Counterfeit Crackdown: Platforms Fail to Curb Fake Goods

According to a recent investigation by the Information Technology and Innovation Foundation (ITIF), major e-commerce platforms like Temu, AliExpress, and Shein are failing to effectively curb the sale of counterfeit goods on their platforms. The study, conducted in 2025, found that 24 out of 51 items purchased from these sites were "likely counterfeits" across various product categories, including luxury goods and household items.

The report highlights a fundamental disconnect between the platforms' profit motives and their adherence to intellectual property (IP) and consumer protection regulations. ITIF has urged the United States Trade Representative (USTR) to designate Temu, AliExpress, and Shein as "notorious markets," a move that would increase scrutiny and enforcement efforts against these platforms.

Furthermore, the ITIF has advised the US Customs and Border Protection (CBP) to enhance its inspection processes, potentially leveraging AI technology to more efficiently identify suspect listings and high-risk shipments. The organization has also proposed the creation of a Foreign Counterfeit Complaint Center (FC3) by the Department of Homeland Security to aid in the reporting and enforcement of counterfeit goods.

The report notes that China and Hong Kong remain the principal origins of counterfeit goods globally, accounting for over 90% of the total value of counterfeit goods intercepted by the CBP in 2024. Watches, jewelry, handbags, and apparel were among the top categories of counterfeit imports from these regions.