Fake cosmetics ring using real L'Oreal byproducts busted

Nine fake L'Oreal cosmetics producers and traders who allegedly made counterfeits with the residue of real L'Oreal products have been charged with trademark infringement, prosecutors in the Pudong New Area said.

Most of the suspects were working in the cosmetics industry and familiar with the processes of production, packing and marketing. Among them was a L'Oreal staffer working at one of its factories where the residue was available.

According to the Pudong New Area People's Procuratorate, the staffer, surnamed Ma, was responsible for the management of essence used in making cosmetics. He collected the essence residue and handed it to the chief culprit, surnamed Wang. The residue was soon transferred to another member of the ring, surnamed Pang, who understands production technologies and made the material into half-finished products.

The products then started a second trip to Shandong Province, where they were completed by a man surnamed Zhang. The finished goods were transported back to Shanghai and packed in a warehouse Wang rented in Pudong. After the packing, they were distributed to other places around China for sale.

The counterfeit ring was discovered by police in June this year. More than 2 million yuan (US$302,252) worth of fake cosmetics was seized, mainly consisting of facial cleanser.