{"id":554166,"date":"2024-08-07T19:02:12","date_gmt":"2024-08-07T17:02:12","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=554166"},"modified":"2024-08-07T19:03:25","modified_gmt":"2024-08-07T17:03:25","slug":"takealot-and-amazons-big-fakes-problem","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/internet\/554166-takealot-and-amazons-big-fakes-problem.html","title":{"rendered":"Takealot and Amazon&#8217;s big fakes problem"},"content":{"rendered":"\n<p>Online marketplaces like Takealot and Amazon are dealing with a significant problem of knock-offs and counterfeit products being sold on their platforms as genuine.<\/p>\n\n\n\n<p>Unscrupulous merchants exploit the marketplaces&#8217; features to sell knock-offs and counterfeit goods under the same listings as authentic products.<\/p>\n\n\n\n<p>Investigative journalism programme Carte Blanche first highlighted the issues Takealot faced in a June report that showcased several examples ranging from first-aid equipment to protein powder.<\/p>\n\n\n\n<p>One key element of the issue is how online marketplaces handle product listings and present the best offers to customers.<\/p>\n\n\n\n<p>Marketplaces like Takealot and Amazon generally allow third-party merchants to advertise competing offers for products under one listing.<\/p>\n\n\n\n<p>This avoids having dozens of identical listings for the same product offered by multiple sellers, leading to &#8220;analysis paralysis&#8221; that could cause shoppers not to buy something simply because there are too many options.<\/p>\n\n\n\n<p>To further streamline the user interface, marketplaces have a &#8220;buy box&#8221; \u2014\u00a0the place on the screen with the &#8220;add to cart&#8221; or &#8220;buy&#8221; buttons where the best offer is showcased.<\/p>\n\n\n\n<p>The best offer is generally calculated based on a combination of the lowest price and fastest delivery time.<\/p>\n\n\n\n<p>In Takealot&#8217;s case, the Competition Commission has stipulated that it must show separate options for the cheapest and fastest offers, if they differ.<\/p>\n\n\n\n<p>This system has led to the emergence of buy box sniping, where competing sellers undercut one another by a minuscule amount to &#8220;win the buy box&#8221;.<\/p>\n\n\n\n<p>Dodgy sellers use this same technique to peddle their knock-offs and counterfeit goods on these platforms.<\/p>\n\n\n\n<p>While well-informed buyers might know to carefully scrutinise who the seller is on a listing before making a purchase, many don&#8217;t know what to look for.<\/p>\n\n\n\n<p>Shoppers can also inadvertently be misled by the streamlined flow these online marketplaces worked so hard to achieve.<\/p>\n\n\n\n<p>&#8220;One of the most complex issues to solve for any online marketplace platform is to prevent sellers linking the incorrect products to an existing product listing,&#8221; a Takealot spokesperson told MyBroadband.<\/p>\n\n\n\n<p>&#8220;The natural consequence of not getting this right is that customers receive products they have not ordered, which they then need to return. It could also be detrimental to the competing sellers on that product listing.&#8221;<\/p>\n\n\n\n<p>Three different incidents of this in South Africa have illustrated the various impacts the issue can have, with two cases involving American brands.<\/p>\n\n\n\n<p><a href=\"https:\/\/mybroadband.co.za\/news\/internet\/552819-takealot-platform-allegedly-exploited-to-sell-counterfeit-goods.html\">One prominent case<\/a> was the anti-choking instrument LifeVac, exclusively distributed in South Africa by specialist medical device importer Ventria.<\/p>\n\n\n\n<p>LifeVac is a reputed, non-powered, non-invasive device that uses suction to force objects out of a patient&#8217;s airway.<\/p>\n\n\n\n<p>Its reputation has become increasingly established as a life-saving device following several stories and&nbsp;<a href=\"https:\/\/www.youtube.com\/watch?v=KdL03ZJnitA\" target=\"_blank\" rel=\"noreferrer noopener\">dramatic footage<\/a>&nbsp;showing the instrument in action.<\/p>\n\n\n\n<p>Carte Blanche reported receiving a complaint from a shopper who said she clicked on Ventria&#8217;s LifeVac listing on Takealot but received a knock-off when her order arrived.<\/p>\n\n\n\n<p>The customer said the product she received used noticeably inferior materials to the genuine LifeVac.<\/p>\n\n\n\n<p>It didn&#8217;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.<\/p>\n\n\n\n<p>Ventria director Blake Grace told MyBroadband that fake devices have been linked to their Takealot product listing on a few occasions, allowing knock-offs to share the buy box with LifeVac.<\/p>\n\n\n\n<p>Grace said another problem was that the South African Health Products Regulatory Authority (SAHPRA) has declined to regulate these types of products. He has urged the regulator to reconsider.