eBay wins court battle with L'Oreal

eBay has won its court battle with L'Oreal over the sale of counterfeit products.

Auction website eBay cannot be held accountable for counterfeit beauty products being sold by its users, according to a UK court ruling.

The site had been sued by cosmetics giant L'Oreal over the sale of fake goods, with court cases taking place around Europe.

L'Oreal claimed eBay was jointly liable for trademark infringements and was not doing enough to tackle the intellectual property issue.

In London's High Court, Justice Richard David Arnold ruled in favour of eBay - a decision the website described as a "victory for consumers".

In a statement, eBay also said the ruling was good news for the thousands of entrepreneurs who sell legitimate goods through the site.

However, the court also called on eBay to take a number of measures to prevent counterfeiting on its site.

According to the BBC, these include the introduction of restrictions on the number of high risk products, such as fragrances, that can be sold.

The online marketplace must also monitor negative feedback more closely and filter product listings, as well as ensuring that sellers disclose their names and addresses.

Richard Ambrose, head of trust and safety for eBay in the UK, insisted that co-operation and dialogue is the key to tackling counterfeiting, not legal action.

"Only by working together can we collectively address the issues that concern eBay, rights owner and consumers," he remarked.

Similar court cases are currently taking place in other European countries, including Germany and Spain.

In March, eBay approached the Intellectual Property Office to help it tackle the problem of counterfeiting and piracy.