Online auctioneer eBay is being sued by Luxury jewellers Tiffany & Co, in a claim the e-store allowed counterfeit items to be sold on its website.Tiffany spokesman Mark Aaron stated that tests had shown that 73 per cent of items advertised by sellers on eBay as being from Tiffany & Co were fake.

This marks the first time a prominent maker of brand-name goods has sued eBay in the US. The company has over the past three years faced a similar challenge from Rolex in Germany. A decision in eBay's favour in that case was upheld on appeal, although Rolex was given leave to take the case to Germany's federal supreme court.

According to press reports, eBay has so far declined comment, saying it has yet to receive the lawsuit. However, the company has in place a programme called VeRO, or verified rights owners, to help companies prevent fake goods from being sold on eBay.