Wednesday, May 13, 2009

udge sides with eBay in L'Oreal fake goods case

Online auction company eBay has emerged a winner in its latest lawsuit over counterfeit goods.

A French court ruled in favor of eBay in a suit filed by L'Oreal, eBay said on Wednesday. The cosmetics giant sought $4.8 million in damages, accusing eBay of allowing counterfeit goods to be traded on its site. The judge, Elisabeth Belfort, said eBay couldn't be held accountable for sales of fake products on its site. The ruling added that through its anticounterfeiting measures, eBay has "fulfilled its obligations of loyalty to other operators on the market."

eBay has said it spends more than $20 million a year to combat the problem of fake goods and will remove a listing if a company questions its authenticity. But L'Oreal said it thinks eBay could do more to stop the sale of counterfeit items.

"This is a clear legal victory for eBay and important victory for French consumers," said Mary Huser, general counsel for eBay. "We are delighted that eBay's meaningful efforts to fight counterfeits online have been recognized by the court, as has our status as an Internet-hosting provider," she said. "We welcome the invitation to resolve the outstanding matters in an amicable way as we have always believed that cooperation is the best way to fight counterfeits."

This latest lawsuit comes on the heels of similar cases brought against eBay. L'Oreal has the been most persistent, filing several related suits over the past two years. Last year, jewelry designer Tiffany and fashion powerhouse LVMH, parent of Louis Vuitton and Dior, both brought action against eBay over the sale of fake versions of their products. eBay won the Tiffany case but lost the fight with LVMH over counterfeit handbags. The court fined eBay 40 million euros, or about $63 million.

The Software and Information Industry Association, an industry trade group, has also been eyeing legal action against eBay over sellers who push phony software.

Is EBay Doing Enough to Stop Illegal Ivory Sales on Its Site?

An animal welfare group charges that eBaysales of ivory are brisker than ever a year after the online marketplace promised to restrict the sale of products made from animal teeth and tusks—many of which come from endangered species. TheInternational Fund for Animal Welfare(IFAW), based in Washington, D.C., is urging eBay to ban—not simply restrict—all such sales on its Web market.

EBay in June 2007 said that it would take down any ivory products from itseBay.com site that offered international shipping, and make sellers aware that to be permitted to sell ivory within their own country, they may need permission from their government (in this U.S., this would fall under the jurisdiction of the U.S. Fish and Wildlife Service). Despite this warning, however, EBay does not require such permission for items to be listed—it merely cautions sellers that permission may be required for the sale to be legal.

This policy brought eBay in alignment with the Convention on International Trade in Endangered Species (CITES), an international agreement first made by 80 countries—including the U.S., China, England, and France—in March 1973 to ensure that international trade of items made from wild animals and plants would not threaten their survival (CITES now includes 172 members). CITES in 1989 banned the sale of ivory and the slaughter of Asian (elephas maximus) and African (loxodonta africana) elephants for their trademark tusks in the wake of dwindling populations of the mighty giants on both continents at the hands of greedy poachers. Under CITES, the domestic sale of ivory harvested prior to the ban, however, is still permitted. The agreement does not specify penalties for those who violate the ivory ban, instead leaving it up to individual governments to determine punishment. In the U.S., penalties can be doled out under regulations such as the Department of the Interior's Endangered Species Act (ESA) of 1973 and the African Elephant Conservation Act, which threatens a year in prison and / or fines of up to $5,000 for each violation.

But IFAW's Washington, D.C.–office director Jeff Flocken says that instead of dipping, the number of ivory items tracked on eBay.com has increased. He says that IFAW found 678 items for sale at the site during a week last month, up from 440 items found during a week of monitoring nine months earlier. Sellers of much of this merchandise claim it was made before the CITES ban took effect.

EBay spokeswoman Kim Rubey says the company is trying to get a handle on the problem, but acknowledged that policing the Web is tricky, in part because of the large volume of daily transactions flowing over eBay.com. She admits that the company does not inspect ivory sold via its site to ensure that it was harvested prior to the CITES ban. It does, however, look for ivory listings that offer to ship internationally (a CITES violation) and will either remove the listings or notify local or national law enforcement (such as Fish and Wildlife in the U.S.), depending on the situation, Rubey says. EBay to some degree puts the onus on the sellers to police themselves, explicitly stating on its site that: "By listing your ivory item on eBay, you are certifying that you legally possess the item and are legally able to sell it in the United States." 

A basic search today of "elephant ivory" on the company's site turned up 306 such trinkets for sale. Some of the online peddlers claim in their online advertisements the ivory they're selling is "antique," meaning it is more than 100 years old and therefore not subject to the ban; others with newer ivory items say they obtained them before the 1989 ban took effect, although many do not offer proof of these claims.

In many instances, eBay, IFAW and Fish and Wildlife do not appear to be coordinating closely to crack down on illegal ivory sales. Fish and Wildlife, which enforces federal U.S. laws and regulations governing the sale of ivory as well as the CITES ban, distances itself from eBay's policies, noting in an e-mailed statement: "While eBay may have consulted the Service on this issue, the Service did not officially endorse the text used by eBay."

