Crackdown on counterfeit goods in e-commerce uncovers widespread violations

Market Surveillance Force, Hanoi Police inspect violating establishments in October 2024. Source: General Department of Market Surveillance

Celebrities used for livestream

On November 5, 2024, the Department of Market Surveillance, in a coordinated operation, seized dozens of electric vehicles with unclear origins in Long Bien District, Hanoi.

Further inspections of e-commerce platforms revealed that various types of goods promoted on the website xedienmanhphat.vn were available for purchase. Despite offering online ordering, this website had not registered with the relevant state authorities.

On TikTok, the account “Xe điện M.P” also showcased products in videos to over 200,000 followers, attracting more than 3.3 million likes, with each post drawing thousands to hundreds of thousands of interactions.

According to Tran Huy Hai, Deputy Head of Technical Division 1 at the Market Surveillance Department, inspections identified three main violations at this business location: selling at multiple sites without notifying the district business registration agency, trading goods with unclear origins, and failing to register an e-commerce website with online ordering functionality.

A Ministry of Industry and Trade report noted that most e-commerce violations involve merchants establishing warehouses near border areas and setting up livestream points in major cities to facilitate sales and delivery via third-party couriers. Accounts promoting these products are scattered across various locations, with many businesses using high-profile influencers to drive sales through livestreams.

Due to fast inventory turnover, these warehouses typically stock large quantities and a wide variety of goods, which change frequently.

Major hotspots for these activities include Hanoi, Ho Chi Minh City, An Giang, Long An, Khanh Hoa, Lang Son, Da Nang, Lao Cai, Quang Ninh, and Bac Ninh. Previously, smugglers handled transport directly or hired carriers; now, items are often hidden in parcels sent through delivery services, using unregistered phone numbers, making detection challenging.

Common violations include smuggling, counterfeit goods, health-related items, pricing discrepancies, measurement standards, and goods labeling. Counterfeit and smuggled items—often violating intellectual property rights—are typically gathered at border areas or transit warehouses before being distributed domestically.

In prior cases, the Cybersecurity and High-Tech Crime Prevention Department (A05) of the Ministry of Public Security worked with local authorities to uncover large warehouses in Hanoi, Hung Yen, Bac Giang, and Lao Cai containing hundreds of thousands of items with unknown origins, many counterfeiting major brands like Nike, Adidas, Gucci, and Nano J.Plus. These counterfeit goods were directly produced and sold via social media livestreams.

Tightened controls for year-end

Tran Duc Minh, a legal expert at S&O Intellectual Property Co., emphasized that to verify product authenticity, customs and market surveillance units should submit images of items—such as product labels and packaging—to brand representatives for validation.

"Each month, we organize training sessions for enforcement officers to enhance their ability to identify counterfeit goods. This enables more effective tracking of fake and origin-unknown products. We also urge consumers to check official distributors before purchasing to avoid fake or substandard goods,” said Minh.

To combat counterfeit and substandard goods in the last months of 2024 and ahead of the Lunar New Year in 2025, Tran Huu Linh, Director General of Market Surveillance, has called for targeted plans focusing on key routes, areas, suspects, and high-demand items.

The department aims to closely monitor items with high year-end demand, such as tobacco, alcohol, beer, beverages, sugar, food products, electronics, clothing, footwear, livestock, poultry, and fireworks. Inspections will cover e-commerce activities on platforms like online marketplaces, websites, and social networks such as Facebook and TikTok, assessing product quality, compliance with national standards, food safety, and goods labeling requirements.