LVMH vs. E-bay

On February 12th 2010 LVMH won its case against E-bay for selling counterfeit Christian Dior, Kenzo, Givenchy and Guerlain perfume products which the auction site was retailing. This is a social force that can greatly affect LVMH reputation. Many consumers go on E-bay looking to find real luxury merchandise at a lower price but many times buy counterfeit. Not only does this put their reputation on the line but they lose customer loyalty and anger their customers. Customers can potentially believe that LVMH has manufactured the counterfeit creating social disapproval and a bad publicity. It's important that LVMH took this to court because if they didn't address the problem it would appear as if they didn't care about the quality and trademark of the product that hold their designer names. E-Bay was ordered to pay LVMH €200,00.