eBay Sued (again) Over Counterfeit Sales

Lawsuit targets intentional and unlawful counterfeit listings on eBay.

July 27, 2017, Los Angeles, CA – Once again, eBay (NASDAQ: EBAY) is being sued in U.S. District Court over the sale of counterfeit goods on its website.

According to the complaint obtained by The Counterfeit Report®, and a report by Knife News, U.S. cutlery maker and industry pioneer Spyderco contends that eBay isn’t taking “the reasonable means” to halt services to sellers of counterfeit Spyderco knives. “eBay continues to allow www.ebay.com to be used by thousands of Unauthorized Sellers to advertise Fake Products that display unauthorized Spyderco trademarks that infringe on Spyderco’s Marks.”

eBay is no stranger to ongoing allegations and lawsuits for counterfeit goods sales, and faces a “credibility crisis” for failing to adhere to its own policies, crack down on counterfeit goods listed on its website, altering feedback, and making it easy for counterfeiters, the world’s largest criminal enterprise, to peddle an estimated $1.7 trillion in counterfeit goods to unsuspecting consumers.

The plaintiffs change, but the story remains the same - eBay won't knock off the knockoffs on its websites. Just last month, another counterfeit case against eBay was settled and sealed (Wimo Labs LLC v. eBay 8:15-cv-1330).

Selling counterfeits is illegal, and prohibited on eBay. However, despite eBay policy and repeated trademark infringement notifications, the sellers and counterfeit goods often remain, consumers are deceived and injured, while manufacturers and retailers are being harmed in a big way with little recourse.

The lawsuits are likely little more than an annoyance to the e-commerce giant, who makes billions in profit, in part from each sale of counterfeit items.

eBay's patterns and practices exposed by The Counterfeit Report illuminates a broad knowledge and the enormity of eBay's counterfeit marketplace. The Counterfeit Report has identified over 3 million counterfeit items on eBay and reported over 1.9 million for listing removal on behalf of right's holders.

eBay has become the perfect platform to enable and facilitate criminal activity and benefit from the proceeds of the dishonest activity.

eBay should expect civil, criminal and legislative consequences when they fail to police their own websites and protect their consumer community.

Some issues are debated – and decided – in the court of public opinion where consumers will decide if eBay must provide honest services and present information in a clear, truthful and professional manner. Other issues will be decided in a court of law as more manufacturers, frustrated with inaction and lack of enforcement of counterfeits appearing on eBay, seek legal remedy.