Watch out for the Del Boys! The sale of fakes is going offline and back to the 1980s

Yet Intellectual Property Office (IPO) data published in September suggests counterfeiters may be returning to more traditional sales channels, with a growing share of Trading Standards investigations now linked to outdoor markets, shops and car boot sales. At the same time, observations and concerns about counterfeit and design-infringing goods being sold via websites and social media have declined.

It seems as though Del Boy’s days of Hooky Street deals are returning, as the trade in fake goods with no money back and no guarantee shifts offline. This may be a result of an IPO-led crackdown, as well as changing consumer behaviour. In 2022, the government launched its first IP counter-infringement strategy, involving collaboration with law enforcement and industry. The IPO has worked with companies like Vinted to tackle fakes and run awareness campaigns to help consumers choose safe, not fake, products.

E-commerce has, understandably, been a strong focus for counter-infringement efforts. Online shopping is booming and criminal activity tends to follow the money, with the IPO identifying online marketplaces and social media as key routes for counterfeiting products. Is increased scrutiny and law enforcement making digital channels less appealing for criminals and pushing them offline? Are counterfeiters also following consumer trends?

Outdoor markets and car boot sales are popular among shoppers looking for bargains and embracing the fast-growing second-hand economy. This may help explain why the proportion of Trading Standards investigations involving counterfeit goods sold at car boot sales has more than doubled over the past five years, rising from 10% to 22%. In contrast, website investigations dropped 12% during this period, while social media counterfeit goods investigations declined 15%.

This isn’t to say that the online trading of fake goods isn’t a concern, as it’s unlikely to go away. However, the shift away from counterfeiting on websites and social media creates different risks for shoppers and brands.

Purchasing at car boot sales and outdoor markets creates less of a digital trail, unlike online shopping where there might be payment records, seller profiles, messaging histories and delivery information. All of this information can help authorities trace the flow of fake goods, disrupt counterfeiting networks, bring offenders to account and seek refunds and justice for exploited shoppers.

Outdoor markets, car boot sales, and pop-up shops are all very temporary, giving counterfeiters an easy way to disappear once they’ve ripped off shoppers. This means consumers need to be extra vigilant to avoid being left out of pocket after buying poor-quality and even dangerous counterfeit products.

When purchasing, they should double-check product labels for recognised safety and certification marks, QR codes that link to official brand websites, and care instructions. It’s also worth checking for grammar and spelling mistakes, unusual wording and blurred or faded printing.

Consumers should also pay close attention to product quality, including stitching and seams on clothes, loose parts or flimsy construction on electrical items or toys, and the quality and appearance of packaging. Do brand logos appear correctly? Is the spelling and grammar correct? If in doubt, shoppers should use their smartphones to search for genuine products online to verify what is being sold.

The risks also change for brands when counterfeit sales move offline, because markets and car boot sales are less traceable and harder to monitor at scale. It is possible, though, to use the internet and social media to track down potential problems. Many such sales are advertised digitally and may quickly attract comments from dissatisfied shoppers, which can flag counterfeiting hotspots for brands.

Brands are also investing in advanced labelling techniques, including QR codes, RFID tags, unique serial number, tamper-evident labelling, and Digital Product Passports. These steps can make it easier for shoppers to quickly verify genuine products and avoid fakes.

Collaboration with Trading Standards, law enforcement agencies and private investigators is playing an increasingly important role as the fight against fakes moves offline. Brands often provide training and authentication guidance to help identify genuine product features, packaging, security markings and any other indicators of authenticity. This intelligence helps investigators to detect counterfeit goods and gather evidence, while registered trademarks, designs, copyright and patents provide the legal foundation needed to take swift and effective enforcement action.

There might be a temptation to view the resurgence of offline counterfeiting through the nostalgic lens of Del Boy types and the market trader culture of previous decades. This couldn’t be any further from the reality. Del Boys don’t offer deals that favour consumers, and buying fake goods can fuel organised crime, damage the brands shoppers genuinely love and put consumers at risk. As counterfeiting returns to markets, car boot sales and shops, businesses and enforcement agencies will be working hard to protect both the public and intellectual property from rogue traders.

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Daniel Fletcher is a Senior Associate at Forbes Solicitors.

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