One of Europe’s top courts is due to open a landmark case that could determine whether luxury goods companies can ban online sales.<\/p>\n
The case has been brought by German make-up and perfume brand Coty.<\/p>\n
It wants to stop one of its retailers from selling its goods on online marketplaces such as Amazon.<\/p>\n
Owners of luxury brands argue that they should have the right to choose who distributes their products, to protect their image and exclusivity.<\/p>\n
The dispute is in the spotlight now because the European Commission is pushing for more cross-border online sales to boost growth and jobs and catch up with the US and Asia.<\/p>\n
Among other questions, the court will consider whether protection of a luxury image is a legitimate reason for a selective distribution system.<\/p>\n
The case originally went to a court in Germany, but, later, guidance was sought by the European Court of Justice.<\/p>\n
The ruling could have a significant impact on the future relationship between brands and resellers and impose widespread bans on the sale of luxury goods on Amazon Marketplace and eBay.<\/p>\n
As well as fighting to control their distribution channels, luxury brands are also battling to control the amount of counterfeit goods online.<\/p>\n
Matt Jones, a solicitor at law firm EIP said the ruling would provide clarity on where luxury goods can be sold.<\/p>\n
“Luxury brands do not want their stuff sold on platforms that also sell fake goods and cheap alternatives,” he told the BBC.<\/p>\n
–<\/p>\n
Source: BBC<\/p>\n","protected":false},"excerpt":{"rendered":"
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