According to a study conducted by the community social media platform Local Circles, one in five consumers has received counterfeit products in the past year. The research indicates that a significant portion of these fake products is sold through ecommerce platforms, particularly in categories such as shoes, cosmetics, and fragrances. The study gathered over 102,000 responses and reported that 41% of customers encountered counterfeit items because of restrictive seller return policies or their inability to lodge complaints. Furthermore, 43% of respondents noted the absence of a mechanism to report counterfeit products, which ultimately aids sellers of fake goods by prolonging their detection and removal.
At present, online shopping constitutes only 7% of the nation’s total retail market, valued at $70 billion. This figure is projected to rise due to increasing internet accessibility, heightened smartphone usage in rural areas, and affordable internet services. The survey revealed that 41% of participants were from Tier I cities, while 28% were from Tier II cities, and 31% hailed from Tier III, IV, V, and rural regions, underscoring the ubiquity of the counterfeit product issue across various locations.
The survey highlights the issue of sellers exploiting the lack of a return policy by intentionally shipping incorrect items, fully aware that consumers lack the option to return them. This behaviour is particularly prevalent on platforms such as Meesho and Flipkart. Conversely, Amazon is favoured by most consumers for its efficient returns and refund processes. Meesho, Tata Neu, and Ajio garnered preference from fewer than 2% of respondents. On rapid commerce platforms, 22% of consumers opted for Bigbasket for returns and refunds, while 13% favoured Swiggy Instamart and Blinkit, and less than 6% of users preferred Zepto. Overall, one-third of users expressed dissatisfaction with the return and refund policies and procedures of any quick commerce platform.
There is a pressing need for the government to implement clear standards for returns, refunds, and the management of counterfeit product complaints. Local Circles intends to present the survey findings to the Central Consumer Protection Authority (CCPA), the Consumer Affairs Ministry, the Bureau of Indian Standards (BIS), and the Department for Promotion of Industry and Internal Trade (DPIIT) to advocate for necessary policy reforms and enforcement.
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