<\/p>\n\n\n\n<p>&#8220;There have been global bans and recalls due to the fake devices failing, and lack of efficacy,&#8221; he said.<\/p>\n\n\n\n<p>&#8220;SAHPRA says they can&#8217;t regulate them because they are class 1 devices.&#8221;<\/p>\n\n\n\n<p>He said that although these are low-risk products, the impact if they fail is high.<\/p>\n\n\n\n<p>&#8220;This is why other regulatory bodies are taking action. The consequence of one of these fake devices failing is possible death.&#8221;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"675\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/07\/LifeVac-product-contents.jpg\" alt=\"\" class=\"wp-image-552822\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/07\/LifeVac-product-contents.jpg 1200w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/07\/LifeVac-product-contents-600x338.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/07\/LifeVac-product-contents-800x450.jpg 800w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/07\/LifeVac-product-contents-768x432.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/figure>\n\n\n\n<p>Another American brand facing a problem with knock-offs is eyelash hair loss product RapidLash.<\/p>\n\n\n\n<p>However, in its case, the product has never been officially available on Takealot and the items sold on the platform were allegedly outright counterfeits. They used the RapidLash name, but were not actually made by RapidLash.<\/p>\n\n\n\n<p>RapidLash&#8217;s local importer, Blue Sky Distribution, warned Takealot that <a href=\"https:\/\/mybroadband.co.za\/news\/internet\/553955-takealot-threatened-with-criminal-charges.html\">it would seek criminal prosecution<\/a> against the platform for allegedly allowing counterfeits.<\/p>\n\n\n\n<p>Commenting on the threat, Takealot was unfazed.<\/p>\n\n\n\n<p>&#8220;The complainant has repeatedly threatened legal action for a period of two years,&#8221; Takealot said.<\/p>\n\n\n\n<p>&#8220;We can confirm, however, that Takealot has never received any communication from SAPS or any authorised inspector informing Takealot that a criminal charge has been laid for dealing in counterfeit products.&#8221;<\/p>\n\n\n\n<p>Takealot also said that when Blue Sky raised the issues, it disclosed the seller&#8217;s details and undertook to cooperate with any future investigations.<\/p>\n\n\n\n<p>Blue Sky&#8217;s version of events was somewhat different. It said Takealot stonewalled them until the issue became public, and only now has it said it wants to cooperate.<\/p>\n\n\n\n<p>As for counterfeit goods in general, Takealot said it takes the issue incredibly seriously.<\/p>\n\n\n\n<p>Takealot said it has vetting and screening processes for sellers to prevent this from happening.<\/p>\n\n\n\n<p>&#8220;However, on the rare occasion this happens, customers are able to return the product and will receive a full refund,&#8221; the company said.<\/p>\n\n\n\n<p>&#8220;Where counterfeit goods have been uncovered through our investigations that are not even apparent to our customers, we have proactively recalled those products and instituted legal proceedings against the individuals responsible.&#8221;<\/p>\n\n\n\n<p>Takealot said it had delisted over 100 seller accounts in the past year due to confirmed counterfeit claims.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"252\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/08\/Dear-Deer-hair-scrunchy-listing-with-Keanu-Land-winning-the-Buy-Box-800x252.jpg\" alt=\"\" class=\"wp-image-553343\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/08\/Dear-Deer-hair-scrunchy-listing-with-Keanu-Land-winning-the-Buy-Box-800x252.jpg 800w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/08\/Dear-Deer-hair-scrunchy-listing-with-Keanu-Land-winning-the-Buy-Box-600x189.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/08\/Dear-Deer-hair-scrunchy-listing-with-Keanu-Land-winning-the-Buy-Box-768x242.jpg 768w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/08\/Dear-Deer-hair-scrunchy-listing-with-Keanu-Land-winning-the-Buy-Box.jpg 1221w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><figcaption class=\"wp-element-caption\">Dear Deer product listing with unknown seller &#8220;Keanu Land&#8221; winning the Buy Box<\/figcaption><\/figure>\n\n\n\n<p>The issue of knock-offs exploiting Takealot&#8217;s buy box also hurts small businesses like Dear Deer, a local satin goods producer.<\/p>\n\n\n\n<p>Dear Deer told MyBroadband that they&#8217;ve had mass-produced cheap imports <a href=\"https:\/\/mybroadband.co.za\/news\/internet\/553224-secret-war-on-takealot.html\">hijack their listings<\/a> on several occasions.<\/p>\n\n\n\n<p>Customers then leave bad reviews, complaining that the product they received was not what was advertised. The reviews are attached to the entire listing, not a specific seller.