"Online Prices Are Half Off When Bought in Bulk"... Trusted 'Official Sellers' Turned Out to Be Fake [Heotdari Economy]

(49) Parallel Imports Claimed but Fake Goods Sales Rampant

Editor's NoteMany people thought it was a smart economic activity to get something better, but it often turned out to be a misstep. When deceived by corporate marketing or blinded by momentary gains, wrong decisions ultimately harm consumers. We aim to examine economic activities where people have made mistakes by misjudging everyday subjects and ended up on the wrong track.

In e-commerce, many distributors advertise "parallel imports" and sell overseas brand products such as Starbucks tumblers, golf clubs, perfumes, and clothing at low prices. Since there are many cases of counterfeit goods disguised as "parallel imports," consumers should carefully check the seller information if the price seems excessively cheap.

Parallel import refers to a system allowed by the government in November 1995 to induce price reductions of imported manufactured goods, where a third party other than the official seller with exclusive sales rights imports goods and sells them domestically. It is a method where general merchants, not official importers, import products through outlets and distribute them.

For example, even if a U.S. brand A registers its trademark with the patent office and grants exclusive import rights and exclusive usage rights to company B for exports to Korea, company C, unrelated to B, can legally parallel import A brand products distributed in the U.S. and sell them in Korea. They are genuine products, differing only in official import and distribution structure. However, since various variables can arise during the distribution process of parallel imports, there is a large space for counterfeit goods to infiltrate.

Recently, a group was caught producing fake Starbucks tumblers, forks, spoons, etc., and distributing them massively in Korea by falsely claiming them as genuine parallel imports. These products were sold through online and offline channels at prices more than 50% cheaper than genuine products to government offices, companies, and private organizations as souvenirs or promotional items. They illegally imported ordinary products without import declaration, then repackaged them in boxes printed with Starbucks logos or marked trademarks with laser engraving machines to counterfeit them.

There have also been many cases where fake luxury perfumes, bags, watches, etc., made in China were disguised as genuine parallel imports and sold on domestic internet shopping malls. Parallel import products are difficult to receive after-sales service (AS) at official stores, and counterfeit sellers exploited this to prevent consumers from verifying the authenticity of products at official stores.

We inquired with a company selling Starbucks tumblers cheaply on e-commerce. The seller told the reporter, "I purchase tumblers at offline Starbucks stores in Korea and sell them." He said, "There is a separate channel to buy products cheaply," but was reluctant to explain how they could buy products cheaply at stores and resell them. He also said, "Starbucks has a structure where parallel imports are impossible," and "Companies selling under the banner of parallel imports are just playing word games."

E-commerce company selling Starbucks tumblers. E-commerce screen capture

Parallel import products sold online are cheaper but often difficult to get AS, exchanges, or refunds, and it is often hard to verify accurate seller information. Many sellers mix terms like "official seller" and "parallel import" in product descriptions, making it difficult for consumers to judge whether products are genuine or counterfeit. On the other hand, purchasing through official sales channels allows consumers to verify genuine certification marks and guarantees AS, exchanges, and refunds, even if the price is higher.

An e-commerce industry insider emphasized that since distribution processes differ for each shopping platform, consumers must carefully check seller information, and platform operators need to make efforts to self-regulate. He said, "E-commerce platforms with high direct purchase rates should verify product import information more thoroughly," and "Open markets that directly interact with consumers should transparently disclose information about sellers (distributors)."

Professor Heo Kyung-ok of the Department of Consumer Studies at Sungshin Women's University explained, "Since e-commerce does not list detailed information about product sellers, it is difficult for consumers to judge, and many people exploit this. Since individual entrepreneurs can also sell imported products, consumers should be aware that parallel imports carry a high risk of counterfeit goods."