This is for you. A total of 17 euros. The product costs 14 euros and XNUMX euros for delivery, says the courier and hands over a neatly packed package. The package contains a red box containing the product ordered via Instagram - a copy of the "Michael Kors" brand watch.
The watch was ordered by the author of this text for research purposes, and the price indicates that the product is not original, although the seller did not indicate that it was a counterfeit product. According to the manufacturer's website, the price of the original is around 300 euros.
In addition, the quality of the product is lower, and the packaging is worse (the pad on which the watch is placed is poorly sewn, the box does not have the brand mark printed on it...). The online seller from whom the product was ordered also offers other copies of well-known brands, such as "Rolex", which at legal sellers costs several tens of thousands of euros.
Copies of original watches, as well as other products such as glasses, bags, wallets and perfumes, are offered by a significant number of sellers on social networks who each have several thousand followers. This indicates that the global pandemic of the corona virus, which has accelerated the development of online trade, has led to the flourishing of illegal sales of various products, including counterfeit ones.
This happened especially in less regulated markets, such as Montenegrin. The "catch" of the Market Inspection of Montenegro in the first three months of this year is equal to the results of the fight against illegal online trade from the whole of last year.
During the year 2022 and in the first three months of this year, the market inspection confiscated goods sold online, worth about 40.000 euros, for which there was no evidence of procurement or it was counterfeit, the main market inspection told the Center for Investigative Journalism of Montenegro (CIN-CG) inspector Marina Radulović.
"During the entire year 2022, goods worth more than 20.000 euros were confiscated. From January 1 to March 20 this year, in an action to control the movement of goods through courier services, goods without proof of purchase and counterfeit goods worth 19.437 euros were seized (vests, tracksuits, hoodies, sneakers, sets, pajamas, teas, sewing machines, bracelets, watches, hair curlers, boots, bedding)", said Radulović.
According to the data submitted to CIN-CG, the Revenue and Customs Administration terminated 17 customs procedures in the first three months of this year due to suspected infringement of intellectual property rights and temporarily detained 51.412 pieces of goods at border crossings, which is 1,5 times more than in the whole of 2022. . years.
"The largest amount of clothing was retained, in the amount of 44.357 pieces, followed by sports shoes, other shoes, bags, clothing accessories, jewelry, etc. Most often, these are mixed shipments, where one shipment contains goods of various protected trademarks (brands) - 'Hugo Boss', 'Nike', 'Adidas', 'Armani', 'US Polo', 'Tommy Hilfiger', ' Lacoste', 'Moncler', 'Zara', 'Calvin Klein', 'Dior', 'Chanel' and others", said the Management.
The Law on Trademarks prescribes fines from EUR 500 to EUR 20.000 if a trademark (brand) is placed on goods without permission, such goods are placed on the market, or goods under the trademark are imported or exported. The goods are confiscated and destroyed, regardless of whether they are the property of the offender.
In addition to illegal trade and counterfeiting (selling copies of originals of well-known brands), basic consumer rights are not respected. Consumers cannot return goods ordered via social networks to most sellers. Also, it often happens that the quality of the product does not match the one shown in the photo, or that the finished size is significantly smaller or larger than requested, if it is a wardrobe.
A broken toy, glasses with broken lenses, a suit that's too small
Emina from Podgorica (identity known to the editorial staff) told CIN-CG that she received a broken toy for which she paid 17 euros with delivery.
"I ordered a toy for a child through social networks - a talking cat, actually repeating what it is told. However, none of that. I paid 14 euros for the toy plus three euros for shipping and when it arrived, the toy didn't work. I contacted the seller, who told me that I did not order the toy from them", says Emina for CIN-CG.
She also submitted to the CIN-CG editors the correspondence she had with the seller on Facebook. She says that she did not report the seller, because she does not know who is behind the Facebook profile, and she does not trust the institutions of the state.
Jelena from Danilovgrad (identity known to the editorial staff) had a different experience.
She told CIN-CG that she ordered sunglasses on Instagram that had a mistake (the glass was wrong), even though the seller claimed they were original.
"Nevertheless, in a few days they sent me a new product and now everything is fine," she said.
Tanya from Nikšić (identity known to the editorial staff) explained to CIN-CG that she ordered pants and a jacket through Instagram, but that the size did not suit her, so she tried to exchange them.
