LVMH Group, which owns the upscale accessories brand Louis Vuitton, Moet & Chandon bubbly and Hennessey cognac. (That’s almost too much luxury for one company.)

In its statement about the appeal, eBay said that the ruling “represents a loss not only for us but for consumers and small businesses selling online.” The company also pointed out that it spends “$20 million” each year on combating counterfeiters. (EBay netted $348 million last year on earnings of $7.67 billion.)

But where’s the line? Husslers selling bootleg DVDs on the street are rounded up and unceremoniously thrown in the slammer. Small-time pawn brokers caught “fencing” stolen goods get similar treatment, sometimes whether they know the items are stolen or not. The law rarely spares mom-and-pop merchants dealing in counterfeits. And the “file-sharing” service, Napster, pretty much got run out of town on a rail.

Why should eBay, which in essence brokers relationships between buyers and sellers, be treated any differently just because it’s bigger, richer, public and online? Or do we live in caveat emptor kind of world?

What would you do if you were eBay’s new CEO, John Donahoe?

(Handbag courtesy Louis Vuitton)

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  •  
    1

    hifistyle1

    07/11/08 | Report as spam

    ebay and fake products

    My preception is that they'll continue to make money on fees while they let their lawyers tie it up in court for years.

  •  
    2

    Michael.Mattis@...

    07/11/08 | Report as spam

    Agreed

    You're no doubt right about that.

  •  
    3

    sbrennaman354

    07/11/08 | Report as spam

    Cab eBay Draw a Line?

    Can eBay draw a line and stay in business? Since on-line auctions are virtual and no one can ???inspect??? the products auctioned/sold on-line except through the occasional picture, eBay and the consumer/purchaser are taking a great deal on faith. The comparison of eBay to a pawn broker and a fence is unfair. EBay is truly a facilitator of a commercial transaction between a provider and a buyer. Caveat emptor applies in this situation as well as in real-time sales (except when the sale is purposely a purveyance of stolen or fake goods ??? fraud at best). If I were eBay I would try to place some controls on the auctioned items that are susceptible to being ???fakes??? or unauthorized reproductions. This could well spell big expenditures by eBay. Another thought: Where do the fakes come from in the first place? Best guess they are seconds that were ???left??? by the back door for disposal.

  •  
    4

    compliant1

    07/11/08 | Report as spam

    Fake bags on Ebay

    Ebay is right to appeal the ruling- it is legally untenable and largely a PR move for LV. I would venture that 98% of the customers that buy fake LV bags on Ebay would never be able to pay $3000 for a "real" LV handbag. LV is not losing money on these transactions. They agressively market to young urban hipsters who do not have the disposable income to buy their products. This lawsuit is a tactic to cement their status as a standard bearer for luxury that is unattainable to most. However, without fake bags, much of their client base would never have heard of LV before coming into wealth. LV publicizes the fake bags in order to make the "real" thing more aspirational. They can't prove any true damage from Ebay's sale of fake bags, since it only helps them. This is about PR, and I find my tax dollars being used to tie up the overcrowded courts for a billion dollar company to get press more offensive than any college student toting a fake handbag she bought on Ebay for $50.

  •  
    5

    Rick Des Rosiers

    07/11/08 | Report as spam

    Due Diligence

    I think an important fact that needs to be considered is the Due Diligence a company undertakes(corporate policy), to address copyright infringed material. Ebay is not a "mom & pop" or innocent bystander in the sale. They are a large, successful, knowledgable enterprise. Their policy indicates that they do not condone or allow infringement and an effort must be made to enforce this policy. If it's a token gesture, they become complicent in the transaction as they are making a profit on the actual sale, and the listing. I have reported fake signatures to ebay with no response or enforcement taken. To see innocent customers being taken advantage of is wrong as listing on Ebay gives the seller/transaction a measure of credability.

  •  
    6

    bgagan911

    07/11/08 | Report as spam

    RE: Where Should eBay Draw the Line Against Fakes?

    I was at a time an avid eBay user. eBay was not so developed in India as it was in other countries. It was about 1-2 years back, when I started selling old items and linux distributions online. It was legitimate. But I cam across, people selling Cd's/DVD's (pirated) Microsoft, Adobe, Games, etc. You name the software and it was there listed with a Highlight (Offered to the Premium users). I reported it to the eBay guys, and also to Adobe people. But it was of no use, the listings were there for weeks and months happy.

    I think eBay was a major culprit at that time. They wanted to earn rather than worrying about customers complaining about people stealing money from then without delivering the products. You should have seen the eBay complaints forums and you would have had never-ever shopped again!

    eBay is a big entity, and I don't think they cannot invest in technology to make it a bit more secure, at least they can ask for Credit-Card Information from the users as a part of security information or SSN or any similar kind of information at the time of sign up. I just think they just don't want to!! eBay is a brand now and they are just living on its value rather than enhancing its value further.

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