Buyer Beware: OpSec Offers Tips for Spotting Fakes This Holiday Shopping Season

Boston, MA — OpSec Security, Inc., the global leader in anti-counterfeiting and brand protection, today revealed the results of an industry snapshot that examined consumer products listed on popular business-to-business trade boards. Counterfeiters often flock to e-commerce sites, such as Alibaba, DHgate, EC21, Made-in-China, and TradeKey, to sell illicit goods in bulk at suspiciously low prices. In light of these findings, OpSec also shares tips for consumers on detecting fakes when shopping for gifts this holiday season in a review of products in the following categories: watches, toys, coffee makers, digital cameras, and denim.

Key findings from this industry snapshot include:

• The watch category contained more than 1.3 million listings. Fossil brand watches had an average quantity of 206,000 units based on a random sampling of listings. From OpSec’s years of experience in analyzing activity on these platforms, a large percentage of branded accessories offered on trade boards are counterfeit. At an average retail price of $75 per unit, the total retail value of a typical listing was estimated at $15.45 million, an indication of significant potential sales loss for the actual brand.

• The toy category contained more than 2.7 million listings. For the popular Dora the Explorer brand, an average quantity of 448,000 units per listing was found. A sampling revealed products selling at various price points, including some at extremely low prices, a typical indicator of counterfeit merchandise. Examples of infringing listings include prominent placement of Nickelodeon’s trademark and copyright as displayed here.

• Numerous listings were identified for coffee machines. In a random sampling, a Delonghi coffee maker model was listed with an average quantity of 420,400 units. Unauthorized copyrighted images were used to advertise the Delonghi brand and product line, which present the possibility that the buyer may receive a counterfeit version rather than what is displayed in the stock photo.

• To advertise for the holiday season, sellers have been found to advertise specials and reduced prices to attract buyers.  One listing in digital cameras mentions a reduced price for the Christmas season with sellers advertising non-brand name products that boast the use of Sony parts and technology.

• In the popular premium denim sector, 7 for All Mankind jeans were found with an average quantity of 92,000 units available per listing. Such high quantities are an indication that these products could be counterfeit or diverted. At an average selling price of $159 per pair of jeans, the total retail value per listing was estimated at $14.63 million.

“Fueled by the popularity of online shopping and an economy that pushes consumers to seek ‘too good to be true’ bargains, counterfeiting is quickly expanding into sectors beyond luxury goods,” said Tom Taylor, president, Brand Protection, OpSec Security. “With the holiday shopping season upon us, it is important for consumers to protect themselves from purchasing substandard and potentially dangerous products. Counterfeiters will cut corners by substituting low cost ingredients, materials and parts that can be harmful, like urine or toxic materials in perfumes, and malfunctioning batteries or harmful materials in toys and electronics.”

OpSec works with the world’s largest brands to prevent counterfeiting, protect brand reputation, stem the loss of sales, and safeguard consumers from unknowingly purchasing substandard products. To raise awareness on the dangers of counterfeiting, OpSec offers the following guidelines that consumers should keep in mind when shopping for gifts both in-store and online this holiday season:

• Buying online? Research the website: While the Internet has given counterfeiters a way to reach consumers, it has also provided the opportunity for buyers to share information on whether or not a reseller is providing authentic wares. It is a good idea to purchase goods direct from the brand manufacturer, or a store or website authorized to sell that brand. If you do choose to shop from an unknown online shop, conduct some research first on what people are saying about the e-commerce site. You may be able to determine whether the reseller is offering authentic goods or fakes based on feedback left from previous buyers.
• Check the logo: A common indicator of counterfeit goods is a misspelling or distortion to a label or logo. When purchasing a product, know the logo of the desired brand and look for any sort of variation on the product in question.
• Research the product before purchasing: When purchasing luxury goods, such as a watch or jewelry, knowing the features and design on the product is advised. This is especially important when buying from a reseller. Having a picture of the genuine product on hand is helpful in identifying suspicious attributes that would indicate that the product is counterfeit.
• Research where the product is made: Some luxury products are made in Europe while other brands are manufactured in Asia. Researching where a brand’s main manufacturing facilities are located can help determine the authenticity of a product. The Far East is a known hub for counterfeit products. If a brand’s manufacturing facilities are located in Europe, but the product is toting a “Made in China” label, this should raise suspicion. 
• Are there missing components and information? Oftentimes, counterfeit electronics are sold without necessary and important items ranging from USB cords, instructions, warranty information, and missing serial numbers on the product or packaging. Checking all contents of the product before purchasing will decrease the likelihood of buying a counterfeit product.  
• Is it a legitimate model? Some consumer electronic brands have an extensive list of models. Counterfeiters may attempt to pass off a non-existing model number as an authentic product. Check whether the product model is sold by the official manufacturer. If it does not exist on the manufacturer’s catalog or website, it is a sure sign it is a fake.

About OpSec Security

OpSec Security, Inc. is a wholly-owned division of OpSec Security Group plc (London AIM: OSG). OpSec Security is the global leader in providing anti-counterfeiting technologies as well as solutions and services for physical and online brand protection to over 300 companies across industry sectors and over 50 governments worldwide. The Group operates manufacturing facilities and laboratories in the USA and the UK, and has sales operations in the Americas, Europe, and Asia