<\/p>\n\n\n\n<p>Takealot said its Takealot Brand Programme aims to help merchants who sell branded products with registered CIPC trademarks.<\/p>\n\n\n\n<p>&#8220;Sellers who join this programme are protected as it prevents products that are not legitimately sourced from being listed or sold on their listing and stops other sellers from using trademarked names,&#8221; Takealot said.<\/p>\n\n\n\n<p>&#8220;The marketplace team is working hard to get more sellers to join this program. We currently have 386 brands who are part of the program.&#8221;<\/p>\n\n\n\n<p>Dear Deer said it had asked Takealot to protect their listings and supplied their trademark certificate.<\/p>\n\n\n\n<p>However, the trademark Dear Deer obtained in 2020 was for textiles and textile goods, including tablecloths, bedding and other linen, blankets, pillows, and pillow slips.<\/p>\n\n\n\n<p>They said Takealot asked for a separate hair accessories trademark for the scrunchies they make.<\/p>\n\n\n\n<p>Unfortunately, trademarking is cumbersome and often takes a year or more.<\/p>\n\n\n\n<p>Between the Buy Box sniping and knock-off products sullying her good name, Dear Deer&#8217;s founder said she has been left demoralised.<\/p>\n\n\n\n<p>She said the only reason she keeps Dear Deer alive is because people have come to depend on her for a salary. Her own income comes from a different job.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"800\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/05\/Amazon-packages.jpg\" alt=\"\" class=\"wp-image-536051\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/05\/Amazon-packages.jpg 1200w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/05\/Amazon-packages-600x400.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/05\/Amazon-packages-800x533.jpg 800w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/05\/Amazon-packages-768x512.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/figure>\n\n\n\n<p>The issue of knock-offs and counterfeits trying to abuse online marketplaces is not unique to Takealot.<\/p>\n\n\n\n<p>Amazon is facing similar issues globally, with <a href=\"https:\/\/www.businessinsider.com\/how-to-avoid-buying-fake-item-amazon-2024-6\" target=\"_blank\" rel=\"noreferrer noopener\">Business Insider<\/a> recently highlighting a specific case involving a counterfeit JanSport backpack.<\/p>\n\n\n\n<p>According to the report, one of the straps of the backpack tore off within a few months of purchase.<\/p>\n\n\n\n<p>JanSport offers a limited lifetime warranty on its products, but when the defective product was sent in for a replacement, the company replied that it was a counterfeit.<\/p>\n\n\n\n<p>The customer contacted the third-party seller on Amazon, who processed an immediate refund and told them not to bother returning the broken backpack.<\/p>\n\n\n\n<p>Much like Takealot, Amazon professes a zero-tolerance policy on counterfeit goods. Sellers found trafficking fakes risk getting their accounts suspended and criminal prosecution.<\/p>\n\n\n\n<p>Amazon has <a href=\"https:\/\/www.aboutamazon.com\/news\/policy-news-views\/amazon-brand-protection-report-2023-counterfeit-products\" target=\"_blank\" rel=\"noreferrer noopener\">reported<\/a> that it invested more than $1.2 billion (R22 billion) and employed more than 15,000 people dedicated to protecting customers, brands, selling partners, and its store from counterfeit, fraud, and other forms of abuse.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Online marketplaces around the world, including South Africa&#8217;s Takealot, are dealing with a huge problem of knock-off and counterfeit products being sold on their platforms.<\/p>\n","protected":false},"author":15,"featured_media":511716,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[18],"tags":[723,96572,96434,96487,96573,96432,96534,995,96436],"class_list":["post-554166","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-internet","tag-amazon","tag-blake-grace","tag-blue-sky-distribution","tag-dear-deer","tag-jansport","tag-lifevac","tag-rapidlash","tag-takealot","tag-ventria"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/554166"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=554166"}],"version-history":[{"count":6,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/554166\/revisions"}],"predecessor-version":[{"id":554421,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/554166\/revisions\/554421"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/511716"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=554166"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=554166"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=554166"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}