Here’s What Can Happen When You Buy a Counterfeit Product Online — and How to Avoid Doing It

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Counterfeit products flood the market. Here’s what you need to know to protect yourself. 

By the end of 2023, the global e-commerce market is expected to total $6.3 trillion. And, according to Shopify, by 2024, 21.2% of total retail sales will happen online. While the ability to shop without changing out of pajamas is convenient, online shopping gives counterfeiters access to countless customers every day.

But what about you? What happens when you’re stuck holding the (fake) bag, golf clubs, art work, or other counterfeit purchases?

Knowing what you’re looking for may not be enough to protect you online

Let’s say you’re in the market for a gently used Coach handbag, and a local swap-and-shop vendor has one for sale. It takes you mere moments to realize the bag is fake. The metal holding the leather straps together is ribbed instead of smooth, there’s a misspelling in the story patch on the inside of the flap, and the letter “A” on the hang tag is flat. You’re able to avoid paying for an obviously fake item.

It’s not quite so easy when you’re shopping online. The seller may offer all kinds of photographs, but there’s no way to know for sure whether the seller will send the item in the photos or will replace it with a far less valuable fake.

The potential for crime is not lost on the U.S. Department of Homeland Security. In a report called Combating Trafficking in Counterfeit and Pirated Goods, the department wrote, “Many consumers are also unaware of the significant probabilities they face of being defrauded by counterfeiters when they shop on e-commerce platforms. Even those consumers motivated to conduct research and stay informed might lack the specialized knowledge and efficient user tools to make diligent online buying decisions.”

Yes, you’re getting ripped off when you unknowingly purchase a counterfeit product, but does it really matter in the scheme of things? Here’s some of what happens when counterfeit goods are purchased.

Criminal organizations have money to expand their operations. The National Crime Prevention Council (NCPC) reports that international organized criminals regularly use counterfeit operations to fund illegal activities like gang violence, child labor, and human trafficking.

You, or someone you love, could be seriously injured. Also, according to the NCPC, counterfeit items (such as faulty electronics) cause over 350,000 serious injuries and 70 deaths each year. While purchasing a cheap car seat may leave extra money in your bank account, it’s never worth the risk to a child. Wirecutter reported being able to purchase a toddler airplane safety harness with a label claiming it was “FAA approved.” With cheap plastic buckles, weak stitching, and no lock to keep the straps in place, it was clearly an unsafe product.

You could become sick — very sick. A whopping 67.2% of counterfeit products seized by U.S. Customs and Border Protection in 2022 were pharmaceuticals. There’s no way to know where they were manufactured or to access a list of ingredients. There’s no doubt that U.S. healthcare is expensive, but cutting corners by purchasing fake medications can be dangerous.

How to protect yourself

Anything can be counterfeited, from electronics to medication. And because it can be difficult to tell dupes from originals, it’s up to you to protect yourself. These rules can help:

If something sounds too good to be true, assume it’s a fake.If you can’t personally inspect an item before making a purchase, think twice. Buy only from reputable sellers that guarantee authenticity. In other words, if you find that you’ve purchased a fake item, the seller will refund your money.When shopping on a site such as Walmart or Amazon, pay attention to who the actual seller is. Both retailers work with thousands of third-party vendors. Once you notice that the product you’re interested in is sold through a third-party vendor, do an online search for information about that company. More importantly, check out their return policies. Be particularly wary of products made in specific areas. According to U.S. Customs and Border Protection, nearly 80% of counterfeit products originate from China and Hong Kong.

Finally, make all online purchases using a credit card. If the item you receive is a counterfeit and the seller refuses to reimburse you, you can contact the credit card issuer and dispute the charge.

While fake handbags, jewelry, and tennis shoes may seem like no big deal, counterfeit products cost the global economy over $500 billion annually, according to the U.S. Chamber of Commerce. It also undercuts businesses that manufacture and sell legitimate merchandise.

If you receive a counterfeit item, report the incident by calling (800) BE-ALERT (800-232-5378), or by making a report with the CBP at eallegations.cbp.gov.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dana George has positions in Amazon.com and Walmart. The Motley Fool has positions in and recommends Amazon.com and Walmart. The Motley Fool has a disclosure policy.

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