Office worker Lee Mo (31) recently browsed online shopping malls to purchase an expensive travel bag. Shortly after, an advertisement popped up on Lee's Instagram, claiming the brand's products were available at a lower price. When Lee entered the chat room through the provided link, the seller sent several photos of the products taken in the warehouse. The price was about one-third of that on the official shopping mall.
According to industry sources on the 16th, global online platforms such as Instagram and YouTube are becoming hotbeds for counterfeit sales as they display advertisements and content from illegal counterfeiters without any review. Companies like Meta and Google, which operate these platforms, are currently utilizing artificial intelligence (AI) to monitor illegal content; however, they face criticism for being passive in their approach, focusing more on 'post-event sanctions.'
Instagram and YouTube display regulations that must be adhered to when posting content and advertisements, but these regulations are merely voluntary. Google states through notifications, "The sale or promotion of counterfeit products is prohibited," explaining that this applies not only to the content of the advertisement but also to the websites or applications to which the advertisement links. Likewise, Instagram notes, "The sale of counterfeit products is prohibited," warning that "if caught, the account will be deactivated."
However, global big tech companies are criticized for only asserting the role of platforms without providing clear solutions to counterfeiting. Meta and Google claim to filter illegal content using AI technology. Still, due to the vast number of posts and the reality that sellers operate multiple accounts to continue selling counterfeits, it is practically challenging to eradicate such sales. Although there is a feature to report counterfeit sellers, many users are unaware of its existence.
Victims of the platforms' passive response find themselves helpless. Looking at victim cases through Instagram, sellers post links to anonymous open chat rooms or fake direct purchase sites to lure buyers. Recently, in YouTube live broadcasts, there has been a rise in sellers directly trying on products and selling counterfeits at low prices. They interact with viewers through real-time comments while disclosing their faces, height, weight, and other information.
According to the Korea Consumer Agency, most fraudulent overseas direct purchase shopping inquiries received in the last three years have occurred through social media. From 2021 to 2023, there were a total of 2,064 consultations reported to the International Trade Consumer Portal regarding fraudulent overseas direct purchase shopping malls. Among the 1,821 cases where the access routes were confirmed, 1,499 cases (82.3%) were accessed through social media. By media type, Instagram accounted for 762 cases (41.8%), and YouTube recorded 460 cases (25.3%), making up the largest share.
The Korea Consumer Agency has stated that it will request active cooperation from Meta and Google to block illegal and harmful content and advertisements, but industry insiders express concerns regarding the passive responses of global big tech companies. A platform industry official remarked, "When a report is made, the platform reviews and imposes sanctions. However, it is not easy for the platform to proactively investigate the legality of all content."
Le Eun-hee, a professor of consumer studies at Inha University, noted, "As cases of user victimization increase, the image of platforms deteriorates and their trustworthiness declines," adding, "To reduce counterfeit sales among the vast content, there needs to be a self-purification activity among users. Currently, platforms are also neglecting to inform users that they can report such issues."