Four million counterfeit listings removed; 45,000 websites and social media accounts disabled; 4.1 million counterfeit products seized, all this in 2020 alone. These are the eye-watering numbers which make up the challenge Gucci, and countless other luxury brands face when dealing with counterfeiting.
Social media platforms have traditionally played unintended hosts to a proliferation of infringers. The use of multiple accounts drew brand-owners into a seemingly unending cycle of securing the removal of one infringing account for another to immediately pop up selling the same counterfeit products. This issue was compounded by the rise of social media platforms branching into e-commerce marketplaces with platforms such as Facebook Marketplace and Instagram Shop enabling infringers to both promote and list counterfeits through social media.
Encouraging signs of pro-active support for brand-owners are appearing from social media companies, as well as e-commerce platforms more generally. Amazon have filed several joint lawsuits alongside luxury brands, including high-end fashion houses Valentino and Ferragamo, and recently the well-known technology brand GoPro. Facebook have also adopted this approach and filed a joint lawsuit with Gucci, in the US District Court for the District of California.
Gucci and Facebook contend that the accused individual, Natalia Kokhtenko, used Facebook and Instagram to promote her websites, which sold products including fake Gucci-branded handbags, shoes, clothing and accessories. These actions were in direct contravention of Facebook and Instagram’s policies and terms of use. Despite the social media platform disabling Ms Kokhtenko’s accounts and removing infringing posts, she continued to promote the sale of counterfeit Gucci goods. Several of Gucci’s registered marks were involved, including its house mark ‘Gucci’, Gucci’s “signature webbing” (with its green/red/green colour combination) and a number of Gucci’s stylized and GG registrations.
By partnering with Facebook, Gucci’s aim is to “deter the repeated counterfeiting of the defendant, who is running a sophisticated counterfeiting scheme to sell replica Gucci goods at high price points for counterfeits”.
Given brands have experienced issues with social media for many years, why have these collaborations started to become more widespread? A potential explanation is the expansion into “social commerce” by these social media platforms. With the increase in social media usage and online shopping, there is an opportunity for companies such as Facebook to provide a compelling “social” sales platform for luxury goods. In order to do this, their platforms need to demonstrate a commitment to providing authentic goods and actively combatting counterfeits which divert luxury brand sales and damage their reputation. This also applies to resellers such as Amazon, who in order to position themselves as a reseller of more luxury items need to show that counterfeits will not be tolerated.
The decisive action from these platforms and social media companies and their well-publicised commitment to taking a strong stance on counterfeits is certainly positive news for brands. Instead of providing a home to infringers, collaboration between platforms and brands could be an effective weapon against counterfeits. Many brands will want to see this as the start of a major shift, rather than a few high-profile examples. Gucci is an effective flagship for Facebook’s legal action against counterfeits due to their brand recognition and the brand’s popularity amongst counterfeiters. A recent study reviewing various hashtags ranked Gucci as the most counterfeited luxury brand on TikTok. Clearly, counterfeiting remains a huge problem, and brands will be watching to see how widespread this pro-active approach to tackling counterfeits will become. Brands may also hope that, as well as taking action after the event, social media companies will prevent the original infringing activity taking place, perhaps through more authentication processes prior to listing.
Smaller brands and boutiques which flourish through their exclusivity will also be watching to see if the support Facebook and Amazon have given Gucci, Valentino, and Ferragamo will not be the preserve of big name brands only. Amazon have provided welcome comments in this regard, stating publicly that through their Counterfeit Crimes Unit, they are “working closely with luxury and cosmetics brands, small businesses, and brands with global name recognition”, and they “will continue to fight to protect intellectual property from small family-owned businesses through Fortune 500 companies”.
IP owners will be keeping a close eye on developments in this space; they may be hoping that counterfeiters are doing the same.
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