EBay has successfully fought off a legal bid by L’Oreal to make it liable for profits lost from the sale of fake cosmetics on the auction site.
A French judge has ruled the online auction site has proved it is fulfilling its obligation to try and prevent sales of fake goods.
This is the second case the cosmetics multi-national has lost against eBay after a similar ruling in Belgium last year. Cases in the UK, Germany and Spain have yet to reach a conclusion.
L’Oreal had claimed eBay was profiting from the sales of fake versions of its cosmetic brands, but the site says it spends $10m (£6.6m) a year fighting crime perpetrated by some of its users.
It claimed the win as “an important victory for consumers.”
Head of trust and safety eBay UK and Ireland says: “We are delighted that eBay’s meaningful efforts to fight counterfeits online have been recognised by the court. Today, 99% of all items listed on eBay are genuine products and we continue to work hard to ensure eBay is a safe and trusted place to shop.
“We are also delighted that our status as an internet hosting provider has been acknowledged, and we welcome the invitation to resolve the outstanding matters in an amicable way; we have always believed that cooperation is the best way to fight counterfeits, he added.