Fake or Counterfeit Product From Marketplace: Who Is Liable?

You order a brand-name phone from a big online marketplace. You see the brand logo on the listing, the original-price-with-discount banner, the four-star reviews. The box arrives. You open it. The serial number does not match what the brand's website shows. The accessories look slightly off. You take it to the brand's service centre and they tell you what you most feared — it's a counterfeit. You go back to the marketplace and message the seller. The seller's account has gone silent. The marketplace says, "We are just an intermediary — please raise a return request with the seller."

This is one of the most common, and most frustrating, consumer disputes in India today. The good news is that the law since 2019 — the Consumer Protection Act, 2019 and the Consumer Protection (E-Commerce) Rules, 2020 — has finally drawn clear lines on who is liable when you get a fake from an online marketplace. The marketplace is not a free-floating "intermediary" anymore. The seller is not the only one on the hook. This article walks through the new framework in plain words, with the practical steps a buyer should take from day one.

Why Online Shopping Is Fully Covered by the 2019 Act

The 1986 Consumer Protection Act predated online shopping. Many e-commerce buyers found themselves caught between "I bought it online, not in a shop" and "the seller is in another state, the platform is somewhere else." The 2019 Act fixed this by writing electronic transactions directly into the definitions.

Section 2(7) of the Consumer Protection Act, 2019 defines a "consumer" to include any person who buys goods or hires services for consideration, and adds, in explicit terms, that the expressions "buys any goods" and "hires or avails any services" include "offline or online transactions through electronic means or by teleshopping or direct selling or multi-level marketing." So the moment you click "Buy Now" on a marketplace app and pay, you are a consumer under the Act. There is no separate "online consumer" category — you have all the rights any other consumer has.

Section 2(17) of the same Act defines "e-commerce" as buying or selling of goods or services including digital products over digital or electronic network. So the seller and the platform are e-commerce participants, not merely "online stores", and the Act expressly contemplates them.

Two more definitions matter for fake-product disputes. Section 2(43) defines "spurious goods" as goods which are falsely claimed to be genuine. That is exactly what a counterfeit phone, watch, cosmetic or supplement is — sold as the original brand, but actually not the original brand. Section 2(42) defines "service" broadly enough to capture the marketplace's role of hosting listings, taking payment, and providing the delivery interface. So both the goods angle and the service angle are covered.

What the E-Commerce Rules, 2020 Actually Say

The Central Government, using its powers under the 2019 Act, notified the Consumer Protection (E-Commerce) Rules, 2020. These rules sit on top of the Act and lay down duties for two kinds of e-commerce entities — marketplace e-commerce entities (platforms that host third-party sellers — like a big shopping app) and inventory e-commerce entities (platforms that own the goods they sell themselves). For your fake-product dispute, the line between the two decides who you can drag into the case.

Rule 4 of the E-Commerce Rules, 2020 lays down general duties for every e-commerce entity. It must (a) be a registered legal entity in India or have a registered office in India; (b) display its legal name, principal address, contact details, customer-care details and grievance officer details on the platform; (c) ensure no unfair trade practice in the course of business; and (d) acknowledge consumer complaints within a fixed working-day window and redress them within the period prescribed under the rules. Refusal to return spurious goods or to refund the consideration paid for spurious goods is itself a banned practice — the marketplace and the seller cannot simply ghost you.

Rule 5 lays down the duties of sellers on a marketplace. Each seller must enter into a written undertaking with the platform that the descriptions, images and content of the listing accurately reflect the appearance, features, quality, purpose and other relevant details of the goods. The seller must display its legal name, principal address, customer-care details, GSTIN and PAN where applicable, and must give a clear total price (no hidden charges). The seller cannot refuse to take back goods or refund where the goods are spurious or deficient.

Rule 6 lays down extra duties for the inventory e-commerce entity — the kind of platform that owns and sells the goods itself. It must give accurate information about the goods, including country of origin, return, refund, exchange, warranty, guarantee, delivery and shipping, and modes of payment. Where an inventory entity sells you a fake, it cannot hide behind "the seller is responsible" — it is the seller.

Together, Rules 4, 5 and 6 mean the marketplace has its own legal skin in the game. It is no longer just a billboard. Online shopping rights are now actively policed.

Counterfeit, Fake, Spurious: The Words That Decide Your Case

What you call the goods in your complaint matters more than people realise. The Act's term of art is "spurious goods" — Section 2(43). The moment you allege spurious goods, you trigger a specific set of provisions: it amounts to an unfair trade practice; refusing to take it back or refund is itself a banned practice under the Direct Selling and E-Commerce Rules; the Central Consumer Protection Authority (CCPA) can directly act against the platform and the seller; and the District Consumer Commission gets clear jurisdiction.

