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eBay Describes the Scale of Its Counterfeit Goods Problem
Ian Lamont writes "As the Tiffany vs. eBay lawsuit winds its way through a federal appeals court, eBay has trotted out some numbers that show how many sellers attempt to sell fake goods on the auction site. Millions of auctions were delisted last year, and tens of thousands of accounts were suspended after reports were made to eBay's Verified Rights Owner program, which lets trademark owners notify eBay of fake goods being sold on the site. eBay says 100% of reported listings were removed from the site last year, most within 12 hours, and the company uses sellers' background information to make sure that they don't create new accounts to sell delisted items. Tiffany brought the suit against eBay in 2004, alleging that eBay was turning a blind eye to counterfeit luxury goods and demanding that eBay police its listings for bogus goods. Tiffany lost the case last July and will shortly present its arguments to the US Court of Appeals for the Second Circuit in New York. A similar case in France cost eBay $61 million."
Some counterfeit products stem from overruns. I.e. Lee commissions an order for 500 pairs of jeans from a factory, the factory gets sent 600 logos and makes 600 pairs of jeans. They get paid for the original 500 count jean order and then turn around and sell the real deal (same factory, same material and techniques, same quality, real logo) to the black market. Except the additional 100 pairs are counterfeit (Legally so).
Sounds like a perfectly reasonable excuse to prevent a legit buyer of a pair of the original 500 jeans from reselling their product... Lets lawyer up!
Is it sad that I am more likely to recognize you and your posts by your sig than your name or UID?
Quite possibly. There's no good solution, and there are vested interests on both sides. eBay makes a cut of every sale, so they want as many as they can, no matter what the legitimacy of the items being sold. Tiffany makes nothing from second hand sales, so they'd love to destroy any market for them. Counterfeiting probably is more damaging to Tiffany than a legitimate resale market, but if they weren't angling to stop all 'unauthorised' sales of their products I doubt they'd be bringing a lawsuit where the only real solution is to ban any Tiffany products from eBay.
eBay can very easily be written off as assholes for a multitude of valid reasons, but for once I think we've got a situation where they can't be blamed. Short of manually approving every single auction there's not much more they can do to keep out the obvious fakes. Now add to that the ones that can't be spotted a mile off by anyone with a bit of experience and it's like asking them to send a team of experts to your house and confirm that the item you just listed is indeed genuine. Good luck with that.
You expected to get legitimate Gillette Fusion razor blades from a Chinese eBay seller?
Slashdot is missing a -1 Dumbass moderating option.
I'm possibly missing something blindingly obvious here, but what's the benefit of the eBay step in the insurance fraud scam? Just to make it look like they have a more legitimate reason for keeping 8 PS3s in their living room before they were 'robbed'?
Actually, they probably aren't paid per item (too easy for them to game the system) but they are just overzealous by default because that is better for them over all. For one, they probably give the companies reports that say "We stopped X number of illegal sales this month!" The bigger the number, the happier the company. Also should someone from the company notice things that are not getting taken down, the company will get mad and say "What the hell are we paying you for?"
Only way that a company is likely to get mad about them being over zealous is if one of their major distributors gets mad for it happening. Problem is, that the major distributors aren't going to rely on eBay. They might use it, but their large volume will be elsewhere. Thus the company isn't likely to get complaints of sufficient level that they'll do anything about it.
there is no way to know if its real or not.
If that's the case, sounds pretty good to me. I'm going to start doing my shopping on eBay. ;)
I don't consider myself much of a capitalist, but I find it interesting that a company can have a product that another company reproduces for less (at the same quality), but can't compete with them. Why is that? I know regulations help level the playing field, but in a cold way, the consumer wins if another company can create the same product for less. I think typically though, products like this are of inferior quality - maybe the product itself, support etc...
Fact: Everything I say is fiction.
Sure, they can assume whatever they want -- but their unfounded assumptions shouldn't interfere with anyone else's ability to buy or sell; nor should it be deemed sufficient grounds to suspend anyone's eBay account.
If they think the product is fake they should have no trouble backing that claim up with evidence. Even then, it's the defrauded buyers that should be pressing claims, not the purported manufacturer.
"The state is that great fiction by which everyone tries to live at the expense of everyone else." - Bastiat
You're ignoring the fact that that $8,000 Rolex is probably made of gold/platinum, with actual diamonds/whatever. You pay the insane prices for the quality of the watch as well as the name. So while the $80 counterfeit watch may look the same, it's only the same watch on a very superficial level. So yes, about $4,000 of the price is for the name alone, there is a very real difference between genuine and counterfeit goods.
Let's say that the Nintendo Wii retails for $250. But you were going to sell them on eBay for $450 a piece and because of retail scarcity people bought them. Then you go through the scam I outlined above. When you make a claim with your insurance company, because people have used PayPal to transfer you $450, you can try to claim a loss of $450 instead of the loss of replacing a $250 machine.
It's known as the 3rd shift, and it's not 100 of 500, it's more like 1/3 (absolute minimum if you have something made in China) to 2/3 of all production.
Perfectly legal (there) and perfectly "real" goods. Welcome to China.
- Adam L. Beberg - The Cosm Project - http://www.mithral.com/
eBay doesn't actually sell anything.
It's an abuse of the legal system to allow these companies to go after ebay for counterfeit goods. How about going after the people committing the offence?
An SQL query goes to a bar, walks up to a table and asks, "Mind if I join you?"
True, however laziness shouldn't be a legitimate excuse for doing things the wrong way.
An SQL query goes to a bar, walks up to a table and asks, "Mind if I join you?"