(This story originally appeared in on Nov 05, 2018)

BENGALURU: One out of every five products sold on e-commerce platforms are counterfeit, and the chances of a fake are the highest for cosmetics and fragrances, says a survey by citizen engagement platform LocalCircles.The survey, shared exclusively with TOI, had a sample size of about 30,000. To a question by LocalCircles on whether they had received counterfeit products in the previous six months, 20% said yes. A small percentage also said they wouldn’t know whether what they received was fake or genuine.Asked which e-commerce site ships the highest percentage of fake goods, 37% of respondents said Snapdeal , 22% Flipkart, 21% Paytm Mall and 20% said Amazon . On which product categories see the most fakes, 35% of respondents said fragrances, a similar percentage said cosmetics, 22% said sporting goods, and 8% said bags.The last two questions offered four options each and respondents had to choose from them.TOI sent questions on the issue to the four major e-commerce companies. All responded saying they have a strict policy to stop the sale of fake goods and even offer free refunds to users. Some said they de-list sellers once it’s proven that they shipped fake goods. The e-tailers said they even train their sellers to counter the issue.Counterfeits are a major challenge globally, too, for online players like Alibaba and Amazon. It’s especially so for those e-tailers which operate a marketplace with third-party sellers on a big scale. The US government had warned Alibaba Group affiliates to arrest the rise of counterfeit goods that were being shipped to the US.The latest survey comes during the final leg of the festive season sale. It’s a time when e-commerce channels are in fierce competition to show high sales. Industry analysts say this is an environment conducive for unscrupulous sellers. India’s drug regulator recently sent notices to leading e-commerce platforms for allegedly selling spurious cosmetic products.Fakes are a bigger problem beyond the metros, where e-commerce is a new phenomenon and many users do not know how to differentiate an original product from a fake one. “Counterfeits, substandard and unauthorised goods being sold on marketplaces hurt the business of genuine sellers,” said a spokesperson of online seller group All India Online Vendors Association (AIOVA).The association said that while some marketplaces have a good pre-screening system so that such sellers are not allowed to list products, a huge pattern of systemic inflow of fake goods is happening through “shell sellers”. “It is also deliberately diluting the market of a specific brand or category, like we saw in the case of a sportswear brand where the marketplace itself was involved in selling such goods,” the spokesperson said.The department of consumer affairs has been looking into the issue and considering ways to ensure more accountability from e-commerce companies. The government may come out with a law.