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Online Marketplaces Flooded with Counterfeit Goods

The proliferation of counterfeit goods on online marketplaces in Russia has become a significant concern for both consumers and legitimate businesses. A recent investigation reveals the ease with which fake products, ranging from sneakers to perfumes, are being sold on popular platforms like Ozon and Wildberries, often at prices significantly lower than authentic items.

The co-owner of a major electronics chain, DNS, Dmitry Alekseev, highlighted the issue by purchasing what he believed were ASICS sneakers at a drastically reduced price, only to discover they were counterfeit. He found that the seller’s Taxpayer Identification Number was invalid and that the marketplace initially marked the product as “Original” before removing the designation after Alekseev publicized his purchase.

The problem extends beyond sneakers, with counterfeit perfumes and cosmetics also readily available. For example, a popular hair mask could be found on Ozon at prices varying wildly, with sellers claiming authenticity despite the low cost. Similarly, sunscreen sold at a fraction of the price of retail stores was traced back to a seller in Moscow sourcing goods from China.

Marketplaces claim to be actively combating counterfeiting through various measures. Wildberries highlights its participation in an experiment with Rosaccreditation to verify product safety and the use of a “Digital Arbitration” service to address copyright infringements. Yandex Market emphasizes its multi-stage protection system, including automatic systems to detect suspicious products and sellers, as well as cooperation with the “Honest Sign” marking system. Ozon points to its manual and machine learning-assisted checks, preliminary originality checks for popular brands, and the “Brand Cabinet” tool for copyright holders to control their brand’s authenticity on the platform.

Despite these efforts, the counterfeit market in Russia is estimated at 5 trillion rubles annually, and marketplaces are accused of exploiting legal loopholes to avoid responsibility. The situation has worsened since the departure of Western brands in 2022, with self-employed individuals and sole proprietors importing goods and evading taxes.

A proposed law “On Marketplaces,” aimed at addressing these issues, has faced delays and revisions. The law seeks to hold marketplaces accountable for the activities of their sellers and impose fines for violations. However, the exact date of its adoption and implementation remains uncertain.