French luxury handbag brand, Louis Vuitton took the site to court because imitation designer goods including handbags and perfumes are posted for sale on it. The judge ruled that eBay should not allow this.

In a similar case, the site had already been ordered to pay 20,000 euros to the French handbag maker Hermes. EBay is appealing against the fine in the Louis Vuitton case. - By Radio Netherlands, Copyright

News.com.au reports that "Earlier this month, eBay was convicted by a French court of selling counterfeit goods and ordered to pay €20,000 ($32,900) in damages to French luxury group Hermes."

The court ruling, which marked a first in France, found eBay directly responsible for the sale on its website of three Hermes bags including two fakes, for a total of €3000 ($4935).

France's traditional auctioneers took legal action against the online auctioneer in December, accusing it of encouraging trade in pirated and stolen goods.