L'Oreal and eBay in dispute

Cosmetics giant L'Oreal is starting proceedings against online auction site eBay at the High Court in the UK for selling fake versions of its products, reports the BBC. The French company has now started legal proceedings in five European countries as it looks to protect its brand and distribution network.

L'Oreal says eBay could do more to stop the sale of counterfeit products. Ebay argues it simply provides a trading platform for consumers to buy and sell products. L'Oreal lost a case against eBay in Belgium last year, but other retailers have won cases against the site.

Luxury goods group LVMH, which owns Louis Vuitton and Moet Hennessey among others, has won rulings in the French courts against eBay. But in August last year, a commercial court in Brussels said eBay does not have to police its site to prevent counterfeit products from being sold. A US court also ruled in favour of eBay against jewellery store Tiffany's & Co.

L'Oreal has started proceedings against eBay in France, Belgium, Germany, Spain and the UK.