"The size was not written on the goods, and when I asked the seller, he replied that it was an Italian number. I was not told that when I ordered the goods, and it is known that Italian numbers are smaller than other European ones, which are valid in our country. The seller offered to exchange the goods, but later changed his mind and didn't call again," said Tanja.
When asked why she did not report the seller to the inspection, she answered that she did not do it, because she was aware that she was ordering from an illegal seller.
Avoid illegal online traders
Expert for trade in services at the Secretariat of the Central European Free Trade Agreement (CEFTA), Zdravko Ilić says to avoid illegal shops on the Internet.
"Illegal shops are harmful in many ways. First, you may find yourself in trouble with the law. After that, there is a big risk that you will not get the product or service, especially at the expected price and required quality", warned Ilić for CIN-CG.
He explains that illegal traders usually do not feel they have a legal obligation or desire to build long-term relationships with customers.
“And finally, one bad experience with online shopping can discourage you from trying again. That's a shame because the internet is where the best selection of goods and services is. And with that, let's not forget, the Internet is a key development opportunity for young people who don't want to leave the country, but to stay and start and develop their own businesses. However, in order for them to have access to the full capacity of the digital market, the development of electronic commerce is not only a national task, but also a regional and European one, which is why it is one of our key CEFTA priorities," said this expert on trade in services.
The signatories of CEFTA, the countries of Southeast Europe, committed to establishing a regional economic area based on compliance with the EU and with the aim of reducing trade and production costs by eliminating barriers to market access.
The Center for Consumer Protection of Montenegro (CEZAP) says that the majority of online sellers from social networks do not have a registered business activity and behind these profiles is a natural person, which creates a formal obstacle to the application of the Law on Consumer Protection in the event of a disputed purchase. According to the Law on Consumer Protection, the seller is a legal entity, and the buyer is a natural person.
"Certainly all these phenomena should be reported to the Directorate for Inspection Affairs because it is a gray economy", they told CIN-CG from CEZAP.
Sales on social networks are organized from houses and apartments, goods are sent by couriers to whom money is given "in hand". In addition to the price of the product, delivery is paid, usually three euros.
The Chief Market Inspector warns that the possibilities of the Market Inspection in the fight against illegal online business are limited. The inspection cannot carry out surveillance in private houses and apartments without a court order, she warns. Also, profiles on social networks can be created with fictitious data.
She said that the Market Inspection, in cooperation with the Police Directorate, carries out increased monitoring of the circulation of goods through courier services. "When it comes to inspection inspections based on the initiatives of traders who are registered to sell goods via the Internet, we witness that there are very few of them, which is a good indicator that the traders have harmonized their business with the law", said Marina Radulović.
According to the data of the Administration of Revenue and Customs, submitted to CIN-CG, there are 335 companies registered for retail trade through mail or via the Internet in Montenegro.
In four years, more than 200 controls due to applications
Since the beginning of 2019, the market inspection has carried out over 200 controls in the online trade sector. By controlling the circulation of goods via courier services, market inspectors found counterfeit goods in 13 vehicles and goods without proof of purchase, Radulović presented statistical data.
"Since the beginning of the year, the Market Inspection has received 11 reports regarding irregularities when ordering products from websites on social networks such as Instagram and Facebook or registered online stores. Irregularities refer to complaints about watches, boots, perfumes, make-up, wardrobes, faucets, shavers... In consumer reports, it was claimed that they were deceived because the product they ordered was not the same as the product they saw in the photos", specified the head market inspector.ž
She added that consumers also reported delivery delays, as well as the fact that the price the courier asks for when delivering the ordered product is higher than the price indicated when ordering.
"For the identified irregularities, and after the contact of the inspector with the administrators of the websites of the registered online stores, in two cases the money was refunded", said Radulović.
The Center for Consumer Protection (CEZAP) prepared a Guide for online shopping in which they point out that the Law on Consumer Protection applies to goods or services ordered over the Internet. "On the Internet, your consumer rights apply, just as they apply when you make a purchase in a shopping mall or a nearby supermarket. It is important that you know that the Consumer Protection Act applies when you order goods from a domestic e-retailer, from a domestic webshop, but not when you order goods from foreign websites or online platforms (Amazon, AliExpress, Ebay, etc.)", they warn. from CEZAP.
They explain that consumer fraud most often occurs when purchasing via social networks, and consumers are very often not even aware that they are buying goods from someone who is not registered to trade, who will not give them an invoice and who they will not be able to contact if they are dissatisfied with the purchase. product or service and want to return or advertise it.
