eBay Consumers Sold Over 686,000 Counterfeit Products

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

July 19, 2017, Los Angeles, CA – E-commerce giant eBay (EBAY) has a big counterfeit problem and consumers suffer 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 686,000 items to eBay consumers. The tiny sample group was not purses, watches 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 rights holders, sent trademark infringement notices for over 1,919,000 counterfeit items. eBay will remove counterfeit listings when notified by the trademark rights holders, but not proactively.

• 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 hundred-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, cell phone case manufacturer Wimo Labs, LLC sued eBay in Federal Court after making 5,557 notifications to eBay that it was hosting the sale of counterfeit metal versions of its popular LUNATIK® polymer cell phone cases in materials, models and colors not even available from the manufacturer. The Counterfeit Report purchased and reported over 200 of the counterfeit phone cases. Over 200,000 were sent to innocent and duped eBay buyers who were never notified they received a fake. The lawsuit was settled and sealed last month, but the fake LUNATIK® cases continue to be listed.

The Counterfeit Report identified over 1.6 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 fraudulent and fake items depicted in pictures below? Nothing, as the items, which don't even exist in the manufacturer's authentic product line, remain for sale on eBay's website.

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.

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. eBay has become the perfect platform to enable and facilitate criminal activity and benefit from the proceeds of dishonest actions. These practices impact jobs, consumer safety and public trust using deception with impunity. Counterfeiting costs U.S. manufacturers over $250 billion, and U.S. workers over 750,000 jobs.