The France-based cosmetics giant has accused eBay in a number of European countries of not doing enough to stop the sale of fake L’Oreal products on its online auction sites.
Paris’ Tribunal de Grande Instance ruled in May that eBay had taken sufficient measures to deter counterfeit sales, although it did say the two companies should work together collaboratively in the future.
L’Oreal has brought the case in a number of European countries. It has already been defeated in Belgium and verdicts are awaited in the UK, Germany and Spain.
According to L’Oreal, both companies agreed to court ordered mediation during a hearing on May 25.
It said the appeal is more of a formality and is ‘simply out of respect for procedural deadlines’ after eBay launched a legal proceeding that required the company to make its intentions to appeal clear within a month.
"L’Oreal confirms its willingness for mediation, with the aim of defining efficient and ongoing measures to fight against the sale of counterfeit products on eBay," a spokesperson told CosmeticsDesign.
Policing of online sales
The lawsuit has, yet again, raised the issue of who is responsible for the policing of online sales, a principle which is particularly important to luxury goods markets such as cosmetics.
In this case, L’Oreal had argued that eBay had acted as more than an impartial sales venue, and had been a participant in the sales of these counterfeit products by handling payments and ensuring the delivery of goods.
Ebay stated that it spends $10 m a year trying to keep counterfeit products off its site. Alex Von Schirmeister, general manager of eBay in France said: “We are confident that ultimately rights holders will realize that eBay is not the enemy here. 99 per cent of the transactions on Ebay are absolutely legitimate.”