Less than 50% of consumers who purchased counterfeit goods asked for refunds, report finds

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Less than 50% of consumers who purchased counterfeit goods asked for refunds, report finds

Employees from the Seoul Metropolitan Government’s Special Police Bureau for Citizens' Livelihood & Safety organizes counterfeit bags and other confiscated items at the Namsan annex of Seoul City Hall in Jung District, central Seoul, on Feb. 20. [NEWS1]

Employees from the Seoul Metropolitan Government’s Special Police Bureau for Citizens' Livelihood & Safety organizes counterfeit bags and other confiscated items at the Namsan annex of Seoul City Hall in Jung District, central Seoul, on Feb. 20. [NEWS1]

 
Less than half of consumers who unknowingly purchased counterfeit goods online asked for refunds, citing complicated procedures or small amounts of money involved, according to a survey released Tuesday by the Korea Consumer Agency (KCA).
 
The agency surveyed 1,000 consumers over the past year who had purchased counterfeit goods from eight platforms: Naver Smart Store, 11Street, AliExpress, Gmarket, Coupang, Temu, Naver Band and Instagram.
 

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Of the respondents, 500 said they knowingly bought counterfeits while the other 500 said they did not. Bags were the most common item among those who knowingly bought counterfeits, accounting for 38.8 percent, while shoes topped the list for those who did not at 43.8 percent.
 
Among those who unknowingly purchased counterfeits, 58.6 percent did not request a refund. Of that group, 60.4 percent said refund procedures were too complex or time consuming, 24.6 percent said the amount of money involved was too small and 8.5 percent said there was little difference from the genuine products.
 
The survey also found that consumers who knowingly bought counterfeit products showed low awareness of intellectual property rights. 
 
When asked about the problems of buying counterfeits, 45.4 percent said they “did not know” and 23 percent said they “did not feel there were any.” When asked who should be responsible for counterfeit purchases, 45.4 percent pointed to sellers, 37.3 percent to online platforms and 17.3 percent to consumers.
 
An employee from the Seoul Metropolitan Government’s Special Police Bureau for Citizens' Livelihood & Safety holds up a confiscated counterfeit watch at the Namsan annex of Seoul City Hall in Jung District, central Seoul, on Feb. 20. [NEWS1]

An employee from the Seoul Metropolitan Government’s Special Police Bureau for Citizens' Livelihood & Safety holds up a confiscated counterfeit watch at the Namsan annex of Seoul City Hall in Jung District, central Seoul, on Feb. 20. [NEWS1]

 
The KCA also reviewed 1,572 consumer counseling cases related to counterfeit goods on online platforms between 2022 and February this year.
 
Bags accounted for the largest share with 21 percent, or 330 cases, followed by shoes with 14.5 percent, cosmetics with 12.5 percent, audio devices with 10.9 percent and clothing with 9.4 percent. That translates to 228, 196, 171 and 147 cases, respectively.
 
Luxury bags were consistently among the most reported items, along with Dyson hair dryers and hair irons and Apple earphones.
 
A price comparison study showed that 72.5 percent of 40 items checked on Chinese platforms AliExpress and Temu were sold at less than 20 percent of official retail prices. On Naver Band and Instagram, 59.2 percent of 27 items were offered at less than 20 percent of retail prices.
 
More than half of these listings used terms such as “genuine-grade” or “mirror-grade genuine leather” to hint at counterfeit products. Two-thirds directed customers to external channels or were operated through private groups. In some cases, genuine product photos were used in product listings.
 
An employee from the Seoul Metropolitan Government’s Special Police Bureau for Citizens' Livelihood & Safety organizes counterfeit bags and other confiscated items at the Namsan annex of Seoul City Hall in Jung District, central Seoul, on Feb. 20. [NEWS1]

An employee from the Seoul Metropolitan Government’s Special Police Bureau for Citizens' Livelihood & Safety organizes counterfeit bags and other confiscated items at the Namsan annex of Seoul City Hall in Jung District, central Seoul, on Feb. 20. [NEWS1]

 
The agency criticized some platforms, including Naver Band, AliExpress, Coupang and Temu, for not disclosing counterfeit-reporting procedures on help or FAQ pages, instead only offering guidance through one-on-one consultations. 
 
The KCA urged consumers to exercise caution, saying, “Products sold at excessively low prices are highly likely to be counterfeit.”
 
The agency said it will share its findings with relevant government ministries and has asked online platforms to prepare stronger measures to block counterfeit sales, restrict the use of counterfeit-related terms and provide clearer refund procedures in advance.


This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY HAN YOUNG-HYE [[email protected]]
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