IFAW says it tracks elephant ivory sold on eBay by typing words such as "elephant" and "ivory" into eBay's search engine. Although it is not an exact science, the search engine provides a general idea of the amount of ivory for sale on the site, IFAW program manager Paul Todd says. "We do find what we believe are legal transactions because the seller lists Fish and Wildlife Service approval or documentation that the ivory is antique," Todd says. Fish and Wildlife, however, says, "The Service does not issue permits to authorize the sale of ivory. If such a sale is legal (meaning the ivory predates the ban and is sold domestically), a permit is not required."

The only way around such confusion as to whether illegal ivory is being sold on eBay.com is to ban all ivory sales, says Flocken, who adds that IFAW met with eBay officials in October to air its concerns. "EBay let us know they are in the business of broadening trade, not restricting it," he says. "But our stance is that they're not in the business of promoting extinction. We are asking them to go beyond the legal question to do what is morally right."

He says that eBay is only one of what is believed to be many sites on the Internet where ivory is sold, threatening to perpetuate rather than stop the illegal killing of declining pachyderm populations for their tusks. A 2007 University of Washington in Seattle study estimates that as many as 23,000 African elephants were slaughtered in 2006 alone and that Asian demand for ivory is undermining the 1989 ban.

IFAW is hoping that eBay will ban all ivory sales and send a message to potential sellers and to other online marketplaces. IFAW staffers and contractors currently are monitoring at least 15 different Web sites in 13 different countries—and Flocken says the group hopes to expand its monitoring operations to include other popular venues, including Amazon.com and Craig's List. "Our investigators," Flocken says, "are delving into the dark side of the Internet to see what they can uncover."

Tuesday, May 12, 2009

What is eBay?

You're familiar with the name. You've seen it in stories on the evening news. You've heard co-workers talking about it around the water cooler. Your niece says she even did her back-to-school shopping there. So what is this eBay phenomenon, anyway?

 

Simply put, eBay is:

·                                 A place to buy. Get nearly anything you need or want at prices better than you can find in traditional brick-and-mortar or even online stores. Though there are lots of rotten deals on eBay, too, the careful consumer can always come out ahead.

 

·                                 A place to sell. Whether you're a bix-box retailer or just an average Joe (or Jane) cleaning out your garage, nearly anything you list on eBay will sell if you're flexible enough about the price. eBay's global reach can even move unusual items that aren't in demand in your own neighborhood, turning paperweights into cash.

 

·                                 A place to shop. Because of the immense variety of things that can be found for sale on eBay, many members have discovered that eBay is one of the best places in the world to window or comparison shop. Item listings often include photos, detailed descriptions, and owner experiences. Because you can see lots of the same item side-by-side in various conditions and know what each one sold or is selling for, eBay gives you insight into the real market value or "street value" of most types of goods around the world.

 

·                                 A place to collect. eBay is the world's largest marketplace for rare, discontinued, collectible, or hard-to-find items, no matter what the type or price. Whether you're looking for turn-of-the-century box cameras, hand-made Victorian doilies, Soviet army service medals, or 1980s vintage arcade games, eBay will give you a better selection than just about anyone else anywhere.

 

·                                 A website. There is no physical eBay store. Founded in San Jose but now operated from several cities, eBay's service exists entirely online, and all aspects of business other than the delivery of bought and sold items themselves are typically handled through theeBay website.

 

·                                 Free for buyers and inexpensive for sellers. It costs nothing to become an eBay member, to shop for goods, or to purchase goods from eBay sellers. Sellers pay a minimal amount to list items for sale, and another small percentage of the value when an item is sold. There are no monthly fees or other hidden costs.

 

·                                 Green. eBay is has proven to be a boon to the environment. Millions of tons of goods that would otherwise go into landfills or more resource-intensive recycling programs instead find new homes every year thanks to eBay. Some of these goods include consumer electronics items like computer parts and mobile phones that release toxic substances once they're discarded and exposed to the environment.

 

·                                 Socially responsible. Because eBay eliminates middlemen and lowers barriers to buying and selling, potters in rural Mexico and bead weavers in central Asia can sell hand-made goods directly and inexpensively to a massive global audience. This brings new economic opportunities to developing areas and increases cultural understanding between populations. eBay has become one of the world's most interesting and exciting trans-national ambassadors.

 

·                                 Like the real world in many ways. Just as you'll encounter both honest and dishonest people in the real world, you'll find both honest people and crooks on eBay. Thankfully, eBay's site includes a selection of tools like the feedback system that are designed to help you to remain safe as an eBay member.

In short, since eBay's founding in 1995 it has become the world's largest place to buy and sell, a community of hundreds of millions of regular people, small businesses, and even big businesses from all of the seven continents. Millions of items of every kind imaginable, in every condition imaginable, change hands every day on eBay for prices ranging from one cent to hundreds of thousands or even millions of dollars (or pounds, or other forms of currency).

According to eBay's mission statement, "eBay's mission is to provide a global trading platform where practically anyone can trade practically anything."

By nearly any measure, eBay has succeded at its mission beyond its wildest dreams, and it has done so almost entirely in the online universe. But don't take my word for it. Visit eBayand explore one of the largest success stories of the Internet. Then join eBay to start shopping for great deals on your favorite items or to start turning your old junk into fresh cash.