Online spending is exploding, with an increase of over 60% in the first half of 2017 alone. Unfortunately, not all products sold online are legitimate. Counterfeit and knock-off products not only cost a brand financially but can also impact reputation and undermine consumer confidence. For this reason, monitoring online marketplaces is a critical component of brand protection.
The Business Challenge:
A titan in the world of gaming systems and peripheral accessories discovered a vast quantity of counterfeit and knock-off products infringing on their IP in the marketplaces. Concerned not only with their bottom line but with their reputation as a maker of high-quality products, the company turned to their legal department for help.
That legal team partnered with AppDetex to maximize their ability to monitor, identify, and eliminate not only the fraudulent listings but also identify and neutralize the sources of the listings.
The AppDetex Solution:
- Mindful of customer time and resources, as well as avoiding ‘whack a mole’ type enforcements, AppDetex worked to show program efficacy.
- The top 20% of bad actors are responsible for 80% of fraudulent listings within a given category. Focusing enforcement efforts on these sellers, AppDetex was able to quickly address the most egregious sellers and more thoroughly handle subsequent takedown and evolution. From this, AppDetex provided any discovered intelligence and seller profiles to the customer, allowing swifter offline action to take place.
- AppDetex utilized their proprietary targeted search, filtering and labeling technology to quickly identify potentially infringing sellers.
- Test buys were initiated, and questionable products sent to the brand holder for verification of authenticity.
- As seller aliases were identified, the connected profiles were further targeted, resulting in a takedown at the top of the chain rather than multiple smaller takedowns of individual listings.
- AppDetex turned this information over to the brand holder’s legal team who then worked with customs and border control officials to help identify counterfeit products, resulting in the seizure of the knock-off items.
- AppDetex set up a security system to scan the online marketplaces 24/7 to uncover any new infringers utilizing the company’s marks or brand names in their listings. The AppDetex online interface allows customers to enter and track as many sellers and brands as necessary to secure the brand’s integrity.