The Act also covers "defective goods" (Section 2(10)) and "deficient services" (Section 2(11)). In a fake-from-marketplace case, you usually have both: the goods are spurious and defective (not genuine, not delivering the brand's promised quality), and the marketplace's service of selling, listing and supporting the transaction has been deficient (no verification, no clean grievance redressal, no refund). Plead all three heads in the complaint — spurious, defective and deficient — and let the commission pick the strongest.

The Act also separately classifies the manufacture or sale of spurious goods as an unfair trade practice, and gives the Central Consumer Protection Authority (CCPA) power to act against it. The CCPA can investigate, issue safety notices, order recall, order refund of prices and impose penalties. So even where individual buyers do not file complaints, the regulator can act.

Who Exactly Can You Sue?

This is where many buyers stop, because they think they can only chase the seller — usually an unknown small entity in another state, sometimes with a fake address. The 2019 Act and the 2020 Rules allow you to add several respondents at once. In a typical fake-product case, your complaint can name:

• The seller — the registered entity that listed and dispatched the product;
• The marketplace e-commerce entity — the platform that hosted the listing, took the payment, displayed reviews, and operated the buyer-protection promise;
• The fulfilment / warehouse partner, where relevant — especially where the platform's own warehouses stored and shipped the goods;
• The brand owner in rare cases where there is reason to believe the brand owner is complicit (usually it is not, and the brand owner is itself a victim of counterfeiting).

Why drag in the platform when it says it is "just an intermediary"? Because under Rule 4(11) of the E-Commerce Rules, 2020, the marketplace must ensure that any seller it allows to use its platform complies with the rules — and where there is non-compliance, the marketplace's own deficiency in service is engaged. Rule 4(2) and Rule 5 give clear minimum-information duties that, if breached, make the platform liable as a service provider under Section 2(11) of the Act. The District Consumer Commission has, in many reported and unreported decisions, fixed both the seller and the platform jointly and severally.

The Evidence Checklist Before You Complain

A fake-product complaint is won on evidence. Before you file or send a notice, build a clean file:

• The order page — screenshot showing brand name, seller name, price, your order date and order ID;
• The invoice and tax invoice downloaded from the platform;
• The payment proof — bank statement, card statement, UPI screenshot;
• The packaging — photos of the outer box, inner box, seals, labels, IMEI/serial number stickers;
• The product itself — clear photos and where possible a short video showing the parts that prove counterfeit (logo placement, build, serial number);
• A genuineness certificate or rejection letter from the brand's authorised service centre — this is the single most powerful document;
• The platform's chat / email replies — every "we are an intermediary" reply becomes evidence later;
• The seller's response or non-response;
• The return-request screenshots with status and timestamps.

Once the file is ready, the next step is a clear legal notice to the seller, the platform and (where applicable) the warehouse partner — quoting Section 2(43) spurious goods, Rule 4, Rule 5 and Rule 6 of the E-Commerce Rules, 2020, and demanding refund, replacement and compensation within 15 or 30 days.

The Three Routes of Redress

For a fake from a marketplace, you have three parallel routes — and a smart buyer uses all three.

Route 1 — National Consumer Helpline (1915 / consumerhelpline.gov.in). This is the lightest-touch route. File the grievance on the National Consumer Helpline portal. It is forwarded to the company. Many platforms resolve at this stage to avoid escalation. Cost: nil. Time: a few weeks.

Route 2 — CCPA complaint. The Central Consumer Protection Authority created by the 2019 Act handles class issues — unsafe goods, misleading advertisements, and yes, spurious goods. A CCPA action does not directly refund you, but it can force the platform and the seller into recall, penalty and corrective advertising. For widespread counterfeit listings on a single platform, the CCPA route applies pressure that an individual complaint cannot.

Route 3 — District Consumer Disputes Redressal Commission. This is where you get personal monetary relief — refund, replacement, compensation for mental harassment, compensation for time and effort, and litigation costs. The District Commission entertains complaints up to ₹50 lakh under the Consumer Protection (Jurisdiction of the District Commission, the State Commission and the National Commission) Rules. You can file in the commission where the cause of action arose, where you reside or work, or where any of the opposite parties resides or works. The two-year limitation under Section 69 runs from the cause of action — typically the platform's final refusal to refund.

Pleadings should attach the genuineness rejection from the brand, all platform chats, the invoice and the bank statement. Pray for: (a) refund with interest from date of payment, (b) replacement only if a replacement of genuine brand is possible (often not, in counterfeit cases), (c) compensation for mental harassment and loss of time, and (d) costs. Where the counterfeit goods endangered safety — fake medicines, fake helmets, fake chargers, fake cosmetics — also pray for punitive damages and a recommendation to the CCPA.

What Should I Actually Do Now?

