The European Court of Justice (ECJ) has this week concluded on a landmark decision to ban third party retailers – i.e. Amazon or eBay – from selling Coty products and other luxury brands online. The ruling ultimately came down to the court’s agreement that these brands have a right to preserve their image.
“The Court notes in this context that the quality of luxury goods is not simply the result of their material characteristics, but also of the allure and prestigious image which bestows on them an aura of luxury,” said the ECJ, “That aura is an essential aspect of those goods in that it thus enables consumers to distinguish them from other similar goods. Therefore, any impairment to that aura of luxury is likely to affect the actual quality of those goods.”
The case came to court involving US-owned Coty's German subsidiary and German retailer Parfumerie Akzente, which sells Coty's goods on sites including Amazon against the company's wishes.
In a statement, Coty said: “After years of uncertainty, this means luxury brands can determine how they are placed on digital platforms and it is a clear ruling for the protection of luxury brands’ image, the defence of our teams’ work and the protection of consumers’ rights and information.
“As a consumer led company, we want to make our brands and products accessible for our consumers. It means that these can be accessed through our authorised retailers who will offer and promote our brands within the right environment and in the appropriate way.”
It is currently unknown whether the ruling will impact Australian retailers.
