To mark World Consumer Rights Day every year, China routinely exposes fraudulent transactions and business malpractices on March 15. This year, the spotlight was on people who knowingly purchase fake goods so that they can make a killing by seeking compensation.
This phenomenon has become an industry by itself, with a history of over two decades. The trend started in 1995 when a buyer, Wang Hai, sought to purchase two headsets at a shopping mall in Beijing. Wang realized they were counterfeits but still went ahead and bought another 10. He then managed to get double what he paid from the shopping mall under the Consumer Rights Protection Law.
Today Wang owns four companies in Beijing, Tianjin, Nanjing and Shenzhen, all of them specializing in turning a profit by extracting compensation from sellers of counterfeit goods. In 2014, the companies made a profit of over 4 million yuan ($617,000). The “industry” now has a large number of people working to unearth counterfeit products so that they can claim compensation and make a neat profit.
Though they expose the fraudulent practices of some industry giants, the group, however, is also accused of blackmailing businesses. Public opinion on these profit-driven “consumer rights activists” is divided. Their supporters say they have the professional knowledge and experience needed to obtain compensation for fake goods, thereby safeguarding consumers’ rights and keeping the market in order.
But their critics say the government should ban these professionals who are misusing the Consumer Rights Protection Law for financial gains. What they do goes against the principles of integrity and honesty. Trade unions and nonprofit organizations are the more appropriate entities to help protect consumers’ rights.
Pro
Long Minfei guancha.gmw.cn
Profit-seeking fake goods investigators are not perfect but they deserve our understanding and support as we can learn something about how to protect our legal rights as consumers. Woodpeckers eat insects that are harmful to trees not to protect the forest but to survive themselves. But that doesn’t stop people from praising the birds. Similarly, we should not be too critical of people who live on purchasing fake goods and then claim compensation as the outcome of their work actually benefits our society.
The newly amended Consumer Rights Protection Law has increased the compensation amount substantially, meaning a larger profit for these people. It is likely that more and more people will work in this trade. I think it is a good thing.
There is still a long way to go before every consumer becomes aware of his/her legal rights when they get into disputes. Under this circumstance, our society needs these profit-seeking consumer rights advocates. However, we cannot depend on them solely. The government should make greater efforts to root out counterfeit goods. When whole society works unitedly, harmful businesses producing or selling fake products would be fully exposed and eradicated. CA
Con
Zhu Yonghua www.youth.cn
These profit-seeking fake goods investigators acquire financial compensation by setting traps and using skillful tactics. As Wang Hai, who started the business in China, said, the fight against counterfeit products has nothing to do with justice. It is a good act only because you can make money.
Obviously, this group of people is taking advantage of the Consumer Rights Protection Law to force fake goods manufacturers and sellers to pay them. Businesses will even bribe the so-called consumer activists to cut them some slack. Besides, these investigators go chasing after another target as soon as they get compensation from one, oblivious to whether the manufacturer or seller is still continuing with illegal activities.
In my opinion, the conduct of profit-seeking fake goods investigators goes against both the modern values our society advocates and the traditional values our nation has long held. Purchasing products that you know are fake and then claiming compensation as a victim is not a noble or dignified deed. Admittedly, cheating consumers by manufacturing or selling fake goods is against the law. But we should not support or advocate these so-called consumer activists’ way of “protecting” consumers’ legal rights.
What the profit-seeking investigators do is fundamentally different from the government’s efforts to crack down on fake goods. We cannot regard it as a supplement as it will not bring any positive results but will only undermine the government’s authority. Tolerating such people will jeopardize the value system of integrity and honesty. CA
Pro
Zu Changyun Media commentator
Some people say that these fake goods investigators are profitdriven or try to blackmail sellers or manufacturers after buying goods they know to be fake. But we cannot deny that what they do indeed deters manufacturers and sellers from producing or selling fake goods. Their work also helps increase ordinary con-sumers’ awareness of their legal rights.
People who live on purchasing counterfeit goods and going after the manufacturers and sellers for compensation are complementing the government’s efforts in cracking down on manufacturing and selling of fake goods. No matter what intentions they have, their efforts help regulate the market. As long as they conduct their business within the framework of the law, we should support them for the outcome their efforts produce. CA
Con
Fan Jun
www.southcn.com
Since Wang Hai became China’s first profit-seeking fake goods investigator in 1995, more and more people have joined the business. The reason is that this is a profitable business in their eyes.
The motive of these so-called consumer activists is to make a profit. This is evident from their general practice of trying to privately settle disputes with sellers or manufacturers of fake goods before filing lawsuits. Some people call them parasites who thrive on illegal commercial activities. Their profit-driven motive is obvious in spite of their seemingly rightful explanation that they are looking for justice.
Spurred by self-interest, people’s greed will become unrestrained. Consumers’ awareness of protecting their rights through legal means is increasing today and the channels to do so are also getting smoother. Therefore, profit-seeking fake goods investigators are not necessary any more. Besides, the government agencies in charge should deal with consumers’ complaints and crack down on counterfeit goods more effectively so that the market is shipshape. In this way, profit-seeking fake goods investigators will no longer be able to profit from fake goods. CA
Pro
Jiang Yongxing Jinhua Daily
Investigating fake goods and going after their sellers for compensation requires professional knowledge and experience which not everybody possesses. Nowadays, counterfeit goods are so well made that ordinary consumers cannot make out they are fakes. If people who unwittingly bought fake products want to exercise their rights as consumers, they have to know the consumers’ rights law. In addition, they have to be prepared, both physically and mentally, to embark on a time- and energy-consuming challenge of negotiating with the parties involved - sell-ers, manufactures and even government agencies – to win compensation. It is very difficult for an ordinary consumer to achieve this.
Ordinary consumers resort to claiming compensation only when their individual rights are infringed on. But profit-seeking fake goods investigators’ business is to crack down on spurious goods. They take the initiative to learn ways and research to improve what they do for better results. Although they are profit-driven, their efforts help cleanse the market of fake goods and benefit the consumer. CA
Con
Zhang Xiliu guancha.gmw.cn
We should not overestimate the effectiveness of what the so-called consumer rights advocates do.
This group of people buy goods that they know are counterfeit just for financial gains. This is a twisted mindset and should not be accepted as it overrides the original reason behind claiming compensation: upholding justice.
Establishing firms to run this business as an industry further exposes these people’s selfishness and profit-driven motives. These companies are just making a profit under the disguise of working as activists. Once claiming compensation becomes a business, those so-called activists will try to make financial gains by hook or by crook. In the process, they will inevitably jeopardize the market order and cause more complicated disputes and social conflicts.
The rampant growth of profit-seeking fake goods investigation industry shows that non-profit organizations didn’t play their due role in safeguarding consumers’ legal rights. Instead of encouraging these so-called consumer rights advocates, non-profit organizations should assume their due responsibility in this regard. CA