Takealot platform allegedly exploited to sell counterfeit goods

Unscrupulous merchants on Takealot’s marketplace have allegedly been exploiting the platform’s features to sell knock-offs and counterfeit goods under the banner of the genuine article, Carte Blanche reports.

In a segment that aired last Sunday, the investigative journalism programme showcased several examples ranging from first-aid equipment to protein powder.

A prominent case was the anti-choking instrument LifeVac, exclusively distributed in South Africa by specialist medical device importer Ventria.

LifeVac is a reputed, non-powered, non-invasive device that uses suction to force objects out of a patient’s airway.

Its reputation has become increasingly established as a life-saving device following several stories and dramatic footage showing the instrument in action.

Carte Blanche reported receiving a complaint from a shopper who said she clicked on Ventria’s LifeVac listing on Takealot but received a knock-off when her order arrived.

The customer said the product she received used noticeably inferior materials to the genuine LifeVac.

It didn’t come with the branding, packaging, or instructions she expected from the product listing. The knock-off did not feature the same labelling or CE mark as the real product.

Ventria director Nicolette Grace confirmed that they had seen several imitation products on Takealot that were copying the content of their listings.

Grace said they received regular complaints from customers who believed they ordered a LifeVac from Ventria, only to receive a cheap imitation.

Takealot has several imitation products being sold through its marketplace as anti-choking devices.

While the real LifeVac costs R1,799, the clones are priced between R625 and R999.

One way these copies get mistaken for the real deal is by Takealot sellers claiming they are parallel products.

Note that “parallel product” in this context does not refer to a parallel import but rather to an item that is in all respects the same as another one — it is simply being sold by a different merchant.

By claiming their clones are parallel products, unscrupulous merchants can share the same listing and “Buy Box” as the genuine product.

The Buy Box is a common user interface element on e-commerce websites, including Takealot. Its stated goal is to show customers the best offer for a listing.

That could be showcasing the seller with the best price, best delivery time, or both.

For parallel listings, sellers compete to “win the Buy Box” by offering the best prices and delivery times.

By exploiting the algorithm behind the Buy Box, sellers of imitations trick shoppers into ordering their products instead of the genuine article.

To illustrate how the Buy Box could be gamed, Carte Blanche showed a listing for a space blanket also sold by Ventria.

Even though the product listing was reached by clicking its link in Ventria’s seller profile, the company isn’t either of the ones featured in the Buy Box.

Furthermore, the listing uses the description and photos Ventria uploaded.

In this case, the Buy Box offers two options: the best price (R73) and the fastest delivery at the best price (R75, next-day delivery).

Although Ventria’s space blanket is also R75 with next-day delivery, shoppers must scroll down to the “Other Offers” box to find it.

MyBroadband was able to replicate this more than a week after Carte Blanche first reported the story. The following screenshot illustrates the issue.

Takealot reportedly told Carte Blanche that the LifeVac lookalikes are not fake or counterfeit, but instead are a competing offer under a different brand name.

Grace disputed this characterisation.

“When the consumer goes onto the Buy Box on Takealot, they’ll actually think they’re purchasing a LifeVac,” Grace said.

At the time of publication, LifeVac’s listing on Takealot had no parallel products competing for its Buy Box and is exclusive to Ventria.

Another example from Carte Blanche’s report was Rapid Lash, a product exclusively imported by Blue Sky Distribution in South Africa that may only be sold by licensed professionals.

Blue Sky CEO Wayne La Grange said the product was not for sale through Takealot, yet they regularly found counterfeits on the platform.

Rapid Lash headquarters in California reportedly tested one of the knock-offs La Grange bought from Takealot and confirmed it was a fake.

La Grange said he laid criminal charges against Takealot. However, Takealot said it had not heard anything from the police regarding the charges.

Takealot told Carte Blanche that it has a strict zero-tolerance policy towards counterfeit goods.

It said that on the rare occasion that they are sold, they terminate the seller’s account, refund the buyer, recall the product, and take legal action.

MyBroadband asked Takealot for comment, but it did not respond by publication.