Investigation Reveals 500,000 Counterfeit Products Sold to eBay Consumers

Consumers and manufacturers fall victim to eBay profits

September 20, 2016, Los Angeles, CA – E-commerce websites, including eBay (EBAY), are failing to crack down on the enormously profitable business of selling counterfeit goods, making it easy for the world’s largest criminal enterprise to peddle $1.7 trillion in counterfeit goods to unsuspecting consumers. Meanwhile, 750,000 US jobs are lost, US business lose an estimated $250 billion, and the cost for individual trademark holders to police the Internet for infringement is enormous.

The Investigation:

The Counterfeit Report® identified over 2-million counterfeit and fake items listed on eBay;

• The eBay counterfeit product listings reflect actual sales of over 500,000 counterfeit items to eBay consumers. Particularly shocking is the investigation focused on about a dozen items. Not purses, watches or fakes shoes, but items consumers wouldn’t suspect.  The majority were fake – easily identifiable items that don't exist in the manufacturer's authentic product line, but bear the manufacturer's trademark.
  
• The Counterfeit Report also purchased and received over 2,000 manufacturer confirmed counterfeit products from eBay sellers. While eBay allows the sellers to remain, eBay chose to block The Counterfeit Report’s accounts and test purchases in an effort to end the whistleblower activity.  Negative “counterfeit” feedback left by The Counterfeit Report for the counterfeit sellers was removed by eBay.
• The Counterfeit Report, a manufacturer’s authorized agent, sent over 2,500 Notices of Claimed Infringement to eBay's intellectual property Verified Rights Owner Program ("VeRO") after identifying over 1.2 million counterfeit and fake items in just three months. Inexplicably, VeRO will remove counterfeit listings when notified by trademark holders, but will not proactively remove counterfeit and fake item listings.

Could you identify these actual fake items purchased on eBay? None exist in the manufacturer's authentic product line.

(Clockwise from left – Photo: The Counterfeit Report®)

• SanDisk^® 64GB microSDHC memory card. The microSDHC^® standard is limited to a maximum capacity of 32GB, but over 40,000 fake SanDisk^®, Kingston^®, Samsung^® and unbranded Generic microSDHC^® cards in capacities above 32GB were sold to consumers by eBay sellers. Data is lost or overwritten when the actual capacity, often far less than the printed capacity, is reached.  (view the alert)
  
• Vans^® does not make iPhone 6 cases – but they are common on eBay.  (view the alert)
  
• The Lunatik^® TakTik^® Extreme model case is not made for the Apple iPhone 6^® or in metal, yet The Counterfeit Report made dozens of purchases of poor quality counterfeit Lunatik^® trademarked products representing over 160,000 sales to duped eBay consumers. (view the alert)
  
• The authentic Skunk2^® performance shift knob is only available in a matte titanium finish. The Counterfeit Report reported 2,443 colored fakes listed on eBay in red, neo, blue, green, gold and chrome. 1,600 had been sold to consumers. And yet, the items remain. (view the alert)
  
• The Monster^® trademarked Tron T1 Headphone was never produced or sold by Monster Products, yet unsuspecting consumers can be duped out of over $300 for this fake Monster product. (view the alert)
  
• Dr. Numb^® Over-the-Counter 5% Lidocaine topical pharmaceutical is not manufactured in a 10gr. size. Unsuspecting consumers receive a fake product with unknown ingredients, and an obvious spelling error. (view the alert)

Although the listings were removed, the sellers remained and often relisted the counterfeit items in what is best described as a whack-a-mole process.

Sadly, buyers can’t turn to eBay's feedback as an indication of seller credibility. Counterfeit items reported through the VeRO program are not reported or reflected in eBay seller feedback, even after repeat violations. The Counterfeit Report often reports continuing same-seller violations, including one seller with over 260 counterfeit listings. Yet, the seller remains with a deceptive eBay 5-star feedback profile.

Ryan Moore, Senior Manager, Global Corporate Affairs & Communications at eBay Marketplaces brushed off The Counterfeits Report’s investigation in a response to 24/7 Wall St. with his claim that “counterfeits are not welcome on eBay” and, “In the rare case a buyer believes that he or she has purchased a counterfeit item, eBay’s Money Back Guarantee applies to virtually all transactions and will cover them accordingly.”

But, how would a buyer know they received a fake? eBay won't tell you that you bought a confirmed counterfeit or fake item even if the items are dangerous or potentially deadly -- like automobile suspension parts and over-the-counter drugs¹. The items continue to be listed, and eBay even sends email solicitations encouraging the purchase of the counterfeit and fake items, which contribute to eBay’s $2 billion in profits.

E-Commerce giant eBay is no stranger to allegations of selling counterfeit goods and faces a “credibility crisis” for failing to adhere to its own policies, crack down on counterfeit goods listed on its website. Companies that facilitate criminal activity and benefit from the proceeds of dishonest actions which impact jobs, consumer safety and public trust create a public perception of deception and impunity.

The patterns and practices exposed by The Counterfeit Report’s investigation illuminates a broad knowledge and the enormity of eBay’s counterfeit marketplace, despite eBay’s claim "You can't list replicas, fakes, counterfeits, or other illegal copies on eBay." The fact is, you can.

The products received from eBay sellers were featured on television newscasts, The Counterfeit Report’s Press Releases, and can be seen on The Counterfeit Report website.

1. The Counterfeit Report purchased trademarked products including; counterfeit auto suspension parts, Apple iPhone® chargers, which have been implicated in starting fires, injuries and a death, as well as over-the-counter (OTC) drugs, fake FBI and Police badges and identification, electronics, sporting goods, children’s toys, and fragrances.