BOC (The Bank of China) will face a daily fine of $50,000 in the US unless it complies with a court request to give details of customers accused of selling fake goods. The bank is appealing the civil contempt order, which starts on 8 December, arguing that it would be violating China's privacy law if it gave the information. This stems from a 2010 lawsuit by a group of luxury retailers, including Yves Saint Laurent and Gucci, who sued a group of Chinese companies for allegedly selling fake goods, such as handbags; the retailers asked the US courts to order The Bank of China to pay $12m to cover their losses or impose a fine, however, the bank has refused to provide information. "The Bank of China's refusal to comply with US law, while it continues to receive the benefits attendant to its baking activity in the US, has inflicted a significant harm on plaintiffs and the general public. Only a large fine will have a coercive effect on The Bank of China at this stage", said US district judge, Richard Sullivan. Sullivan has ordered the bank to cover the retailers legal costs; however, The Bank of China says the judge lacks the jurisdiction to force its compliance.
The Bank of China (BOC) will face a daily fine of $50,000 in the US unless it complies with a court request to give details of customers accused of selling fake goods. The bank is appealing the civil contempt order, which starts on 8 December, arguing that it would be violating China's privacy law if it gave the information. This stems from a 2010 lawsuit by a group of luxury retailers, including Yves Saint Laurent and Gucci, who sued a group of Chinese companies for allegedly selling fake goods, such as handbags; the retailers asked the US courts to order BOC to pay $12m to cover their losses or impose a fine, however, the bank has refused to provide information. "BOC's refusal to comply with US law, while it continues to receive the benefits attendant to its baking activity in the US, has inflicted a significant harm on plaintiffs and the general public. Only a large fine will have a coercive effect on BOC at this stage", said US district judge, Richard Sullivan. Sullivan has ordered the bank to cover the retailers legal costs; however, BOC says the judge lacks the jurisdiction to force its compliance.