1. Stop using the product. If it is a charger, a cosmetic, a medicine or a battery-operated device, do not keep using it. Fake products can be unsafe.
2. Get the brand's verdict in writing. Walk into the brand's authorised service centre. Ask for a written rejection or non-genuineness note. Take photos of the serial number and any IMEI or batch number.
3. Raise a return on the platform — but in writing. Use the in-app return request, and follow up with an email to the platform's grievance officer (their address must be on the platform under Rule 4 of the E-Commerce Rules, 2020). State clearly that the product is spurious under Section 2(43) of the Consumer Protection Act, 2019, and demand a refund, not a "store credit".
4. File on the National Consumer Helpline. Log in at consumerhelpline.gov.in or call 1915. Attach the order page, the invoice and the brand's rejection note. Save the docket number.
5. File at the CCPA through the Department of Consumer Affairs portal, especially if multiple buyers have flagged the same listing or seller for counterfeits.
6. Send a legal notice citing Section 2(43), the E-Commerce Rules 2020 (Rule 4, Rule 5, Rule 6 as applicable), and the unfair-trade-practice provision under Section 2(47) of the Act. Give 15 or 30 days. Send to seller, platform and (where relevant) warehouse.
7. If counterfeit goods caused harm — burnt by a fake charger, allergic reaction to a fake cosmetic, money lost to a fake supplement — also file an FIR. Cheating sections of the Indian Penal Code apply, and where the counterfeiting infringes a trade mark, the Trade Marks Act 1999 provides additional offences. Learn how to push back if police refuse.
8. File before the District Consumer Commission within two years of the platform's final refusal. Implead seller, marketplace and warehouse partner. Plead spurious goods, defective goods and deficient service.
9. Keep proof of every step. A clean, dated paper trail beats long arguments every time.
10. Warn other buyers by leaving a clear, fact-based review on the listing — but stick to facts. Defamatory language can backfire.

How Pinaka Legal Helps Online Shoppers

Fake-from-marketplace cases turn on getting the framing right at the first letter. At Pinaka Legal we typically begin by anchoring the complaint in Section 2(43) (spurious goods) and the E-Commerce Rules, 2020 (Rules 4, 5 and 6, as applicable), rather than vague "the product is bad" language. We help buyers collect the right evidence — the brand-rejection note, the platform's "intermediary" emails, the seller-information disclosures the platform is required to display — and then send a single tightly-drafted legal notice to seller, marketplace and warehouse. Where that does not unlock refund, we file before the District Consumer Commission with the right respondents and the right prayers, so the marketplace cannot hide behind "we are just an intermediary." For high-value or safety-related fakes, we also push the criminal angle and the CCPA route in parallel.

The Marketplace Is On the Hook Too

The single biggest myth in counterfeit-from-online disputes is that the platform is untouchable. It is not. The 2019 Act drew online transactions inside the definition of "consumer". The 2020 E-Commerce Rules wrote specific duties onto the marketplace. Refusal to take back spurious goods is itself banned conduct. The District Consumer Commission, the CCPA and even the criminal law together give a buyer multiple pressure points. The marketplace will keep telling you it is an intermediary; the law has politely but firmly stopped accepting that as a complete answer. Get your evidence in order, name the right respondents, plead spurious goods clearly, and the refund — and the compensation — usually follow.

Written by the Pinaka Legal Editorial Team. For queries on counterfeit-product complaints, online shopping disputes or consumer commission cases, call +91 8595704798 or email info@pinakalegal.com.

Frequently Asked Questions

Is the marketplace really liable, or just the seller, when I receive a fake product?

Both. Under the Consumer Protection (E-Commerce) Rules, 2020, the marketplace e-commerce entity has its own duties under Rule 4 — display of seller information, fair trade practice, grievance redressal — and is liable when those duties are breached. The seller has duties under Rule 5. The platform cannot escape by calling itself an "intermediary" once Rule 4 obligations are violated. So your complaint should name both the seller and the marketplace, with reliefs claimed jointly and severally. The District Consumer Commission decides the apportionment after hearing them.

What are "spurious goods" under the Consumer Protection Act, 2019?

Spurious goods are defined in Section 2(43) of the Consumer Protection Act, 2019 as goods which are falsely claimed to be genuine. A counterfeit branded phone, watch, charger, cosmetic, medicine or supplement sold as the original brand but actually fake is squarely within this definition. Once you allege spurious goods, you also unlock the related provisions — the manufacture or sale of spurious goods is an unfair trade practice under the Act, refusal to take it back is banned conduct under the e-commerce framework, and the CCPA can act against the seller and the platform.

What proof do I need before filing a counterfeit complaint?

