PARIS: In response to Monday's court ruling upholding LVMH's claims against eBay with regards to its counterfeit sales, eBay held a press conference in Paris and issued global press releases throughout the day, announcing its position and intentions.
A Paris court ordered eBay to pay approximately $26 million in damages to Louis Vuitton, $30 million to Christian Dior, and $4.9 million to LVMH's perfume brands for, according to a press release from the LVMH Group, not taking the necessary measures to prevent the sale of the counterfeit goods on its site.
Nichola Sharpe, a US spokesperson at eBay, said the company had prepared for the ruling by developing a global crisis communications plan months in advance and coordinating with global PR teams, wide communications channels, and legal counterparts.
“I've watched other companies with legal verdicts that literally had to scramble around, where all media in the world were breathing down their neck," she told PRWeek. "We plan scenarios that could happen…so we're not scrambling around to get a statement.”
EBay announced it is appealing the ruling. Sharpe explained that the company is fighting on behalf of its buyers and sellers on the grounds of consumer choice.
The Financial Times reported that “Ebay claimed it had already stepped up its fight against counterfeits, and was investing more than $20m a year to tackle this problem.” Sharpe would neither confirm that point nor discuss eBay's ongoing communications strategy due to legal issues.
LVMH would not comment beyond the press release.