Warning for South African shoppers

Counterfeit goods and product recalls are on the rise in South Africa, and consumers must stay alert, check for authenticity, and keep records or risk being duped, out of pocket, or even harmed.

Nedbank recently warned that fraudsters are targeting spazas, street vendors, budget supermarkets and high-end stores alike.

This means that regardless of where you shop, you should be on the lookout for counterfeit goods.

“We’ve seen quite a few recent scandals in the news involving counterfeit retail items and fake branding on food products,” Nedbank said.

At the same time, a number of manufacturers have also issued product recalls.

Although these can be concerning, Nedbank said they are less of a threat than counterfeit or expired goods, which are sold under false pretences.

“The manufacturer has at least become aware of a defect or danger in the product, alerted the public, issued a product recall, and taken steps to refund you if you have any defective products to return,” the bank said.

In contrast, counterfeit goods are not only a waste of money, but they can also damage your health in the case of fake, contaminated or expired food brands.

When consumers discover that something they bought has been listed in a product recall, they can at least replace the item.

“On the other hand, finding out that you bought a fake product could be the start of a tedious process to get your money back,” the bank explained.

“Although there’s a difference between a product recall and a counterfeit product, a manufacturer or retailer may be forced to issue a product recall if criminals have infiltrated their supply chain with counterfeit versions of legitimate brands.”

Alternatively, Nedbank explained that a manufacturer might notice an issue with their genuine product during in-house quality control, get reports of defective batches from retailers, or receive customer complaints that alert them to the defect.

“Once the manufacturer has established the cause and scope of the defect, they will issue a product recall on all affected products,” it said.

“Whenever you see a notification of a product recall in the news, check the products you use to see if any are included. Follow the product recall guidelines and return the item for repair, replacement or a refund.”

The bank added that product recalls are another reason to keep receipts whenever you buy anything.

Consumer rights

Nedbank explained that counterfeit products are illegal, fake versions of legitimate products designed to convince people that they’re buying an original item.

“It violates intellectual property (IP) rights like trademarks, patents, and copyrights and comes with none of the quality guarantees or after-sales service offered by the legitimate IP owner,” the bank said.

“Fraudsters manufacture counterfeit goods in a huge range of industries, including fashion, home furnishings, personal accessories, processed foods, vehicle and machinery parts, electronics, and medicines.”

To avoid counterfeit goods, always check for markers that identify authentic product brandings, like serial numbers, holograms, or official packaging, before buying anything.

When a customer suspects that a product may be fake, the bank explains that they can take certain legal steps.

“As a consumer, if you’ve been tricked into buying counterfeit products, the Consumer Protection Act (CPA) gives you the right to seek legal recourse,” the bank said.

“Submit a complaint to the National Consumer Commission (NCC) to investigate the case and prosecute the fraudsters, and then take legal action to demand damages or a refund.”

Victims should consult a lawyer for help since, depending on the value involved, the case could be heard in either a small-claims court or a higher court.

The small claims court offers free assistance and accepts claims up to a maximum of R20,000.

“If someone is producing a fake version of a brand that you own, consult a lawyer who specialises in IP rights to explore your options,” the bank suggsted.

Third-party resellers

Third-party resellers are a common feature of eCommerce and social media sales pages today. Many well-known and reputable websites, like Gumtree, Amazon, and Takealot, allow third-party sellers.

This means that although a consumer may be familiar with and trust a certain website, they are not guaranteed a genuine product.

“Although many are no doubt honest entrepreneurs selling genuine branded products, it’s become clear that many aren’t – and buying from the second kind is a risk you want to avoid,” Nedbank said.

The bank said the key issue is that online stores do not need to be based in South Africa.

If that seller is operating under the laws of another country and you expose their fake products by complaining to the NCC, citing your rights under the CPA, you might get the product restricted in South Africa.

However, it won’t necessarily help you get your money back.

“Similarly, any court action to get a refund would take place in the jurisdiction where the seller is based, which could become complicated and costly,” the bank said.

Some shoppers may decide that it is easier to avoid buying from third-party resellers entirely.

However, if they break that rule, Nedbank stressed that they should exercise extra vigilance.

When a consumer encounters a fraudulent seller, good steps to take include checking the seller’s reviews and ratings to verify their business, keeping all receipts and documents, and reporting the seller to the NCC when the consumer has been sold a fake product.

“You need to stay alert to ensure you get what you pay for, so keep yourself informed, take product recalls seriously, and watch out for shady dealers in counterfeit goods,” Nedbank said.