Eugene David
...The One-Minute Pundit

Monday, September 25, 2006


The luxury-goods maker LVMH is suing -- well, you'll NEVER guess:

EBay is already fighting a similar case filed by jewelry maker Tiffany in 2004 in New York's federal court. Both Tiffany and LVMH say their investigators made test purchases of brand-name items offered for sale on eBay and found the overwhelming majority were phony.

LVMH says in its lawsuit that of 300,000 Dior-branded items and 150,000 Vuitton bags offered on eBay during the first six months of this year, 90% were fakes.


Is that all?

The perceived prevalence of fakes on the site is already hurting some sellers of legitimate goods, says a West Coast e-commerce analyst who requested anonymity. "Buyers also see it as a problem, and that makes them unwilling to pay high prices for anything on the site," the analyst says.

Furthermore:

If the suit is successful, it could shake the foundations of eBay's longstanding practice of letting buyers and sellers make deals on its site with minimal supervision by the company. "You can imagine what a change that would be to their business model," says Louis S. Ederer, an intellectual-property expert at the law firm of Torys in New York.

Well, you COULD say that.

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