Selling luxury brands online or ecommerce platforms like Amazon, Aliexpress, and eBay has become a huge legal issue! Read more here!
Selling luxury brands on the internet on platforms such as Aliexpress, eBay, and Amazon has now officially become a legal problem. As a matter of fact, it has reached the highest court in Europe. But, what about the case?
The case could change the industry forever. These brands are looking for the best way to protect their products and their own equity interests.
The Luxury Brands Have a Priority to Protect Their Products and Reputation
According to the Retail Gazette, the luxury brands have locked in an argument with online retailers for the last couple of years, because they believe they have the official right to decide who distributes their products so they can protect their image, brand, and reputation.
But, the online retailers are saying that restrictive distribution deals can only hurt the customers.
Many luxury goods companies have been slow to take advantage of the ecommerce solution, fearing their unique products will become too easy and too widely available, which is what make these luxury brands original in the first place.
EBay said in an official statement that it was important to remove restrictions and limitations that prevent small business, as well as, medium-sized businesses from growing, developing, and succeeding. The online platform bans enable brands to keep prices high and restrict customer choice, according to eBay.
This is not a fight between the luxury brands and the e-commerce platforms. The problem is far more relevant as the online e-commerce bans are established with respect to day-to-day mass market goods which makes them unjustifiable and anti-competitive.
The luxury sector of France seem to agree as the lawyer for the French government, Julie Bousin stated that the online curbs keep the image and the prestige of the luxury goods. Sweden, Italy, Austria, and the Netherlands are also involved in the care. The court adviser of the ECJ or The Court of Justice of the European Union will issue a non-binding statement in the coming period. The judges, who follow such recommendations will rule shortly after a statement is being made.
So, what is your opinion? Could and should the luxury brands prevent ecommerce platforms to sell their products on the internet? Is this about satisfying the needs of the customers or it is all about making a profit? Share your opinion with us!
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— Jenn Virskus (@JennVirskus) 31 de marzo de 2017