Steve Madden sues Ebay over fakes

July 21, 2009 11:21pm

Shoemaker Steve Madden has picked a fight with Ebay, suing the e-commerce site for allowing the sale of counterfeit watches. This is becoming a well-trodden path for retailers feeling burned by illicit activity on Ebay — Tiffany, LVMH and L’Oreal have all filed similar suits.

But if history is a guide, Steve Madden will have a hard time recouping any alleged losses. Courts have tended to rule in Ebay’s favour, arguing that the e-commerce site is not responsible for ensuring the authenticity of goods sold by outside sellers. Only LVMH won compensation, to the tune of $63m.

That it is Steve Madden suing Ebay, and not a luxury brand, also serves as a reminder that counterfeiters are moving down the value chain, producing knockoffs of lower priced items.

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