eBay Consumers Sold Over 704,000 Counterfeit Products

Despite eBay claims, counterfeits, fakes and replicas are common.

October 16, 2017, Los Angeles, CA – E-commerce giant eBay (EBAY) has a big counterfeit problem and consumers are suffering the consequences. In addition to trademark, copyright and patent infringement, is eBay's illusory claim "You can't list replicas, fakes, counterfeits, or other illegal copies on eBay."

That claim is demonstrably false. The fact is, an enormous number of counterfeit products are listed and sold to eBay consumers.

• The Counterfeit Report, a consumer advocate and industry watchdog, studied a small sample product group and identified over 3.1 million counterfeit items listed on eBay. The actual eBay listings reflect sales of over 704,000 items to eBay consumers. The tiny sample product group was not purses, watches, sunglasses or fake shoes, but items consumers wouldn't suspect. The majority were familiar trademarked items that don't even exist in the manufacturer's authentic product line.
• The Counterfeit Report, authorized by the right holders, sent trademark infringement notices to eBay for over 1.9 million counterfeit items. eBay will remove counterfeit listings when notified by the trademark rights holders, but not proactively. Some remain after dozens of complaints.

• The Counterfeit Report also purchased and received over 2,300 items from eBay sellers - yet never received an authentic item. Many can be viewed on The Counterfeit Report website. Each is catalogued and retained as evidence.
• The Counterfeit Report opened hundreds of eBay "Money Back Guarantee" claims for the confirmed counterfeit items received from eBay sellers. eBay's Money Back Guaranty proved to be a difficult gauntlet of obstructions, illegal directions and arbitrary decisions. eBay responded by blocking The Counterfeit Reports eBay accounts, and by extension any protections afforded eBay consumers.
• eBay won't tell you that you bought a confirmed counterfeit, even when some items are dangerous, or potentially deadly. In fact, eBay posted just the opposite in the buyer's purchase history when the listings were removed; "If you've already sent payment, the sale should process as normal and you don't have anything to worry about." eBay still receives a transaction fee for each sale.
• Not only does eBay allow counterfeit products to be listed, eBay allows the sellers and listings to remain despite repeat notifications of hundreds-of-thousands of confirmed counterfeit items. eBay even sends direct email solicitations to consumers to purchase the fake items.

It is unclear just what eBay believes its legal defense to enabling, hosting and facilitating the sale of counterfeit and fake merchandise is, however manufacturers of legitimate goods likely would strongly disagree.

For example; The Counterfeit Report identified over 1.8 million fake microSD® computer memory cards displaying registered trademarks, and purchased 193 of the counterfeit items. Buying a counterfeit microSD® card, which are used to store data, images and contacts in your phone, camera, iPad, tablet, laptop and GPS, is dangerous. If you buy a fake, you are likely to lose your data and you may damage your equipment.

What did eBay do when notified of the fake 64GB microSDHC® memory cards depicted in pictures below? Nothing. The items, which don't even exist in any manufacturer's authentic product line, remain for sale on eBay's websites.

Buyers can't turn to eBay seller feedback as an indication of seller credibility. Counterfeits reported to eBay are not reported or reflected in the eBay seller's feedback profile, even after repeat violations. In fact, eBay has publicly admitted to altering counterfeit feedback left for sellers. The Counterfeit Report often reports continuing seller violations, including one seller with over 260 counterfeit listings, yet the seller remains, with a deceptive 5-star feedback profile. Others display a "Top Rated Seller" rating.

Buyers should be very wary of purchasing any trademarked item unless it comes directly from the manufacturer or authorized retailer. Counterfeiters and dishonest sellers are very good at creating visually deceptive products, packaging, holograms, certification labels and documentation that easily deceive consumers. Even if removed from eBay, counterfeit sellers easily return and sell under new accounts.

Companies that facilitate criminal activity and profit from dishonest sales which impact consumer safety, jobs and public trust create a public perception of deception and impunity. However, their reputation damage is only a small part of the problem: the value of counterfeit and pirated goods is forecast to grow to $2.8 trillion, and cost 5.4 million net job losses¹ by 2022, while manufacturer's brand integrity is tarnished or destroyed.

Footnote:
¹ THE ECONOMIC COSTS OF COUNTERFEITING AND PIRACY
The report was prepared for The International Chamber of Commerce (ICC BASCAP) and The International Trademark Association (INTA)
January 2017
Frontier Economics, Ltd.