Monday, June 30, 2008

eBay and Fakes

Time magazine reports that a Paris court has ordered eBay "to pay $63 million in damages to units of the Paris-based luxury goods mammoth LVMH, after agreeing that the site had facilitated the sale of counterfeit versions of its high-end products, particularly Louis Vuitton luggage." Last month "another Paris court ruled that eBay must pay $30,000 to luxury house Herm├Ęs after knock-offs of its chic bags had been sold on the site."

Tyler Cowen asks: "how is eBay to detect possible fakes? Buy and inspect the wares? Shut down trade in any fakeable item?"