When you buy auction items online - especially luxury products - how do you know you're getting the real thing?
One of the biggest names in jewelry warns most of the time its products go up for bid - they're bogus.
Tiffany and Company is suing eBay under a trademark law that could radically change the way eBay handles products with famous trademarks. Tiffany says it bought jewelry advertised as "Tiffany" on eBay and found only 5 percent was genuine. Many buyers are never aware that they're paying a lot for fakes.
According to Reuters, during 2003 and 2004 it had two employees policing eBay and forced the shutdown of about 19,000 auctions. eBay says it has had a program in place since 1998 called Vero, or Verified Rights Owners, to keep fake goods off its site. So it argues its done all the law requires and more.
However, Tiffany says eBay is unwilling to confront and prevent the massive fraud on its site in any meaningful way. The outcome of this lawsuit could lead to higher costs for auction sites if they are forced to more closely monitor what's being sold.
