Amazon hit by EU court ruling on counterfeit Louboutin sales

Ecommerce giant Amazon was dealt a blow on Thursday when a European Union court said it may be liable for the sale of counterfeit Louboutin shoes on its store.

Two lower courts in Luxembourg and Belgium referred a case brought by Louboutin in 2019 to the European Court of Justice. The maker of the famous trademarked red-soled shoes argued third parties were selling fakes on the Amazon platform.

In a preliminary ruling, the ECJ sided with Louboutin’s premise that Amazon did not make it clear that customers could be buying products from a third party. The case will now revert to the lower courts for a final judgment.

Amazon’s role in handling and delivering the counterfeit products was of particular significance, the ECJ said, as it blurred the line for consumers in knowing which company they had bought the products from. Amazon said it would study the court’s decision.

“Thus far, Amazon acted like a department store that allowed unknown third parties to display counterfeit goods on its own shelves, which not only led to great confusion amongst consumer on the origin of the goods, but also greatly bolstered the distribution of counterfeit goods,” the Financial Times quoted Thierry Van Innis, a lawyer for Louboutin, as saying.

“After this judgment, Amazon will have little choice but to adjust its business model and make a very clear distinction between goods offered by itself and goods offered by third parties,” he added.

Reporting by Frank Prenesti for Sharecast.com