L’Oréal India wins judgment on counterfeit against Shopclues

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In a judgment passed by Delhi High Court, L’Oréal India won a lawsuit against e-commerce website Shopclues for selling counterfeit products.

The website was restrained from dealing in L’Oréal products by way of a permanent decree after a 4-year long legal battle.

In the domain of intermediary liability of e-commerce websites, the court observed that the websites and online marketplaces ought to operate with caution if they wish to enjoy the immunity provided to intermediaries.

The court held that Shopclues was disqualified for the exemption under Section 79 of the Information Technology Act, 2000 as the website's role was more than that of an intermediary.

“Counterfeits is a serious issue faced by the beauty industry in India across online and offline platforms. This verdict will help us fortify our fight against online counterfeiting rampant on such marketplaces. We understand the importance of consumer protection and are hence encouraged by this first-of-its-kind decision,” said Amit Jain, Managing Director, L’Oréal India.

The court also directed the website to disclose complete details of all its sellers and their addresses, obtain certificates from sellers stating that the products are genuine and obtain the brand’s permission before uploading any of its products for sale on their platform.