Huge rise in counterfeiting cases

Changning District People's Court accepted 374 disputes from “professional individuals” related to online counterfeiting over the past three years and handled 330 with the amount involved exceeding 10 million yuan (US$1.4 million).

With the rapid growth of e-commerce, customers are doing more shopping online, causing problems related to fake products. Consumers are being encouraged to file complaints against counterfeiters and some people make a living this way. They are called professional "dajiaren," literally “people who fight against the fake.”

According to the court, there were 238 disputes accepted by local courts in 2019, compared with just 14 in 2017.

Nearly half the complaints were about food. And more than 70 percent involved Shanghai-based online discounter Pinduoduo.

Among the cases handled, there were 134 related to imports. Nearly 25 percent of these goods were from Thailand, 22 percent from Japan and 10 percent from the US, with the rest from other overseas countries and regions.

The court found that in recent years, more and more dajiaren had formed groups, such as those with family members and friends, and a few had used illegal methods to make money from online platforms. Some fabricated stories about counterfeit products while some tried to extort money from stores.

Online stores were working together to battle the problem. In the past, many stores were reluctant to challenge these people and sometimes eluded or delayed any confrontation. Now, stores are becoming more active in their response. 

The e-commerce platforms' management of goods provided on their sites was also a problem, the court said.

The court has issued guidance cards to representatives of online platforms.