L’Oreal Attacks Ebay’s Policies

Ebay are the target of L’Oreal’s legal guns this week as the consumer powerhouse questions Ebay’s ability to provide a platform for reselling of their goods. The point that products on the Ebay site may be unlicensed or not genuine is something that L’Oreal feels could be very harmful to their brand image. Also L’Oreal claims that the products being sold on the website could have been sourced from outside of the European market and therefore be subject to different taxes and controls. This issue particularly an issue for L’Oreal’s perfume shop section

This is by no means the only time that these two power houses have conflicted. They have met over similar issues in the past and Ebay has largely come out on top. Recently Ebay won the battle in Belgium that L’Oreal brought to the table.

The nature of Ebay’s functioned as been brought into question by other companies who feel it is open to easy abuse. Ebay’s attitude to sellers shifting branded goods on their site has been attacked by other brands previously including Rolex, Dell and Levis.

The courts face issues in the way they deal with this problem as the is previous disparity in the way they have handled previous claims from brands against Ebay. The courts have handled each case on its own factors and although potentially commendable, it is likely to cause more issues down the line as other companies can bring their unique cases to be judged time and again.

The basis for L’Oreals argument rests on trademark infringement and the French company will be seeking action in London’s High Court. Among the products that L’Oreal will cite are Lipstick, perfume samples, hair products and eye makeup. Ebay is predicted to argue a similar point as it has before and point out that it simply serves as an another route to market and can actually help companies boost their profits.