Coty Argues For Brand Protection, Not a Restriction of Online Sales

Coty (COTY) , a German beauty products manufacturer, has rejected accusations that its distribution policies imply a blanket ban on online sales, according to Reuters

Coty argued that its key concern was to protect the cachet of its luxury brands including Marc Jacobs, Calvin Klein and Chloe.

The argument came in a case which could decide whether luxury goods companies can stop retailers from selling their products on online marketplaces such as Amazon.com  (AMZN) or eBay (EBAY) .

The company told Europe's top court that its conflict with German retailer Parfumerie Akzente, which sells its goods on sites such as Amazon against its intentions, was not about imposing a ban on such trade.

The company's agreements barring retailers from selling on third-party online platforms are aimed at conserving the image and quality of its products, Coty's lawyer Andreas Lubberger told the Court of Justice of the European Union.

"In Germany, we have a saying a picture is worth a thousand words, in this case, a name is worth a thousand words," he said.

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