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French cosmetics firm L'Oreal has sued eBay over the sales of counterfeit versions of its perfumes and other cosmetics products on the site.
The company said it had contacted eBay to deal with the issue, but has not been satisfied by its response. Louis Vuitton and Christian Dior both filed similar lawsuits against the auction giant last year.
eBay has some measures in place to combat the sale of fake goods - the VeRO system allows trademark owners to inform the site of suspected fakes, which are then removed from the site.
Many trademark/copyright owners are not convinced this is enough to deal with the problem though, and would like eBay to be more pro-active.
Also, the fact the eBay takes commission from every sale on the site, fake or not, leads some to suspect that it isn''t too interested in clearing up the problem.
Profits up by 50% for eBay