The counterfeit hunters came onto the scene due to a change in the Chinese consumer protection law, which has stipulated since 2013 that consumer victims of counterfeits will receive damage compensation. It can be for a sum of up to three times the goods’ purchase price, but is at least 500 yuan (ca. 70 euro). The compensation for food products can be significantly higher, up to ten times the purchase price.
One of the so-called professional counterfeit hunters, Ji Wanchang, told the New York Times for example that he combs shops and markets throughout the country, searching for and buying counterfeits in order to take the sellers to court – up to 100 times every year. He purportedly earns some 148,000 dollars (138,000 euro) a year this way. After deducting his expenses such as court costs, some 30,000 to 44,000 US dollars (28,000 – 41,000 euro) remain as profit, he claims.
Some experts expected such a development following the introduction of the new law, and are not surprised that “many ‘professional consumers’ therefore actively seek cases involving false or watered-down sales descriptions in order to make a profit,” as Yang Cui and Michael Tan from the business law firm Taylor Wessing in Shanghai explain.
Some counterfeit hunters are of the opinion that they are doing society a favour with their actions, they run, however, a significant risk in purchasing counterfeits and consistently suing sellers. Ji Wanchang, for example, reports that he has been attacked and beaten multiple times. Also, police previously detained him on suspicion of extortion.
The Chinese government is currently investigating whether counterfeit hunters abuse consumer protection regulations. A revision of the consumer protection law is under consideration.
