Warning over rise in online counterfeit products in South Africa

The rapid growth of online marketplaces in South Africa has brought with it a surge in counterfeit goods, particularly on platforms like Facebook Marketplace, Gumtree, TikTok, and WhatsApp.

Consumers are being lured by the convenience and affordability of these platforms, but they often fall prey to scams and fraudulent activities.

Hashiem Logday, an expert in intellectual property and anti-counterfeiting at Adams & Adams legal firm, warns that “in recent years, we have witnessed explosive growth of online marketplaces and the increasing prevalence of e-commerce businesses.”

This shift in consumer behavior, where people prefer to shop from the comfort of their homes, has created opportunities for counterfeiters to exploit.

The risks of online shopping

Logday outlines several risks associated with buying from online resellers or “runners”.

These include:

• Being scammed: Consumers may pay for products that never arrive.
• Receiving counterfeit goods: Products may be inferior counterfeit versions.
• Unknowingly purchasing stolen goods: Products may have been stolen and are being resold.

The rise of counterfeit goods on social media

Logday said that the prevalence of counterfeit goods being sold on social media platforms, particularly TikTok, is alarming.

He points out that some individuals even host “virtual tours” of stores, often claiming to represent reputable brands, showcasing products that are sold for a fraction of the retail price.

These “tours” often originate from dubious sources, further increasing the risk for consumers.

Fake websites mimicking legitimate brands

Another concerning trend is the emergence of fake or spoof websites that mimic genuine brand sites.

“These fake or spoof websites, mimic genuine brand sites and prey on the consumers’ lack of attention to detail,” said Logday.

These websites often have slight misspellings in their domain names or use misleading redirects to deceive consumers.

They can even appear at the top of Google search results, making it difficult for consumers to distinguish them from legitimate websites.

The bait

South Africa’s current economic challenges have made consumers more vulnerable to counterfeit goods.

The desire to save money often leads people to chase deals and discounts, putting them at risk of compromising their personal information or banking details.

Logday cautions: “Given South Africa’s current economic challenges, more consumers are vulnerable to these threats as we often chase deals and discounts.”

He emphasises that trying to save a few hundred rands could actually result in significant financial losses.

Tips for safe online shopping

Logday provides practical tips for safer online shopping:

• Check the website name carefully: Ensure it matches the legitimate brand.
• Be wary of extreme discounts: A 90% discount is a red flag.
• Review the privacy policy and terms and conditions: Look for misaligned text or different fonts, as these could indicate a fake website.
• Exercise extreme caution with online resellers and second-hand dealers: Understand the risks and take extra precautions, such as meeting in a public place or at a police station and not transferring money before receiving and inspecting the item.

Vigilance is key

In today’s e-commerce world, vigilance is crucial.

Logday reminds us that “the convenience of online shopping should not come at the expense of your financial security or personal data.”

By staying informed and cautious, consumers can protect themselves from scams and enjoy the benefits of online shopping.

Read: 5 well-known franchises that have disappeared across South Africa