Luxury houses Louis Vuitton and Dior Couture are suing online marketplace Ebay for failing to stop fake good sales.

The firms, both part of the LVMH group, have filed a civil complaint in Paris alleging that most goods sold on Ebay bearing their names are counterfeit.

Ebay could be forced to cough up EUR37m (US$47m) if the case is a success.

Reuters reported last month that French industry association Unifab planned to file a claim against the site for not doing enough to stop the sale of fakes.

In return, Ebay sent a letter to Unifab claiming it took the issue very seriously and has reportedly suggested holding discussions over the matter.

Ebay is also facing a counterfeit lawsuit filed by jeweller Tiffany & Co.