Irvine company files federal racketeering lawsuit against eBay

LOS ANGELES (KABC) -- EBay and PayPal face a federal racketeering lawsuit, which focuses on the sale of counterfeit products.

Irvine-based company, Wimo Labs, filed a federal racketeering lawsuit against eBay Thursday.

Eyewitness News has been looking into online counterfeit sales over the past several months. Craig Crosby of The Counterfeit Report spoke with our consumer specialist Ric Romero. The Counterfeit Report works with manufacturers to expose bogus products up for sale.

Crosby told Romero the Report had shelves filled with fake products that were all purchased on eBay. He accuses the online company of doing little to stop counterfeit listings because of the profit involved in the sale.

Eyewitness News reached out to eBay for comment and a statement was released saying:

"We have received a copy of the complaint and are reviewing it. That said, counterfeits are not welcome on eBay and we have a number of sophisticated tools, policies and other measures in place to keep them off our site. We will vigorously defend our practices in court."