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Luxury brands can ban online sellers

A RULING by Europe’s top court could see luxury goods pulled from online retail sites such as Amazon.

Beauty company Coty said it brought the case to protect the cachet of its brands like Chloe and Marc Jacobs.

The European Court of Justice has now agreed that suppliers can prohibit the sale of their goods on online platforms to safeguard their image. The ruling said: ‘A supplier of luxury goods can prohibit its authorised distributors from selling those goods on a third-party internet platform such as Amazon.’

The case involved Coty’s German subsidiary and German retailer Parfumerie Akzente, which sells Coty’s goods on sites including Amazon against the company’s wishes.

Welcoming the decision, 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.’

Online platforms argue that such curbs are anti-competitive and will hurt small businesses.