eBay Has To Pay $63m Because A French Court Doesn't Know A Platform From A User

from the bad-ruling dept

A few weeks ago, we pointed out that a French court had made a very bad ruling, blaming eBay for actions of its users. The case involved the sale of counterfeit goods from LVMH. Rather than recognizing that eBay is just a platform and has no way of knowing whether products put up for sale by its users are legit or counterfeit, the court somehow ruled that eBay should know. Now the court has ruled on the fine, making eBay pay up $63 million for this exceptionally bad ruling. If you provide any sort of platform, a ruling like this should make you very, very afraid of doing any business in France. You can now be blamed and fined for the actions of your users. Update: As pointed out in the comments, this ruling is even more ridiculous than it at first appears. Apparently, eBay is even responsible for people selling legit versions of some products, because LVMH claims that no one is allowed to resell those goods without a reseller agreement.

73 Comments | Leave a Comment..

Legal Issues

by Mike Masnick

Tue, Jun 10th 2008 2:44pm

French Courts Still Very Confused About The Difference Between A Platform And A User

from the blaming-the-wrong-party dept

For all the complaints that some have about the various safe harbors found in US law to protect service providers from the actions of their users, it's important to note the sort of ridiculous results that occur without such safe harbors. And, for that, you have to look no further than France, which not only doesn't appear to have similar safe harbor laws in place, but whose courts seem to consistently take the position that service providers absolutely are responsible for the actions of their users. We've seen this in the ongoing rulings against Google, which has finally been appealed out of France to the wider European courts. And, then there are the absolutely ridiculous results, such as that time when a French court declared Yahoo and its CEO at the time war criminals, because a user sold some Nazi memorabilia on Yahoo's auction site.

The latest isn't quite as extreme, but is no less ridiculous. A French court has declared that eBay is a counterfeiter because counterfeit goods were sold on eBay. Note that the court didn't blame the actual seller, but the platform provider eBay. The lawyer for the company suing claims that eBay is much more than a platform because it has tools that help sellers sell better. That seems like a huge stretch, but apparently the court bought it. Making eBay liable for any auction held on the site in France is likely to seriously stifle the use of eBay in the country. It now not only will need to review auctions, but somehow do so without any way of actually knowing if a product is legit or counterfeit. How could eBay possibly know this? It can't -- which means it will probably have to do something like ban a tremendous number of auctions. How that can possibly be a good thing for anyone in France is beyond me.

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