New Chinese government rules restrict counterfeit goods in e-commerce
With a population of over 1.4 billion people, China is the world’s most populous country and the world’s largest exporter of commodities, assisted primarily by a gigantic industrial sector that covers the country. This industrial prowess has enabled the widespread manufacture and exportation of counterfeit goods, with China producing an estimated 70% of the world’s counterfeit goods.
China’s measures for the Supervision and Administration of Online Transactions just went into force, increasing the measures that force infringing online stores to be subject to stiffer penalties. Through the State Administration of Market Regulation, The Chinese government has implemented several measures in order to tighten supervision on the circulation of counterfeit goods in e-commerce. Some of these rules include:
- To improve transparency of sellers’ identity
- Access to more detailed trade information
- Live-streaming sales subject to supervision
Akin to China, the circulation of counterfeit goods in Indonesian e-commerce is increasingly widespread, especially during the pandemic where people are starting to switch to online habits, including online shopping. Indonesia itself for several years has been in the Priority Watch List (PWL) status released by the United States Chamber of Commerce. Regarding the rise of counterfeit goods, while the Chinese government increases the supervisory function of seller transparency in e-commerce, the Indonesian government chooses to synergize with various parties, including e-commerce.
Unlike in China, primary laws in Indonesia do not require e-commerce to actively monitor IP infringements, while secondary laws (Circular of the Minister of Communication and Information Technology Number 5 of 2016) state that a platform has the obligation to manage electronic systems and content in a reliable, safe and responsible manner. Therefore, from the e-commerce side, efforts to limit the circulation of counterfeit goods is carried out by educating business partners, opening complaint channels, taking down counterfeit goods from the platform, and closing seller stalls.
In order to effectively limit the circulation of counterfeit goods, efforts are needed from the brand owners themselves, one of which is by conducting online and offline market surveys and inspections. Protecting the brand means protecting the business’s assets as well as its consumers.
Integrity Asia has been trusted by its clients in providing professional brand protection services, which consist of product integrity threat detection, trademark investigations, product integrity threat investigations, and enforcement. For more information about brand protection programs and other risk mitigation services, do not hesitate to contact Integrity Asia. Let us be your partner in protecting your brand and consumers.