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PULPOU BLOG
Trademark Counterfeiting: How to Avoid Falling Victim to Digital Pirates' Scams
The exponential growth of e-commerce in recent years and the proliferation of new payment methods have given rise to a new type of scammers: digital pirates. What is this profile of swindlers, and how can consumers and brands prevent them? Additionally, the first event in Latin America, dedicated to this topic, aimed at protecting individuals and companies.
The dangers faced by both brands and users of online marketplaces today add several items to the list. Whether purchasing from well-known marketplaces or small-scale profiles on social media, anyone can fall victim to a scam when buying a product or, worse yet, put their own life at risk.
This was the case with Atom-Protect masks. Their manufacturing company, Kovi SRL, had to involve the Argentine Federal Police in 2020 to remove adulterated products from the market. Following the investigation, authorities uncovered a criminal organization, leading to arrests, seizures of machinery and raw materials for product manufacturing, and the confiscation of 50,000 counterfeit masks valued at 30 million pesos. The scammers distributed and sold them, counterfeiting the brand without commercialization authorization or compliance with the sanitary measures required by ANMAT.
The brand also faced significant danger: its reputation was at stake. Although Alan Gontmaher, the company's CEO, quickly urged consumers to buy through the brand's official website or accredited pharmacies and recommended "never buying through social media or dubious channels," the damage without timely intervention could have had serious consequences.
Gontmaher will be one of the speakers invited to the Brand Protection Day: the first brand protection event in Latin America. The event will take place online on December 2, and registration will be free. During this first edition, other successful company cases will be presented, such as the renowned Tupperware, a brand that became synonymous with that type of container. Additionally, there will be space to address the issues faced by Telecom Argentina with its brand Flow in the online world.
Specialists in intellectual property and representatives of various Anti-Piracy Associations in LATAM will provide their perspectives on the impact of the pandemic on the supply of counterfeit products published in online stores. Mercado Libre will be one of the most anticipated panels: Juan Cichero, head of the company's Brand Protection Program, will share details about its scope and how companies within the marketplace can join.
Keys to Avoid Falling Victim to Online and Social Media Scams
For Gabriel Pasqualini, Director of Pulpou and creator of Brand Protection Day, there are several signs that could alert consumers to a potential scam on online buying and selling portals.
Unbeatable Price: If a product we are looking for in other listings averages $1000 and in the suspicious listing is $750 or lower, a 25% difference, it raises an alert. In such cases, identify if the product has a discount, as that would be normal. If not, it should catch the user's attention.
Descripciones erradas. Otro de los ítems fundamentales es ver la descripción en las imágenes y los textos. Hoy en día la mayoría de las marcas cuentan con tiendas oficiales y certificadas dentro de las plataformas en las que ofrecen sus propios productos, allí se puede observar qué tipo de ítems ofrecen, de qué manera están dispuestas las fotos, qué descripciones tienen, y dónde ubican sus logos. También, poner el foco en las medidas de los productos, los talles y las especificaciones particulares de cada uno.
Incorrect Descriptions: Another key item is to check the description in the images and texts. Nowadays, most brands have official and certified stores on platforms where they offer their own products. There, you can observe what types of items they offer, how the photos are arranged, what descriptions they have, and where they place their logos. Also, focus on the product measurements, sizes, and specific features of each one.
Who is the Seller? Identifying the seller is crucial: if it is an official store, it will not be a counterfeit product, as they are invited by marketplaces to participate in their platforms and have prominent and reliable sales spaces. If not, it is recommended to identify the seller's reputation if they have enough ratings.
Pay Attention to Comments and Reviews: Only those who have made effective purchases with the seller can provide opinions on listings. There cannot be false or ambiguous comments, so they will be filtered based on their purchase experience, whether good or bad.
Questions and Answers Are Critical: Users often ask if the products are original or counterfeits. Sellers, to avoid legal issues when dispatching the product, usually respond that "it's the same" or "it's of the same quality as the original," which can identify a violation. Asking in listings that offer products as "original" can be the user's protective shield. Inquire: "Is it certified or under the program of a particular product approved by a specific company?" This will be decisive.
The Mantra: Do Not Buy Outside the Platform: This loses the protection that each marketplace can provide. Many times, the user identifies the name of a seller, searches for them, and accesses their online store or social media and buys through those means because they may offer a discount to avoid platform commissions. This temptation for the user can be the worst mistake. The user will not be protected by the platform's buying mechanism and will not have the benefit of free returns if dissatisfied and identifies that the product purchased is fake. Buying through the marketplace allows returning the item and getting a refund.
Quantity of Stock Offered: Contrary to what we might think, an original brand product usually does not have much stock available on platforms, or they renew it as it sells. Counterfeiters generally have ample stock because they often import them in containers and need to sell them quickly. This is an alert that users rarely check.
Brand Counterfeiting in Latin America
Last year was unique, as the counterfeiting industry, which typically operated physically through street stalls or fairs, moved online due to isolation. This led to many more counterfeits being registered, forcing companies to take action. "A few years ago, based on user analysis and complaints, it was found that between 1 to 6 or 8 of the products listed on marketplaces might not be original," says Pasqualini.
The most affected categories are clothing and textiles, where the highest volume of violations occurs. Regarding technology, being a more expensive sector, it is harder to replicate, but it does happen in smaller tech products like headphones or phone charger cables, and also in related items like phone cases.
Regarding Brand Protection Day, the executive comments that "brands are even more aware of the importance of protecting intellectual property in times of free internet. As many have started selling online, counterfeiting practices have also increased, and knowing how to defend against them is crucial."
"Moreover, with the use of social commerce or sales through social media, another realm of piracy has emerged. It is not just about prices; many times, it is thought that a cheaper product is counterfeit, which is not always the case. Scammers now even set prices similar to the original, complicating the investigation of whether it is fake or not," adds the eCommerce site intervention specialist.
What About Digital Wallets and Card Usage? Nowadays, the payment situation is entirely different: there is more trust in using credit cards, which previously generated skepticism among online buyers, and virtual wallet payment options have proliferated, along with criminals' tricks to avoid operating on platforms to avoid being tracked.
"In a region like Latin America, where there is no price awareness and we are used to first checking the online price of a product before buying it in a store to see if it is within a reasonable price range, the online offer is the digital shelf where we can see, compare, and analyze. This exercise is done not only by consumers but also by brands when setting their pricing strategy. A proper analysis of the product to buy can determine whether or not one falls into a scam," concludes Pasqualini.
Free registration and complete agenda at: www.brandprotectionday.com
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