In brief
- UK shoppers spent over £25 billion online last year during the holiday season. Whilst the hunt for the perfect gift at the perfect price can be exciting, it also presents opportunities for counterfeiters to exploit unsuspecting consumers.
- The adverse impact of counterfeit goods on both businesses and consumers is immense, both from a monetary and health and safety perspective.
- Review our tips below on avoiding counterfeits and what to do if you have purchased one.
Counterfeits for Christmas
Increasing spending at the Christmas period, combined with time pressured consumers, creates ideal conditions for counterfeiters. No product category is immune - from toys and tools to food and cosmetics.
These fake products don't just raise concerns about trade mark infringement or diverting profits from businesses; they can pose serious health and safety risks, particularly electrical items, toys, and cosmetics that have not undergone proper safety testing.
Counterfeit victims either lose their money entirely or receive unsafe items. Worse still, they may have their identity or bank details stolen. The counterfeit trade also helps fund serious organised crime groups involved in weapons, drugs, slavery, human trafficking, and prostitution.
The Labubu phenomenon
Labubus are one of this year's most sought-after Christmas toys, but they are not in the news solely for this reason. The recent explosion in popularity of these toys perfectly illustrates how quickly counterfeiters can capitalise on trending products. With genuine Labubus selling out rapidly and commanding premium resale prices, counterfeiters have flooded online platforms with fake versions. Hundreds of thousands are being seized at the UK borders by Customs.
Red flags: how to spot and avoid buying counterfeits
Here is what you need to know to protect yourself and your loved ones this festive season.
- Rushing leads to mistakes.In a rush, people fail to properly check from whom or where they are buying products.
- If it is too good to be true, it usually is.Very low, unrealistic pricing usually indicates a counterfeit product. You can check the price of the product across multiple websites which may help determine what it should be. Trust your instincts.
- Use legitimate websites.Avoid websites with strange URLs, e.g., xmasdeals2o26.net. Other red flags include missing business or contact information, spelling errors and missing pages on the website.
- Social media.Instagram, Facebook, TikTok, and WhatsApp groups have become popular platforms for selling counterfeits. Be especially cautious of accounts with limited history or followers. The Labubu craze has seen a particular surge in social media sellers offering allegedly genuine figures at suspiciously low prices.
- Payment methods.Be wary of sellers who only accept cash, wire transfers, or cryptocurrency. Legitimate retailers offer secure payment options with buyer protection. Use a credit card for added protection. Many card companies have fraud protection teams that can help recover your money.
- Check authorised stockist lists on brands' websites to verify legitimate retailers.
- Check reviews on online marketplaces. Whilst reputable platforms work to remove counterfeit listings, they remain a source of counterfeit goods. Always check seller ratings and reviews carefully. Be suspicious of generic, overly positive reviews.
- Avoid deals using urgency tactics (low stock, rarity) to pressure you into buying.
Can you get in trouble for purchasing a counterfeit product?
Purchasing counterfeit goods, even unknowingly, can have consequences. Whilst individual consumers are rarely prosecuted, importing counterfeit goods can result in items being seized by Customs, and in some cases, fines.
For businesses, the stakes are much higher. Selling counterfeit goods can result in:
- Criminal prosecution
- Substantial fines
- Imprisonment
- Civil litigation from brand owners
- Seizure of goods and assets
- Reputational damage
Brand owners have extensive IP rights to protect their products. They actively monitor the market and pursue legal action against counterfeiters.
What to do if you have purchased a counterfeit product
If you suspect you have bought a counterfeit product:
- Stop using it immediately, especially if it is an electrical item, toy, or cosmetic product.
- Report it to the retailer or platform where you made the purchase.
- Contact your bank or credit card company to dispute the charge.
- Report it to Trading Standards via the Citizens Advice website.
- Report it to the brand owner, as most actively pursue counterfeiters.
- Report it to the Police Intellectual Property Crime Unit (PIPCU) and Action Fraud, the UK's national fraud reporting centre.
Takeaways
By avoiding counterfeits, you protect yourself whilst supporting legitimate businesses, jobs, and innovation. For artists like Kasing Lung who created Labubus, counterfeits directly impact their ability to create and profit from their original work.
This Christmas, take the time to shop smart. The few pounds saved on a counterfeit product are not worth risks to health, safety, and security. Whether buying the latest trending collectible like a Labubu or more traditional gifts, stick to authorised retailers and be wary of deals that seem too good to be true. Genuine products come with guarantees, proper safety standards, and peace of mind. Here is to a safe and very merry Christmas.
How Mishcon de Reya can help
Our Intellectual Property team advises brands and businesses on protecting and enforcing their rights against counterfeiters, both online and offline. The team works closely with clients to develop proactive brand protection strategies, pursue infringers through civil and criminal routes (including private prosecutions), and collaborate with law enforcement and Customs to remove fake goods from the market. If you have any questions about counterfeiting, brand misuse, or grey‑market trading, please contact our Intellectual Property team.