eBay Consumers Receive 500,000 Counterfeit Products
Despite eBay claims, counterfeits, fakes and replicas are common
September 29, 2016, Los Angeles, CA – E-commerce giant eBay (EBAY) has a counterfeit problem. Despite eBay’s claim "You can't list replicas, fakes, counterfeits, or other illegal copies on eBay" the fact is, an enormous number of fakes are listed and sold to eBay consumers.
Ryan Moore, Senior Manager, Global Corporate Affairs & Communications at eBay Marketplaces claimed in his response to a 24/7 Wall St. inquiry 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.”
That claim is demonstrably false. The facts are;
The Counterfeit Report identified over 2-million counterfeit and fake items listed on eBay. The eBay listings reflect actual sales of over 550,000 items to eBay consumers. The items identified were not purses, watches and fakes shoes, but items consumers wouldn’t suspect. The majority were fake – easily identifiable items that don't even exist in the manufacturer's product line, but bear the manufacturer's trademark.
The Counterfeit Report, an authorized agent for manufacturers, sent over 2,500 Notices of Claimed Infringement to eBay's intellectual property Verified Rights Owner Program ("VeRO") for listing removal after identifying over 1.2 million counterfeit and fake items in just three months. VeRO will remove counterfeit listings when notified by trademark rights holders, but will not proactively remove counterfeit listings.
The Counterfeit Report purchased and received over 2,000 manufacturer confirmed counterfeit and fake products1 from eBay sellers. Each is catalogued and retained as evidence. Many can be viewed on The Counterfeit Report website.
The Counterfeit Report opened hundreds of eBay “Money Back Guarantee” claims for the manufacturer 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. Alarmingly, eBay initiates a refund claim by either requiring the buyer to return the counterfeit item to the seller, where it could be easily recycled and resold, or alternatively, eBay instructs buyers “In order to continue with the investigation of your eBay Money Back Guarantee case, you must destroy and discard the item” despite manufacturer’s written requests the items be retained as evidence.
What eBay won't tell you is that you bought a confirmed counterfeit, even when some items are dangerous, or potentially deadly. In fact, eBay tells buyers the opposite in their purchase history when listings are removed “If you've already sent payment, the sale should process as normal and you don't have anything to worry about."
It is unclear just what eBay believes is its legal defense to hosting the sale of counterfeit and fake merchandise is, however manufacturers of legitimate goods would likely strongly disagree. For example, cell phone case manufacturer Wimo Labs3 is suing eBay after making 5,557 notifications to eBay that it was hosting the sale of counterfeit and fake metal versions of its popular LUNATIK® cell phone cases in materials, models and various colors not even available from the manufacturer. The Counterfeit Report purchased and reported some of these counterfeit phone cases, yet tens-of-thousands of innocent and duped eBay buyers were never notified they received a fake. The fake items continue to be listed.
The Counterfeit Report purchased 193 fake microSD® memory cards carrying an infringing registered trademark, and identified over 1 million listed or sold items. Purchasing 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 fraudulent fake items depicted in pictures below? Nothing, as the items, which don’t even exit in the manufacturer’s product line, remain for sale on the eBay website.
The Counterfeit Report’s Press Release identifying the particularly alarming practice of selling fake FBI and Police badges and identification on eBay was emailed to eBay CEO Devin Wenig in May, 2016. The email was viewed 328 times. Despite eBay’s policy “You can't list replicas, fakes, counterfeits, or other illegal copies on eBay” and the obvious hazards, the items remain on eBay available to child predators, terrorists and other criminals.
The Counterfeit Report received the fake FBI and LAPD identification below from eBay sellers, made to order for presentation to U.S. Attorney General Loretta Lynch and California Attorney General Kamala Harris to illustrate the ease the fake government ID was obtained from eBay. Both replica badges are offered on eBay.
Buyers can’t turn to eBay seller feedback as an indication of seller credibility. Counterfeits reported through eBay's VeRO program are not reported or reflected in the eBay seller’s feedback, even after repeat violations. 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" claim.
The patterns and practices exposed by The Counterfeit Report illuminate a broad knowledge and the enormity of eBay’s counterfeit marketplace despite eBay’s claims.
The products received from eBay sellers have been featured on television newscasts, The Counterfeit Report’s Press Releases, and can be seen on The Counterfeit Report website.
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