The company said: "L'Oreal has been facing an increasing volume of illicit trade in fake fragrances and fake cosmetic products on some online auction sites. Consequently, L'Oreal has decided to take legal action to protect the consumers, preserve the quality of its selective luxury distribution network and defend the reputation of its trademarks." According to Liberation, a French newspaper, L'Oreal has incurred a loss of several million euros from the sale of counterfeit goods through eBay. The paper also reported that the company has started to take legal action in France, Germany, Britain, Spain and Belgium. Xavier Herfroy, head of anti-counterfeiting at L'Oreal, said: "EBay is not a victim because it gets a cut from each transaction and advertisement, real or fake."