- 14-Sep-2025
- Elder & Estate Planning law
The rise of e-commerce has significantly expanded the reach of businesses and products, but it has also led to an increase in the sale of counterfeit goods. Counterfeit products—ranging from luxury items, electronics, and clothing to pharmaceuticals—pose serious risks to consumers. These goods often compromise safety, quality, and authenticity. In response, laws have been enacted to ensure that e-commerce platforms play an active role in preventing the sale of counterfeit goods. The key question is: Can e-commerce platforms be held liable for the sale of counterfeit goods by third-party sellers, and if so, what are their responsibilities?
The Consumer Protection Act, 2019 provides the legal framework for protecting consumers against unfair trade practices, including the sale of counterfeit goods. Under this Act, consumers have the right to quality goods and the right to seek redressal if they receive counterfeit or defective products.
Under Indian Intellectual Property laws, the sale of counterfeit goods violates trademarks, patents, and other intellectual property protections. E-commerce platforms can be held accountable if they are found to be facilitating the sale of such goods by their sellers.
E-commerce platforms that act as intermediaries (like Amazon, Flipkart, etc.) are not directly liable for counterfeit goods unless they actively participate in the sale or knowingly allow the sale of counterfeit products. However, they are expected to have due diligence and monitor the listings to prevent the sale of counterfeit goods.
E-commerce platforms are generally held liable if they ignore repeated complaints or fail to take action after being notified about counterfeit products being sold on their platform. For instance, if a platform allows counterfeit products to be listed despite knowing about the infringement, they may be seen as facilitating the sale, thus making them legally responsible.
According to the Consumer Protection (E-Commerce) Rules, 2020, e-commerce platforms must ensure that the goods being sold are genuine and authentic. Platforms are required to take appropriate action, such as removing counterfeit listings and suspending or banning sellers who repeatedly sell fake goods.
Platforms must verify the identity and authenticity of third-party sellers to ensure that they are not selling counterfeit goods. This includes requesting necessary documentation, like manufacturer certificates or trademark registrations, to prove the legitimacy of their products.
E-commerce platforms must provide mechanisms for consumers to verify the authenticity of products. This includes displaying product details, allowing customer reviews, and offering clear return and refund policies if counterfeit products are found.
Under the Consumer Protection Act, 2019, if consumers receive counterfeit goods, they have the right to seek a refund or replacement. E-commerce platforms are required to honor these requests under the law and can face penalties if they fail to do so.
Consumers can file complaints with platforms if they receive counterfeit goods, and the platform is obligated to address these complaints promptly. If the platform fails to resolve the issue, consumers can escalate the matter to Consumer Forums or regulatory bodies like the National Consumer Disputes Redressal Commission (NCDRC).
If counterfeit goods cause harm to consumers, such as in the case of counterfeit medicines or electronics, consumers can seek compensation for damages. Platforms may be liable if they fail to act on counterfeit listings or do not ensure product authenticity.
E-commerce platforms are required to proactively screen listings and implement anti-counterfeiting measures, such as using machine learning algorithms to detect fake products or counterfeit patterns. They must also verify seller information to prevent fraudulent sellers from listing counterfeit items.
Many platforms work closely with brand owners and intellectual property holders to identify and prevent counterfeit goods. This collaboration ensures that counterfeit items are taken down promptly, and legitimate sellers are protected.
Platforms may also require sellers to obtain third-party certifications that confirm the authenticity of their products, such as brand-specific certifications or quality seals, to further protect consumers from counterfeit goods.
If e-commerce platforms fail to comply with regulations related to counterfeit goods, they may face significant penalties under the Consumer Protection Act, 2019, and other related laws. This could include fines, revocation of licenses, and legal action.
E-commerce platforms may also face the suspension or termination of third-party sellers who repeatedly violate anti-counterfeiting regulations. Sellers involved in selling counterfeit goods could face legal action, including criminal charges and fines.
On a global scale, platforms like Amazon, eBay, and Alibaba have faced lawsuits and regulatory scrutiny for enabling the sale of counterfeit goods. As e-commerce is a cross-border activity, many countries are strengthening their laws to hold platforms accountable for counterfeit products, including through international cooperation on intellectual property rights enforcement.
Scenario: A consumer buys a smartphone charger from an e-commerce platform at a discounted price. After using it for a few days, the charger malfunctions and damages the consumer’s device. Upon further inspection, the consumer discovers that the charger is a counterfeit product, despite being listed as genuine.
The consumer should immediately contact the platform’s customer support and request a refund or replacement based on the counterfeit nature of the product.
If the platform does not resolve the issue within the given time frame, the consumer can file a formal complaint with the consumer forum or regulatory body (e.g., National Consumer Helpline).
The consumer can also inform the brand owner of the counterfeit product, which may help in taking legal action against the seller and platform.
If the consumer experiences harm due to the counterfeit product (e.g., device damage), they may seek compensation for damages under consumer protection laws.
E-commerce platforms can indeed be held liable for the sale of counterfeit goods, especially if they fail to take adequate measures to prevent the listing and sale of fake products. The Consumer Protection Act, 2019, and the Consumer Protection (E-Commerce) Rules, 2020, place significant responsibility on platforms to ensure that products sold are genuine and that consumer rights are protected. Platforms must take proactive steps to screen and verify products, take down counterfeit listings promptly, and provide avenues for consumers to report fraudulent activities.
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