Online Counterfeiting FAQs

What is online counterfeiting?

Online counterfeiting is the manufacture and sale of fake or unauthorized copies of branded products through internet platforms such as Amazon, eBay, Alibaba, Walmart Marketplace, and social media. Counterfeit sellers use your brand name, product images, trademarks, and packaging to deceive consumers into believing they are purchasing a genuine product, while delivering a cheap, often unsafe knockoff.

How do I know if my product is being counterfeited online?

There are several warning signs that your brand is being targeted by counterfeiters on online marketplaces:

  • You see other sellers listing your product at prices far below your own
  • Your brand name, product images, or marketing copy is appearing on listings you did not create
  • Customers report receiving a product that looks different, feels cheaper, or doesn’t work like yours
  • You receive complaints or negative reviews about products you never shipped
  • Your sales volume suddenly drops without any other explanation

Is online counterfeiting a crime?

Yes. Counterfeiting is a federal crime in the United States under the Trademark Counterfeiting Act and the Lanham Act, and may also violate patent and copyright law. Criminal penalties can include substantial fines and imprisonment.

What Is the Financial Impact of Counterfeiting on My Business?

Counterfeiting can harm your business in more ways than just lost sales. When fake products enter the market, they often sell at lower prices, pulling customers away from your legitimate products and cutting into your revenue.

Counterfeits can also damage your brand’s reputation. If customers receive a low-quality or defective fake product but believe it came from your company, it can lead to negative reviews, complaints, and lost trust. Many brand owners also spend time and money responding to customer service issues, returns, and confusion over products they never actually sold.

In some cases, counterfeit products can even create legal risk if a dangerous or defective fake causes harm but is associated with your brand.

What types of IP rights protect my product from counterfeiters?

Your product may be protected by several overlapping forms of intellectual property, and understanding which ones apply determines the enforcement strategy:

  • Trademark — protects your brand name, logo, and product packaging. Counterfeiting is a specific form of trademark infringement involving unauthorized use of an identical or nearly identical mark
  • Patent — protects the invention itself (utility patent) or its ornamental appearance (design patent). If a counterfeiter copies how your product works or looks, patent infringement may apply
  • Copyright — protects original creative content including product photos, packaging graphics, marketing copy, instructional manuals, and software