Prevent counterfeit goods on e-commerce platforms

Counterfeit goods are diverse in items and types. In the photo: Products displayed at the Genuine-Counterfeit Goods Showroom, General Department of Market Surveillance. Photo: Quang Hung

Counterfeiting changes with technology

Over the past time, the number of violations and handling in the e-commerce environment has constantly increased, with the nature of violations and complicated developments.

Infringing goods are not only common consumer goods but many items such as supplemental foods, cosmetics, medicines, electronic cigarette products that are counterfeited in large quantities and traded on e-commerce platforms, and directly affecting the consumer health.

The results of the Market Surveillance force’s show that the number of administrative violations related to prohibited goods, smuggled goods, counterfeit goods, healthcare, prices, price listings, measurement standards, and product labels detected by the Market Surveillance force, decreased compared to the same period in 2023.

However, violations of origin, infringement of intellectual property rights, and food safety in the e-commerce field increased compared to the same period in 2023.

In the first 10 months, the Market Surveillance force inspected 61,079 cases, detected and handled 41,725 violations. The total amount of fines was VND777 billion, up 19% compared to the same period in 2023.

The Market Surveillance force inspected 2,606 cases, handled 2,361 violations, and fined over VND38 billion, with the value of infringing goods related to e-commerce of about VND 32 billion. Common acts are trading in smuggled goods, goods of unknown origin, infringing intellectual property rights, violating regulations on e-commerce business.

According to the Director General of the Vietnam Directorate of Market Surveillance, Tran Huu Linh, counterfeiters constantly have sophisticated and diverse methods and tricks to deceive authorities and consumers. Earlier, labeling was used to prevent counterfeit goods, now this is one of the methods that counterfeiters take advantage of to outsmart authorities and consumers.

Therefore, with the development of technology, there are many ways to prevent counterfeit goods, such as instead of using paper labels, many brands use QR Code, AI, Blockchain technology... However, the fight against between counterfeit products and authentic products, and between legitimate producers and those who are abetting commercial fraud.

Mr. Linh said that as e-commerce develops and becomes more convenient for people, the situation of commercial fraud, especially counterfeit goods, fake goods, goods infringing on intellectual property rights, and goods of unknown origin, is increasing and diversifying.

“Development of e-commerce has facilitated people but increased commercial fraud, especially counterfeit goods, goods infringing on intellectual property, goods of unknown origin” Linh said.

Infringing goods appear more and more in the domestic market, thereby arising a huge problem for the subjects. The first is the management responsibility of State agencies, businesses - brand owners, especially consumers.

Therefore, in order to by authentic products and avoid buying counterfeit goods, fake goods, and goods infringing on intellectual property rights is an important content in protecting consumer rights.

Need close coordination

Responding to the development of e-commerce, in 2023, the Vietnam Directorate of Market Surveillance advised the Ministry of Industry and Trade to submit to the Government to sign and issue the Project on anti-counterfeit goods and consumer protection on e-commerce until 2025. This is a key project that the Government, ministries, branches and units focus on implementing.

To effectively implement the Project, the Ministry of Industry and Trade has set out four key task groups such as policy adjustments; information dissemination; strengthening inspection and control and especially installing equipment, tools and online technical devices to detect violations on e-commerce.

Recently, at the signing ceremony of the memorandum of understanding between the Vietnam Directorate of Market Surveillance and the Department of Security Industry, Ministry of Public Security, Mr. Tran Huu Linh said that current policies related to e-commerce management are still insufficient and need to be revised, such as the Decree on e-commerce.

Earlier, the Decree aimed to develop e-commerce, so it was relatively open. However, with the current rapid growth of e-commerce, there needs to be solutions for stricter management.

It is time to regulate and treat the online environment like the offline environment, and to identify buyers and sellers.

The leader also hope that the two units will coordinate to provide solutions on policies and technical tools and devices to effectively implement this work.

Although the units have deployed solutions to prevent counterfeit goods, in reality, there have not been optimal solutions or technical measures to effectively prevent counterfeit goods.

For example, Korea still uses QR code to stick directly on each agricultural product, helping consumers identify genuine products.

According to Mr. Nguyen Thanh Trang, Director of the Department of Security Industry, the department has focused on preventing counterfeit goods and trade fraud, especially in e-commerce.

In recent times, the police force has closely coordinated with the local market surveillance forces to detect and handle many violations in this field in both traditional and e-commerce markets. However, to effectively perform this work, close coordination between enforcement forces is needed to meet people's expectations.

The Department of Security Industry has cooperated with the Vietnam Directorate of Market Surveillance to implement solutions to combat online sales of counterfeit items, which show the determination of enforcement forces in promptly detecting and preventing violations in e-commerce, and protecting businesses as well as consumers.