Low-cost Chinese Cosmetics Disguised as Famous Brands Illegally Sold Worth 18 Billion Won

The Incheon International Airport Customs Office has apprehended A (in his 50s), the representative of an e-commerce company, for illegally selling low-cost Chinese cosmetics disguised as high-end cosmetics such as Dior, Estee Lauder, and Kiehl's.

According to the Incheon International Airport Customs Office on the 12th, A has been charged with illegally importing over 130,000 counterfeit cosmetics (worth approximately 18 billion won) from China and selling them on domestic open markets over the past seven years since 2017.

Investigations revealed that A used clever methods to deceive consumers by claiming that the counterfeit cosmetics purchased from Chinese wholesale sites were genuine products bought in the United States. He sent the goods to a ghost company established in the U.S. and repackaged them as if they were purchased from a legitimate U.S. retailer before distributing them on large domestic open markets.

To deceive consumers into believing that they were genuine products purchased in the U.S.

Carefully replicated counterfeit products to mislead consumers

The counterfeit products identified by customs authorities imitated various well-known brands, including Dior, Jo Malone, Estee Lauder, and Kiehl's. These products not only bore logos identical to the genuine ones but also included meticulously replicated product manuals and unique serial numbers.

In particular, A demonstrated meticulousness by directing consumers to overseas websites where they could check the manufacturing dates or expiration dates of the products using the replicated serial numbers displayed on the sales screen, thus avoiding consumer suspicion. It was determined that many consumers mistook these items for genuine products and made purchases due to these sophisticated counterfeit techniques.

While inspecting famous brand cosmetics sold online, customs authorities discovered products priced almost half of the regular price and noticed buyer reviews mentioning side effects or suspicions of counterfeits, prompting an investigation.

The customs office identified A as a suspect in the illegal import of counterfeit cosmetics through an analysis of the import routes. Subsequently, they confiscated the counterfeit cosmetics stored at A's business location and secured crucial evidence regarding the purchase of counterfeit products, illegal import routes, and sales histories through forensic investigations of A's mobile phones and PCs.

Kim Jong-ho, the head of the Incheon International Airport Customs Office, stated, “This case involved laundering the shipping destination to the U.S. despite incurring shipping costs to avoid consumer suspicion regarding counterfeit products. It is crucial to exercise particular caution when purchasing products that are significantly cheaper than genuine ones or products that have not been verified as legitimately imported.”

He added, “We will make every effort to detect counterfeit items that are brought in through various routes in advance and to establish fair trade orders, blocking illegal import items that infringe on consumer rights and threaten public health.”

Image Sources: Jo Malone counterfeit products. / Incheon International Airport Customs, Estee Lauder counterfeit cosmetics. / Incheon International Airport Customs, Dior counterfeit cosmetics. / Incheon International Airport Customs