TikTok Shop’s Trademark Challenges: The Rise of Counterfeits and Dupes

TikTok Shop is revolutionizing e-commerce, but its rapid growth has fueled a surge in counterfeit products and trademark-infringing dupes. This phenomenon has resulted in intellectual property violations and legal challenges for businesses, including those selling on the platform.

Attribution

TikTok on Phone by Olivier Bergermon

The TikTok app features a dedicated “Shop” tab with a search bar, known as TikTok Shop, an e-commerce extension that allows users to discover, browse, and purchase products without leaving the platform. Most shopping occurs when users come across products through curated videos delivered to the user. While hailed as a major innovation in social commerce for its seamless integration of online shopping and social media engagement, TikTok Shop has yet to attract major brands. Most top sellers are brands that developed a marketing strategy or went viral when the platform launched. Since content drives sales on TikTok, usually influencers are incentivized by a share of revenue to create content for these products. A 2024 Bloomberg report noted that TikTok aimed to expand its U.S. TikTok Shop business tenfold, reaching as much as $17.5 billion in the past year. However, despite its meteoric growth, TikTok Shop faces mounting criticism and scrutiny over the rise of counterfeit products. These concerns span legal, ethical, and public health domains, exposing serious vulnerabilities for both consumers and legitimate businesses.

One of the most pressing legal issues surrounding TikTok Shop is the proliferation of counterfeit products, which directly infringe on trademark law. Counterfeiters use TikTok’s vast marketplace to sell imitation products that bear similarity to trademarks of established brands, deceiving consumers and potentially damaging the reputation of legitimate businesses. Counterfeiters are incentivized by low barriers to entry, high-profit margins, and minimal enforcement risks—factors that social commerce platforms like TikTok unintentionally amplify. TikTok’s algorithm, which prioritizes viral, low-cost content, makes it an ideal space for counterfeiters and dupe marketers to thrive. To address this issue, TikTok Shop has introduced a trademark verification requirement for sellers, ensuring that brands must verify their trademarks before listing products on the app. According to TikTok’s official Trademark and Counterfeiting Policy, rights holders can file infringement complaints and request takedowns of counterfeit products. The platform enforces a three-strike rule for intellectual property violations, meaning that repeated infringement can lead to permanent account removal from TikTok Shop. Additionally, the TikTok Shop Academy provides guidelines on intellectual property compliance, educating sellers on how to avoid trademark violations. 

However, enforcement remains spotty and inconsistent, Many sellers circumvent these policies by operating under multiple burner accounts, rebranding frequently, or using subtle changes to packaging and product names to avoid detection. Investigative reporting by Wired and BuzzFeed has revealed how sellers exploit TikTok's algorithm and lax enforcement: they use fake identities, rotate through dozens of ephemeral accounts, and mislabel goods to slip through TikTok’s filters. These tactics not only overwhelm enforcement teams but also signal to bad actors that the consequences for rule-breaking are minimal. In addition to trademark violations, the sale of counterfeit products on TikTok Shop poses significant risks to consumer health and safety. Reports from the Guardian and BeautyMatter highlight instances of fake beauty products, such as skincare serums and cosmetics, causing adverse skin reactions including rashes, burns, and infections. These health and trust issues are exacerbated by TikTok’s underdeveloped dispute resolution and refund infrastructure. Consumers often struggle to secure refunds or file complaints due to vague policies, absent seller information, and delayed platform responses. Unlike traditional e-commerce platforms like Amazon or eBay, TikTok lacks a robust reputation system or standardized seller review process, making it difficult for buyers to assess risk before making a purchase.

Adding another layer of complexity to the platform’s intellectual property challenges is the explosive growth of “dupes”—lower-cost alternatives to high-end products that closely resemble the branding, design, and packaging of well-known trademarks. While some “dupes” may fall into a legally ambiguous area, others clearly cross the line into trademark infringement by misleading consumers about the product’s origin. Unlike counterfeits, which intentionally misrepresent themselves as authentic products from a well-known brand, dupes often mimic the aesthetic and functionality of a luxury product without directly copying brand names or logos. The popularity of dupe culture on TikTok has contributed to the increased visibility of imitation products. According to a report by Vogue Business, TikTok has become a central hub for “dupes,” particularly in the beauty and fashion industries. Some influencers openly advertise “dupes” while still displaying brand names and logos that belong to established companies, raising questions about whether such marketing constitutes trademark infringement or false advertising. While TikTok’s policies prohibit counterfeit sales, many “dupe” listings remain available, exploiting loopholes where sellers avoid direct trademark use while relying on visual similarities to well-known brands. 

Luxury brands are taking notice. In early 2024, TikTok and French luxury conglomerate LVMH announced a joint initiative to fight the sale of counterfeit and dupe products on the platform. This partnership represents a significant shift in how social commerce platforms may be pressured to collaborate with brand owners to improve enforcement tools and content moderation. According to Bloomberg and Fortune, the initiative will include developing anti-counterfeit technologies and improving seller verification procedures. These steps suggest that industry-led solutions may complement platform policies to protect brand equity and consumer trust.

TikTok Shop represents a groundbreaking shift in social commerce, merging viral content with seamless shopping. However, its rapid rise has exposed significant weaknesses in intellectual property enforcement and consumer protection. While the platform has taken steps to address these concerns, including policy reforms and brand partnerships, systemic vulnerabilities persist. The culture of quick, cheap, and viral consumption continues to challenge efforts at meaningful regulation. For businesses leveraging TikTok Shop, these realities present both opportunity and peril. On one hand, the platform offers direct-to-consumer sales at unprecedented scale and reach. On the other hand, companies must remain vigilant in protecting their intellectual property, monitoring the marketplace for infringing products, and maintaining brand integrity. Failing to do so could lead to brand dilution, lost revenue, and reputational harm. Legal risks abound—from third-party infringement and potential liability if businesses inadvertently promote or sell goods that violate trademark or safety regulations. As TikTok Shop evolves, businesses must adapt by actively policing their brand presence, educating consumers, and pursuing legal remedies when necessary to safeguard their products, reputation, and customers in the digital marketplace.