Amazon may be responsible for selling counterfeit Louboutin shoes in its store, the EU’s top court has said, in a judgment that observers said will embolden brands frustrated with the volume of knock-off goods sold on the e-commerce giant’s store.
In cases brought in Luxembourg and Belgium in 2019, Louboutin argued that third parties were selling fake versions of the brand’s distinctive red-soled shoes, a protected trademark, to unsuspecting Amazon shoppers.
Asked by those lower courts for its interpretation of the law, the European Court of Justice made a preliminary ruling yesterday that agreed with Louboutin’s concerns that Amazon’s website did not make it clear enough when customers may be purchasing goods from a third party, rather than directly from Amazon.
«I think other brands will have a very close look at this case and say: ‘Hey, maybe we can go down the same route,’» said intellectual property lawyer Fabian Klein from Pinsent Masons. «The direction of the ECJ is pretty clear. Life has got tougher for Amazon».
Amazon’s role in handling and delivering the counterfeit products was of particular significance, the ECJ said, as it blurred the line for consumers in knowing which company they had bought the products from.
Amazon said: «We will study the court’s decision».
The company said that these sellers were responsible for 58 per cent of all units sold on Amazon in October.
«Amazon acted like a department store that allowed unknown third parties to display counterfeit goods on its shelves, which not only led to great confusion among consumers on the origin of the goods but also greatly bolstered the distribution of counterfeit goods,» said Thierry Van Innis, a lawyer for Louboutin.
The company has faced similar complaints in the US, where several state-level judges have deemed Amazon responsible for dangerous products sold by third parties.
Amazon needs to make it super clear which products are sold by Amazon and which are sold by third party sellers. They should also mention that these products (the ones not sold by Amazon) are not verified so they could be fakes.
ReplyDeleteI think that a standard phrase agreed upon with the EU Court of Justice should be present on such pages on Amazon. Without it these problems will continue.
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