Order page screenshot, the platform's invoice, payment proof, packaging photos, the product's serial or IMEI number, and most importantly a written rejection or non-genuineness letter from the brand's authorised service centre. Add every chat and email with the platform and the seller. The brand's rejection letter is the single strongest document — once you produce it, the burden practically shifts to the seller and the platform to explain how the fake reached your door. Without that letter, even a clearly fake product can become a long argument.

Can I file a consumer complaint if I bought from an online marketplace in another city?

Yes. The Consumer Protection Act, 2019 lets you file where the cause of action arose, where you reside or work, or where any of the opposite parties resides or works. For online purchases, the place where you received the product or where you paid from is usually accepted as the place where the cause of action arose. So you can file at your home city's District Consumer Commission. You do not have to travel to the seller's state or the marketplace's headquarters — that is one of the big advantages of the 2019 Act.

How long do I have to file a complaint about a fake product from an online marketplace?

Two years from the date of the cause of action under Section 69 of the Consumer Protection Act, 2019. The cause of action in a fake-product case usually arises on the date the platform refuses the refund, or on the date the brand's service centre confirms in writing that the product is not genuine — whichever is later. Keep the platform's final refusal email and the brand's rejection letter, both dated. If your two years are running out, file even an outline complaint within time and ask for permission to amend later.

Can I claim compensation beyond the price I paid for the fake product?

Yes. Before the District Consumer Commission you can claim refund with interest from the date of payment, replacement with a genuine product, compensation for mental harassment and time lost, compensation for any safety harm caused, and litigation costs. Where the counterfeit caused real injury — a fake charger that burnt, a fake cosmetic that caused a reaction, a fake medicine that worsened a condition — you can also pray for punitive damages. Where the platform's intermediary defence was unreasonable, commissions have sometimes added a separate sum for the buyer's mental harassment.

Should I also file an FIR against the seller?

Where the counterfeit goods caused harm, where the seller's address turns out to be fake, or where the same seller has repeatedly cheated buyers, yes — an FIR is sensible alongside the consumer complaint. The Indian Penal Code's cheating provisions apply, and where a registered trade mark is being copied, offences under the Trade Marks Act 1999 are added. The FIR helps the police trace the seller and seize stock, which the consumer commission cannot do. The two cases run on different tracks and do not block each other.

What if the marketplace's reply says "we are just an intermediary" — does that protect them?

Not by itself. The "intermediary" defence comes from the Information Technology Act, 2000 for online content, but the Consumer Protection (E-Commerce) Rules, 2020 lay down specific duties on marketplaces that go beyond a passive intermediary's role. Once the platform takes payment, displays the listing, sets the return policy, holds buyer-protection promises out, or uses its own warehouses, it crosses into the territory where its own deficiency in service is engaged. Many District Commissions have rejected the "only intermediary" defence on exactly this reasoning.

Do the E-Commerce Rules, 2020 cover both Indian and foreign marketplaces?

Yes — the rules apply to all e-commerce entities that systematically offer goods or services to consumers in India, irrespective of whether the entity is registered in India. Rule 4 requires entities offering goods or services to Indian consumers to have a registered office or designated person in India. So even a foreign-headquartered marketplace cannot say "we are a foreign company, file in our country" — Indian consumer law follows the Indian buyer. The complaint can still be filed before the District Consumer Commission where the buyer resides.

What is the difference between filing on consumerhelpline.gov.in and filing before a consumer commission?

Consumerhelpline.gov.in (the National Consumer Helpline) is a soft-touch grievance redressal portal — it forwards your complaint to the company, follows up, and many disputes settle there without any monetary order. The District Consumer Commission, on the other hand, is a quasi-judicial body — it passes binding orders for refund, compensation and costs, and the order is enforceable in execution. Use the helpline first for speed, but if it does not move the platform in a few weeks, escalate to the District Commission for binding relief.

My fake product was below ₹5,000 — is it still worth filing a case?

Yes, especially because the new Act has cut down on procedure-cost for low-value disputes. The District Consumer Commission entertains complaints up to ₹50 lakh, the procedure is meant to be informal, and there is no court fee for very low-value claims under the Rules. The compensation for mental harassment and time-loss usually exceeds the price of the fake product. Filing also creates a public record that the seller or the platform sold spurious goods — useful for the CCPA and future buyers.

Can I keep the fake product as evidence, or do I have to return it?

Keep it until your case is decided. Until the commission, the brand's service centre or the police asks you to deposit it, the physical product is your most important real evidence. Do not return it to the seller or to the platform before you have the brand's rejection letter and clear, dated photographs of every distinguishing feature. Once the case is filed, the commission can direct you to produce it at the hearing or to deposit it with the Registry. Returning a counterfeit before evidence is locked in often leaves the buyer with only screenshots and arguments.

For more articles on Indian law, visit the Pinaka Legal Blog.