Does eBay Have 1.7 Million Counterfeit Products for Sale?

According to The Counterfeit Report, which tracks the sale of counterfeit or fake items on major e-commerce websites, eBay Inc.’s (NASDAQ: EBAY) sites have a huge number of these on sale that match the criteria. This begs the question whether the auction site has done enough to crack down on the practice.

There is a difference between counterfeit and fake items:

The eBay counterfeit products are trademarked replicas of real products, designed to take advantage of the superior value and reputation of the real product. The eBay fake products are products that do not even exist in the manufacturer’s product line, but are represented as the authentic branded product and bear the manufacturer’s registered trademark. Both are sold on eBay.

The Counterfeit Report actually buys a number of the products on eBay and reports them to the auction company.