Luxury brands lifted by European Union court backing for online sales ban

Eva Mendes Launches Calvin Klein Secret Obsession Perfume

Coty's products include fragrances under brands such as Calvin Klein and Marc Jacobs

The European Court of Justice said a supplier could prohibit the selling of its goods on platforms such as Amazon to protect its luxury image.

Coty's case was unsuccessful initially - the trial court found that the contract terms conflicted with German or EU competition law - but the Higher Regional Court in Frankfurt sought guidance on appeal from the European Court of Justice.

The EU's top court was dealing with a case brought about by luxury cosmetics brand Coty in Germany.

The court said Coty's effort to limit distributors "is appropriate to preserve the luxury image of those goods", adding that it "does not appear to go beyond what is necessary".

One of those distributors, Parfümerie Akzente, sold Coty's goods through Amazon's German website.

MI county without active Toys for Tots program
A Kansas City charity is appealing for toys so that each of the more than 500 children it serves can have a Christmas gift. You can always drop off toys or donations at any time to the Toys for Tots headquarters at Beckley Auto Mall.

Russian Federation 'will not bar athletes' from Games
Haley, the American ambassador to the United Nations, at the Security Council in November. But Mutko said that the interests of Russia's athletes were his top concern.

Germany's Schulz wants 'United States of Europe' by 2025
The drafting process of such a constitutional treaty, Schulz said, should involve citizens across the Continent. 'Those who are against it will simply leave the EU, ' SPD party chief tells party conference.

It is no secret that some luxury brands are not too keen on online sales.

After intense lobbying by LVMH, Richemont and other luxury goods companies, European Union antitrust regulators laid down rules in 2010 allowing brand owners with less than a 30 percent market share to block online retailers without a bricks-and-mortar shop from distributing their products. In two test cases in recent years, the German cartel office forced Adidas and Asics to drop such bans, saying online platforms are crucial for small- and medium-sized companies and consumers.

The ruling said luxury brands have no contractual relationship with online marketplaces, which in turn are not required to comply with brands' quality criteria.

Needless to say, this ruling has significant and broader competitive ramifications for the DF&TR industry. The ECJ clarifies that it did not intend to set out a general statement of principle on selective distribution systems in that earlier judgment.

Latest News