Consumer Group Warns of 'Full-Blown Crisis' in Online Counterfeit Trade, Demands Urgent Action

A consumer advocacy group in the Philippines, Malayang Konsyumer, has raised an alarm over the rampant proliferation of counterfeit products on major e-commerce platforms, labeling it a "full-blown consumer protection crisis." The group is calling for consistent and decisive enforcement of existing laws and online marketplace regulations, highlighting the severe risks fake products pose to consumers. "We strongly condemn the continued proliferation of counterfeit, unsafe, and illegally sold products on major e-commerce platforms, including Shopee, Lazada and TikTok Shop. This is no longer a small enforcement problem. It is a full-blown consumer protection crisis," the group stated in a release. Mark Jansen Magsano, convenor of Malayang Konsyumer, added, "Every fake product sold online represents a Filipino consumer deceived, a legitimate business undermined, a lawful brand violated, and a household potentially exposed to unsafe, substandard, or unregulated goods." While e-commerce platforms regularly take down shops selling counterfeit products, Magsano noted that the high numbers do not indicate success but rather point to a systemic failure. Lazada reported an 85.5% proactive takedown rate between June 2024 and May 2025, while Shopee recorded 93.6% during the same period. TikTok Shop stated it had blocked over 70 million counterfeit or unsafe products globally and rejected 1.4 million seller registrations in the first half of 2025 alone. Meanwhile, the National Committee on Intellectual Property Rights seized P18.64 billion worth of counterfeit goods from January to September 2025 through border operations by the Bureau of Customs. "These figures should not be celebrated," Magsano said. "They are proof that counterfeit products are entering these platforms at an industrial scale, placing millions of fake and dangerous goods within reach of ordinary Filipinos every single day." The negative effects of counterfeit products extend far beyond simple trademark infringement. Malayang Konsyumer warned that fake goods, from pharmaceuticals and cosmetics to children's toys and household adhesives, pose severe risks to the public. These include exposure to toxic chemicals in cosmetics, ineffective or harmful ingredients in medicines, and fire or structural hazards from substandard electronics and industrial adhesives. The large-scale sale of counterfeit goods also undermines legitimate businesses, leading to job losses and the decline of the local industry. It also threatens the integrity of the digital economy, making everyday online transactions a gamble for the average Filipino household. "These are not harmless bargains. Fake products can injure consumers, damage property, expose families to unsafe chemicals, deprive government of revenue, destroy legitimate jobs, and erode public trust in online commerce," Magsano said. The group urged government agencies, including the Department of Trade and Industry’s E-Commerce Bureau, the Intellectual Property Office, the Food and Drug Administration, and the Bureau of Customs to strictly enforce Republic Act No. 11967, or the Internet Transactions Act of 2023, to crack down on online counterfeit trade. "These agencies must use the full force of their respective mandates to investigate counterfeit listings, issue takedown orders, pursue repeat violators, enforce intellectual property and product safety laws, strengthen border controls, and protect consumers from fake, unsafe, mislabeled, and non-compliant goods. The law already provides the tools. What is needed now is decisive enforcement," said Magsano. Malayang Konsyumer also asserted that e-commerce platforms must stop treating counterfeit listings as an "inevitable cost of doing business." "Platforms have the data, payment channels, and algorithmic controls to stop this. They cannot profit from online transactions while avoiding responsibility for the products sold within their digital walls," Magsano said. (Contributed story)