Meta Platforms, the owner of Facebook and Instagram, is reportedly struggling to stop counterfeiters from peddling fake luxury goods from major designers like Gucci, Louis Vuitton, Chanel across its social media apps.
The platforms have emerged as hot spots for the counterfeit trade to exploit their range of social and private messaging access to reach users and potential buyers.
Industry groups and counterfeit investigators have compared the attempts made by brands to police services like Facebook, Instagram, and WhatsApp as a game of “whack-a-mole.”
Benedict Hamilton, a managing director at Kroll, a private investigation company hired by brands hurt by counterfeiting and smuggling, explained.
“Facebook and Instagram are the key marketplaces where counterfeit goods get sold to members of the public. It used to be eBay 10 years ago, and Amazon five years ago,” he said.
Online commerce is a crucial priority for Meta, as the company pushes new shopping features that could help grow its revenue. The social media giant has signaled a hard stance against counterfeiters while facing pressures like ads tracking changes and a decline in user growth.
According to Instagram, luxury brands like Dior, Balenciaga, and Versace have adopted shopping features on the app while other high-end designers like Oscar De La Renta and Balmain were using in-app checkout.
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