California-based online auction firm eBay is being sued by Tiffany & Company, the famous New York-based jewelry retailer for having allowed its Web site to be used to sell fake jewelry.
Apart from to facilitating sales of fake Tiffany goods, the path breaking lawsuit also alleges that eBay makes millions of dollars from fees charged for counterfeit sales.
Around two years back, Tiffany bought several hundred items on eBay and found that three quarters of the items purchased were counterfeit.
An eBay spokesperson, Hani Durzy said, “We are disappointed that Tiffany filed the suit, given that we have cooperated with their brand-protection efforts for several years through our Verified Rights Owner (VeRO) program.” Durzy added, “Through VeRO, we have worked with Tiffany to develop substantial proactive monitoring efforts and given them the tools to report problem listings, which we promptly remove.”
The Tiffany lawsuit, which originally was filed in 2004 in a New York State court, is expected to go to trial by the end of this year, according to press reports.