The case has been brought by German make-up and perfume brand Coty.

It wants to stop one of its retailers from selling its goods on online marketplaces such as Amazon.

Owners of luxury brands argue that they should have the right to choose who distributes their products, to protect their image and exclusivity.

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.

Among other questions, the court will consider whether protection of a luxury image is a legitimate reason for a selective distribution system.

The case originally went to a court in Germany, but, later, guidance was sought by the European Court of Justice.

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.

As well as fighting to control their distribution channels, luxury brands are also battling to control the amount of counterfeit goods online.

Matt Jones, a solicitor at law firm EIP said the ruling would provide clarity on where luxury goods can be sold.

“Luxury brands do not want their stuff sold on platforms that also sell fake goods and cheap alternatives,” he told the BBC.

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Source: BBC

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But the ban must be based on internal company rules requiring all employees to “dress neutrally”, said the European Court of Justice (ECJ).

It cannot be based on the wishes of a customer, it said.

It is the court’s first decision on the issue of Islamic headscarves at work.

The ECJ’s ruling was prompted by the case of a receptionist fired for wearing a headscarf to work at the company G4S in Belgium.

Belgium’s court of cassation had referred the case to the EU’s top court for clarification.

‘Not discriminatory’

Samira Achbita was fired when after three years of employment, she began wearing a headscarf to work.

She claimed she was being discriminated against on the grounds of her religion.

But the company had amended workplace regulations to forbid employees “from wearing any visible signs of their political, philosophical or religious beliefs and/or from engaging in any observance of such beliefs”, the court explained in its ruling.

That covered “any manifestation of such beliefs without distinction”, and was therefore not discriminatory, it said.

It said “an employer’s desire to project an image of neutrality towards both its public and private sector customers is legitimate” – but national courts must make sure this policy of neutrality had been applied equally to all employees.

It said the Belgian court ruling on the case must also ascertain whether it could have been possible to offer Ms Achbita another post not involving visual contact with customers.

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Source: BBC

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