Counterfeiting is a multi-billion-dollar enterprise that puts consumers at serious risk. Poorly-made laptop batteries can overheat. Knock-off cosmetics may contain toxic chemicals. Counterfeit toys might contain lead or be a choking hazard. Online pharmacies may sell unregulated medicines that are at best ineffective or, at worst, harmful. And just recently, news outlets warned parents to be on the lookout for candy containing harmful and dangerous substances around Halloween.
During the busy holiday shopping period, consumers in a rush for last-minute gifts or lured by the promise of deep discounts are especially vulnerable to fakes. However, it’s important to note that counterfeits are an ongoing, year-round issue.
So why does this matter? Counterfeits are a consumer-safety and health risk. They also pose significant economic harms. According to the U.S. Chamber of Commerce, counterfeits cost the global economy more than $500 billion each year and hundreds of thousands of jobs. Those lost revenues translate into fewer resources for developing the inventions of tomorrow.
Counterfeiting also corrodes the incentives that drive American competitiveness and innovation. Every counterfeit sale is revenue stolen from the manufacturer or inventor who invested time and capital to develop and produce the original product. The result is a marketplace that rewards imitation over invention and leaves honest businesses at a disadvantage.
E-commerce sites make it particularly challenging for consumers to spot counterfeits. According to one study, nearly seven out of every 10 people have purchased counterfeit products online at least once in the past year.
When shopping online this holiday season, there are several ways consumers can double-check if something is legitimate. As C4IP Executive Director Frank Cullen explained in an interview, “if a deal sounds too good to be true, it probably is.” He recommends that consumers verify the legitimacy of the sites they use by checking for typos and double-checking the URL. Purchasing directly from the manufacturer rather than through a second- or third-party seller can also be helpful.
This summer, the Senate unanimously passed a resolution recognizing July as National Anti-Counterfeiting and Consumer Education and Awareness Month. The resolution highlights the growing bipartisan concern over the negative impact counterfeits have on consumers, inventors, and the innovation ecosystem.
But in addition to raising awareness of this issue, we need to pass legislation like the SHOP SAFE Act, which would incentivize online marketplaces to adopt best practices for monitoring counterfeit goods on their platforms. The bill requires that e-commerce platforms take “reasonable measures” to suppress fake products in order to avoid liability, including removing repeat offenders, proactively screening for suspected counterfeits, or removing counterfeit listings when detected.
Learn more about SHOP SAFE: https://c4ip.org/tag/shop-safe/
For more information on how to avoid purchasing counterfeits when shopping online: https://www.cnbc.com/2025/09/19/avoid-buying-fake-products-online-marketplaces.html