Online counterfeit surge amid COVID-19, warns EUIPO report
The growth in e-commerce sales of counterfeit goods poses a “serious and growing risk” to economic growth in the wake of the COVID-19 pandemic, according to a new study.
The study “Misuse of E‑Commerce for Trade in Counterfeits” was published Monday, October 25, 2021, and analyses the growing number of online counterfeit sales.
The joint report from the European Intellectual Property Office (EUIPO) and the Organisation for Economic Co-operation and Development claims that the rise in e-commerce has accelerated the trade of infringing goods.
According to the report, 56% of all customs seizures at EU borders involved e-commerce.
“The results are a cause for concern,” the report claims. “Counterfeit sellers have flourished on e-commerce markets, as it is relatively easy to set up sites that sell counterfeit items. Moreover, they continue to find new ways to infiltrate trusted platforms with their counterfeit products.
According to the study, the COVID-19 pandemic has intensified the problem of criminal networks, which have reacted quickly to the crisis and adapted their strategies to take advantage of the shifting landscape.”
E-commerce breakdown
The report shows that the vast majority of online commerce consists of business to business (B2B) transactions, comprising 82% of the value, with business to consumer (B2C) accounting for the remaining 18%.
B2C e-commerce rose by 41% in major economies between 2018 and 2020, a growth likely fuelled by the COVID-19 pandemic as consumers ordered online during lockdowns and to avoid frequenting shops.
The study noted that during the pandemic, the online environment also became a more popular target for illicit trade, as cyber law enforcement reported increasing volumes of various e-crimes, including offerings of illicit goods, among them fake and substandard medicines, test kits and other COVID-19-related goods.
EU detentions of counterfeits linked to e-commerce included a broad range of products, led by footwear (34% of total detentions), clothing (17%), perfumes and cosmetics (10%), leather articles (9%), electrical machinery and equipment (7%), toys (6%) and watches (5%).
China is responsible for more than 75% of seizures of counterfeits globally. Hong Kong is second but represents only 5.7% of seizures with Turkey coming in third with 5.6%.
The executive director of the EUIPO, Christian Archambeau, said: “E-commerce has enhanced consumer choice, and offered businesses new, flexible ways of market access. At the same time, there is ample evidence that the online environment has also attracted bad actors, who pollute e-commerce distribution channels with fakes.
“The EUIPO is working hand in hand with a number of e-commerce marketplaces, right holders and institutional partners to help tackle online infringements of intellectual property rights.”
The full report can be read here.
