E-Commerce Counterfeits Exposed: DIY Logos and Fake Chips

An investigation by Chinese media outlet The Paper has uncovered widespread counterfeit luxury goods practices across major e-commerce platforms, revealing sophisticated techniques including DIY logo modification kits, fake anti-counterfeiting chips with unregistered verification websites, and algorithmic recommendation systems that push counterfeit products when users search for authentic items. The report, published on June 5, 2026, comes just ahead of the “6·18” shopping festival, one of China’s largest e-commerce sales events.

The Investigation

The Paper’s “马上测” (Immediate Test) studio purchased counterfeit products from Taobao, Douyin (TikTok China), Weidian, and Pinduoduo, documenting a range of deceptive practices. On Taobao, a 239 yuan Chanel-style wallet was listed under the euphemistic label “小香款” (small incense style) with the double-C logo only slightly blurred to evade automated detection systems. On Douyin, a 65 yuan cap bearing a clear MIUMIU logo was marketed as “miu家同款” (same style as miu’s), while a 128 yuan Van Cleef & Arpels-style necklace came with full branded packaging.

DIY Modification Kits

One of the most striking findings was the prevalence of DIY modification kits. A 19.9 yuan “MIMI” hair clip sold on Douyin came with adhesive letter “U” stickers, allowing buyers to transform it into a counterfeit MIUMIU accessory worth over 3,000 yuan. Similarly, a bag purchased on Douyin came with original “double O” lock clasps and a tutorial card. When the reporter requested assistance, the seller provided detailed video and text instructions showing how to reshape the “double O” into Chanel’s iconic “double C” logo.

Fake Anti-Counterfeiting Systems

On Pinduoduo, investigators purchased a counterfeit Louis Vuitton-style bag that the seller claimed contained a proprietary anti-counterfeiting chip. When tested, holding a phone near the bag’s bottom did trigger a verification page with detailed product information. However, further investigation revealed that the URL powering this verification system was not registered with China’s Ministry of Industry and Information Technology (MIIT), making it entirely illegitimate.

Forged Documentation

A Chanel-style scarf purchased on Weidian came with a remarkably detailed forged receipt showing a purchase price of 3,680 HKD from “Yee An Cheng” in Tsim Sha Tsui, Hong Kong. The receipt included a salesperson’s name and the last four digits of a credit card number. However, investigation revealed that Yee An Cheng is actually located in Singapore, not Hong Kong, exposing the receipt as entirely fabricated.

Algorithmic Amplification

A critical finding of the investigation was the role of platform algorithms. Across all four platforms tested, searching for genuine brand products sometimes returned counterfeit items first. After searching for counterfeit-related keywords once, platforms continuously pushed similar counterfeit products to users. This raises questions about whether platform algorithms prioritize engagement and sales over product authenticity.

Legal Implications

Yang Yong, a researcher at the East China University of Political Science and Law Intellectual Property Law and Policy Research Institute, told The Paper that merchants using euphemistic labels and blurred images to sell counterfeits are engaging in trademark infringement and unfair competition. “Whether merchants directly affix trademarks for sale or assist in affixing trademarks after sale, they are essentially using trademarks in commercial activities,” Yang said. He noted that if sales volumes reach legal thresholds, criminal charges including counterfeiting registered trademarks could apply.

Zhao Liangshan, senior partner at Shaanxi Hengda Law Firm, told 21 Economic Network that e-commerce platforms bear responsibility under the E-Commerce Law. “When knowing or should have known about infringing activities on their platforms, [platforms] should take necessary measures such as removing listings, blocking, and closing stores in a timely manner,” Zhao said. “If they fail to do so, they shall bear joint liability for the expanded portion of damages.”

Broader Context

The investigation arrives amid heightened regulatory attention to online counterfeiting. The State Administration for Market Regulation (SAMR) launched a “Crack Down on Fakes, Clean the Source” special campaign in 2026, targeting counterfeit certificates and products in traditional crafts markets. Separately, the Supreme People’s Procuratorate reported in July 2025 that Chinese prosecutors had prosecuted over 10,000 people for e-commerce-related crimes between January 2024 and June 2025, as reported by Xinhua News Agency.

What to Watch

As the “6·18” shopping festival approaches, millions of consumers face heightened risk of purchasing sophisticated counterfeits that are increasingly difficult to distinguish from authentic products. Key questions remain: Will the implicated platforms take meaningful enforcement action beyond the single store that was shut down? How will regulators respond to algorithmic recommendation of counterfeit goods? And will the festival see enhanced anti-counterfeiting measures from both platforms and regulators?

Consumers who have purchased counterfeit products may have recourse under Chinese consumer protection law, which provides for refunds plus triple damages in cases of merchant fraud.