Chanel Perfume Sold for 160,000 Won at Department Store... Shopping Mall Offers 'Half Price' [Heotdari Economy]

④Counterfeit products bought at low prices
Still rampant despite relief measures by brokerage platforms
Earrings contaminated with heavy metals may harm health
"Strengthen platform responsibility... Consumers should also consider prices"

Editor's NoteMany people thought they were engaging in smart economic activities to get better deals, but it often turned out to be a misstep. When consumers are deceived by corporate marketing or blinded by momentary gains and make wrong decisions, the ones who ultimately suffer are the consumers. We aim to examine economic activities where people have made mistakes by misjudging everyday objects and situations.

Who would refuse to buy the same product at half price? One of the biggest concerns for consumers when purchasing goods is undoubtedly the 'price.' However, if you decide to buy easily just because the price is low, you are likely to fall into the trap of counterfeit products.

◆ Luxury Perfume Bought at Half Price Turns Out to Be Fake… Cases of Heavy Metal Detection

A 'counterfeit warning' has been issued in the e-commerce market. Domestic e-commerce platforms such as Coupang, Naver Shopping, 11st, Auction, as well as foreign platforms like AliExpress and Temu that have entered the Korean market, are struggling with the sale of counterfeit products.

The biggest reason many consumers fall into the counterfeit trap is 'price competitiveness.' Counterfeit products are generally cheaper than genuine ones, making them attractive to consumers. Especially when sold under labels like parallel imports or group purchases, consumers tend to believe the price is low due to reduced distribution costs.

According to a report on 'Counterfeit Product Detection Status by Online Platform over the Past 5 Years' released by Rep. Jeong Il-young of the Democratic Party last October, a 'Bleu de Chanel Eau de Parfum 100ml' sold for 75,000 KRW on Naver Smart Store was found to be counterfeit. The product is officially priced at 159,000 KRW on Chanel's official website.

Counterfeit 'Bleu de Chanel Eau de Parfum' sold on Naver Smart Store. Analysis revealed foreign substances detected. [Image provided by Jeong Il-young, Office of the Democratic Party of Korea]

Many consumers trust the reputation of major e-commerce platforms when making transactions. This trust is based on the expectation that filtering policies to detect counterfeit products are in place. Over the past five years, 297,200 counterfeit cases were detected on the Naver platform. The breakdown of counterfeit detections by category is ▲Blogs 138,532 cases ▲Cafes 133,442 cases ▲Bands 14,926 cases ▲Smart Store 10,300 cases. Instagram ranked second after Naver with 293,554 counterfeit detections. This raises concerns that consumers who trust popular and well-known influencers may end up purchasing counterfeit goods. Coupang has also faced counterfeit controversies involving luxury watches and sneakers produced in collaboration with famous celebrities sold through its platform.

More serious than financial damage is the fact that counterfeit products can adversely affect health. Illegal manufacturing of counterfeit goods often involves the use of harmful materials or lack of safety inspections. Especially for accessories like earrings that come into direct contact with the skin, detection of harmful substances exceeding safety standards poses significant risks to buyers.

According to the 'Intellectual Property Rights Intensive Crackdown Results' announced by the Korea Customs Service this month, 142,930 intellectual property rights-infringing imported items were seized in November last year. Analysis revealed lead and cadmium levels ranging from at least twice to as much as 930 times the safety standards. Among 24 counterfeit earring products of overseas luxury brands such as Louis Vuitton, Dior, and Chanel, cadmium was detected in 20 products (83%), and 3 of these also exceeded lead safety limits. Lead, known as a carcinogen, can cause diseases in the renal, central nervous, digestive, and reproductive systems upon poisoning, while cadmium can cause respiratory, renal, and digestive diseases upon poisoning.

On the morning of the 23rd, an employee at Seoul Customs in Gangnam-gu, Seoul, is holding up an earring in which lead and cadmium were detected among intellectual property rights infringement items. The Korea Customs Service announced that as a result of a focused crackdown on counterfeit goods in November, 142,930 counterfeit items were seized, and among them, chemical analysis was conducted on products that come into direct contact with the skin. Heavy metals such as lead and cadmium exceeding the standard limits were detected in 25 products. [Image source=Yonhap News]

◆ Platform Industry Strives for Self-Help Measures but Counterfeits Persist… "Legal Responsibility of Platforms Must Be Strengthened"

The industry has also launched a war against counterfeit products. If platforms gain a reputation as a 'counterfeit paradise,' consumer trust could plummet. Coupang has formed a dedicated team to support preemptive blocking of counterfeit products through legal reviews and monitoring. SSG.com operates an AI-based solution and offers a luxury digital warranty service called 'SSG Guarantee' for luxury goods. Gmarket has its own counterfeit filtering system. AliExpress promises to eradicate counterfeit products by offering 100% refunds even if items are only suspected to be counterfeit.

To eradicate the root of counterfeit product distribution, there are calls to strengthen the legal responsibilities of platforms. Laws such as the 'Act on Consumer Protection in Electronic Commerce' that impose obligations to provide identity information to consumers requesting intermediary sales have been proposed but have not passed the National Assembly. Professor Lee Young-ae of Incheon National University's Department of Consumer Studies pointed out, "Consumers think they are buying from Naver, not from the sellers on the platform. Even if they know the platform is just an intermediary mall, it is difficult for consumers to clearly distinguish the difference, so major platforms like Naver must maintain strong preemptive processes and filtering procedures to block counterfeit products."

She also criticized major platforms for still being passive about counterfeit filtering policies. Professor Lee explained, "There should be compensation and regulatory measures when counterfeit products are discovered after the fact. Platforms want to list competitively priced products, but since genuine products are more expensive, platforms might consider it more profitable if they can deceive consumers with A-grade counterfeit products."

She emphasized that consumers should also be suspicious of prices that are excessively lower than genuine products. Professor Lee urged, "If the price is cheap, you should be aware that there is some risk involved. If you want genuine products while looking for the lowest price, there will inevitably be some loopholes. You should be cautious and avoid transactions if the price is excessively low or suspicious."