Tiffany & Co. sues eBay
Frustrated by the abundance of counterfeit items sold on eBay as the real thing, most individuals have little recourse beyond cancelling payment through their credit card companies, assuming they had the foresight to use that payment method.
When a few of these individuals including Jacqui Rogers, a retiree in southern Oregon who dabbles in vintage costume jewelry, confronted eBay with the fraudulent sellers, eBay refused to do anything and continued to list the sellers' other counterfeit items for sale. The reason, of course, is that eBay is making a healthy profit off those auctions.
"EBay makes a lot of money from a lot of small unhappy transactions," said Ina Steiner, the editor and publisher of AuctionBytes.com, an online newsletter. "If you've lost a few thousand dollars, you might go the extra mile to recover it. But if you've lost $50 or $20 you may never be able to prove your case, and in the meantime eBay has gotten the listing fee and the closing fee on that transaction."
In walks Tiffany & Company, who own the trademark for many of those items being counterfeited, are suing eBay for profiting from counterfeit sales. The case will go to trial by the end of this year, said James B. Swire, an attorney with Arnold & Porter, a law firm representing Tiffany. The legal question — whether eBay is a facilitator of fraud — is a critical issue that could affect not only eBay's future but Internet commerce generally, said Thomas Hemnes, a lawyer in Boston who specializes in intellectual property.
"If eBay lost, or even if they settled and word got out that they settled, it would mean they would have to begin policing things sold over eBay, which would directly affect their business model," Mr. Hemnes said. "The cost implied is tremendous."
In the meantime, Ms. Rogers and three women she met on eBay who are also costume jewelry buffs have banded together to track the swindlers they say are operating in their jewelry sector. "People have faith that eBay will take care of them, but it doesn't," Ms. Rogers said. "EBay has done nothing."
When a few of these individuals including Jacqui Rogers, a retiree in southern Oregon who dabbles in vintage costume jewelry, confronted eBay with the fraudulent sellers, eBay refused to do anything and continued to list the sellers' other counterfeit items for sale. The reason, of course, is that eBay is making a healthy profit off those auctions.
"EBay makes a lot of money from a lot of small unhappy transactions," said Ina Steiner, the editor and publisher of AuctionBytes.com, an online newsletter. "If you've lost a few thousand dollars, you might go the extra mile to recover it. But if you've lost $50 or $20 you may never be able to prove your case, and in the meantime eBay has gotten the listing fee and the closing fee on that transaction."
In walks Tiffany & Company, who own the trademark for many of those items being counterfeited, are suing eBay for profiting from counterfeit sales. The case will go to trial by the end of this year, said James B. Swire, an attorney with Arnold & Porter, a law firm representing Tiffany. The legal question — whether eBay is a facilitator of fraud — is a critical issue that could affect not only eBay's future but Internet commerce generally, said Thomas Hemnes, a lawyer in Boston who specializes in intellectual property.
"If eBay lost, or even if they settled and word got out that they settled, it would mean they would have to begin policing things sold over eBay, which would directly affect their business model," Mr. Hemnes said. "The cost implied is tremendous."
In the meantime, Ms. Rogers and three women she met on eBay who are also costume jewelry buffs have banded together to track the swindlers they say are operating in their jewelry sector. "People have faith that eBay will take care of them, but it doesn't," Ms. Rogers said. "EBay has done nothing."
posted by JoeFriday at 12:06 PM
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