Summary
The post examines the increasing problem of counterfeit products being sold by vendors on Indian e-commerce platforms. It references legal actions taken by brands such as L’oreal, Tommy Hilfiger, RayBan, and Skullcandy against online marketplaces like ShopClues for alleged trademark infringement. The post also discusses Snapdeal’s encounter with the issue and highlights the measures taken by leading platforms, including the use of mystery shoppers and stringent seller verification, to curb the sale of counterfeit goods. The analysis provides an objective overview of the legal and operational challenges faced by e-retailers in protecting intellectual property rights. The post underscores the complexities in balancing consumer trust, brand protection, and regulatory compliance within the Indian e-commerce sector.
Overview
Indian e-commerce retailers have come under increasing legal and commercial pressure as counterfeit goods sold by third-party vendors on their platforms attract judicial scrutiny and brand-protection litigation. While the sector has grown substantially since its emergence in the early 2000s, a number of reputed platforms have faced injunction proceedings brought by brand owners alleging that vendors are trading in counterfeit merchandise.
Litigation Against ShopClues
In October 2014, the Delhi High Court prohibited Gurgaon-based online marketplace ShopClues from using, manufacturing, marketing, selling, displaying, or advertising the name of L’Oreal in connection with the sale of products on its platform. The cosmetic company had filed a civil suit alleging that a vendor named Brandworld was selling counterfeit products bearing its trademark on ShopClues. Other leading brands — Tommy Hilfiger, RayBan, and Skullcandy — filed similar proceedings against ShopClues, and the Delhi High Court granted provisional injunctions restraining the website from selling counterfeit merchandise of those brands. A spokesperson for ShopClues stated: “We believe that our ability to partner with brands to protect their intellectual property rights is far more than what is available to them in the offline retail world. And, most brands recognize that. Together, we have made great progress in addressing this issue.”
Incidents at Snapdeal and Industry Response
Snapdeal, another leading Indian e-commerce platform, was also found to have counterfeit listings on its website. A Delhi-based customer paid INR 9,445 for Nike Air Max shoes ordered from the platform and identified the product as fake after noticing that the misspelling “nikebetterwold.com” appeared on the shoes in place of “nikebetterworld.com”. A Snapdeal official stated: “Snapdeal recognizes sellers who have good sales track record and takes actions against the sellers who engage in selling fake products. In case of any violations, upon being adequately notified, Snapdeal takes down such listings in accordance with the rules and policies provided on Snapdeal.”
Several e-commerce platforms employ mystery shoppers to identify and remove counterfeit listings. Major players such as Amazon India and Flipkart have reported fewer such incidents, which they attribute to more rigorous seller background-verification checks.
Disclaimer
This article is for general information and does not constitute legal advice. Readers should consult a qualified attorney before acting on any matter discussed here.