Executive Briefings

You Must Police Web for Counterfeit Versions of Your Stuff

Every company with goods for sale on the Web faces huge potential liabilities due to counterfeit activity, and the breadth of the potential fraud is enormous. A pending lawsuit by Tiffany & Co. alleges that 83 percent of Tiffany products sold on eBay are counterfeit. And a French court recently ordered eBay to pay luxury goods manufacturer LVMH Group $61m in penalties, based on allegations that 90 percent of LVMH's products sold on eBay--which include Louis Vuitton, Dior, Moet, and other brands--were counterfeit.
The eBay example highlights a problem that all manufacturers whose products are sold through Web-based marketplaces are facing with increasing trepidation: Not only must the buyer beware, but also it's up to the manufacturer to police the Web or face the consequences.
Source: Managing Automation, http://www.managingautomation.com

Every company with goods for sale on the Web faces huge potential liabilities due to counterfeit activity, and the breadth of the potential fraud is enormous. A pending lawsuit by Tiffany & Co. alleges that 83 percent of Tiffany products sold on eBay are counterfeit. And a French court recently ordered eBay to pay luxury goods manufacturer LVMH Group $61m in penalties, based on allegations that 90 percent of LVMH's products sold on eBay--which include Louis Vuitton, Dior, Moet, and other brands--were counterfeit.
The eBay example highlights a problem that all manufacturers whose products are sold through Web-based marketplaces are facing with increasing trepidation: Not only must the buyer beware, but also it's up to the manufacturer to police the Web or face the consequences.
Source: Managing Automation, http://www.managingautomation.com