"Therefore, it is necessary to check whether it is a registered trader, which you can do relatively easily by requiring the seller to provide you with personal information or look for it on the website/webshop, which can be checked on the website of the Central Registry ", it is stated in the CEZAP guide.
According to the Law, the trader is obliged to inform the consumer, among other things, about the basic properties of the goods or services to the extent that it is appropriate, then about the name and registered office, telephone number, selling price of the goods or services and the e-mail address, if any.
If the nature of the goods or services does not allow the price to be calculated in advance, the trader is obliged to inform the consumer of the method of price calculation and, if necessary, of the costs of transport, delivery or postal services, or of the possibility of charging those costs if they cannot be calculated in advance .
The Law on Consumer Protection states that in the sales contract, unless he has offered to take over the goods that the consumer returns, the trader is obliged to return the amount paid after the return of the goods, i.e. after providing evidence that the consumer sent the goods to the trader.
Consumers can check the credibility of an online seller
The merchant is obliged to return the amount paid in the means of payment and in the manner in which the goods were paid for, unless the buyer expressly accepts another means of payment. The condition is that the buyer is not obliged to pay additional costs for the return.
Zdravko Ilić advises consumers to check whether the website meets the minimum requirements stipulated by European regulations, the CEFTA Decision and domestic regulations, and it refers to what the online store must have from the seller's data (name, address, contact, registration number, etc.) ).
"If that legal minimum is not met, the alarm should go off. These rules also apply to social networks," Ilić said.
He recommends Europol's golden rules for digital shopping, which can be found on the EU law enforcement agency's website.
Improve consumer protection by applying European standards
Zdravko Ilić said that in its Action Plan for the development of electronic commerce, CEFTA has foreseen several activities aimed at establishing trust between digital buyers and sellers.
"First of all, it is necessary to improve and equalize consumer protection by applying European standards such as the right to return purchased goods within 14 days. These rules are part of the CEFTA Decision on the Facilitation of Electronic Commerce which has been agreed and is expected to be adopted this year. The second, less official part is about supporting the customer to recognize trusted digital stores, as well as online payment methods," he explained.
He said in Europe there are signs of trust that are developing at the level of business associations. We are currently working to support the development of special associations for electronic commerce that could be the bearers of such activities.
An online retailer does not need space or workers
On the regional platform ecommerce4all.eu, which is a resource and information center on key aspects of e-commerce for all CEFTA markets, it is explained in detail how to register for online commerce:
"In order to start working and conducting e-commerce, the online seller (legal entity) must first be registered as a company in the Central Register of Business Entities of Montenegro (CRPS). Those companies that are already registered in the Central Register and operate as 'offline' sellers and want to expand the way of selling goods and services, do not have to re-register or complete the registration, but only report their online activity to the Directorate for Inspection Affairs, i.e. the Department for Market inspection".
According to the regulations, physical stores must meet certain minimum technical conditions and standards of the premises in order for the seller to be able to do business through it. Owning and operating an online store requires no physical space at all. Also, an online store can theoretically work with only one employee and thus fulfill the legal requirements, regardless of the fact that the working hours are 24/7, because most of the processes are automated and do not require people to work in shifts.
In Serbia, they publish a black list of online retailers
The National Consumer Organization of Serbia (NOPS) publishes a black list of online merchants who do not conduct this type of trade in accordance with laws, good trade practices, or even ethical norms.
There are currently 153 blacklisted Facebook merchants, while there are 287 on Instagram.
NOPS has been publishing the black list since 2020.
In the states of the region (Serbia, Croatia), as previously reported by their media, there were cases where consumers received stones and bricks in packages instead of a mobile phone or some other electronic device. It is not known that such a thing happened in Montenegro.
The reported value is dozens of times lower than the selling price of the goods
In the first three months of this year, the Revenue and Customs Administration seized the most counterfeit goods at the competent customs offices of Terminal Podgorica and Božaj (border crossing).
In 2022, the administration kept 32.948 pieces of goods, in 2021, 30.635 pieces, and in 2020, 15.345 pieces of goods.
When asked what the value of the seized goods is, they answered that this data cannot be given because the reported value in the shipment is dozens of times lower than the price at which these goods are sold, i.e. several times lower than the retail price of the original goods.
They explain that the customs authority takes the value of the destroyed goods for data on the value of these goods, i.e. the retail price of the original goods.
"For example, the reported invoice value in a mixed shipment that was retained in March 2023 in the amount of 5.504 pieces of different types of goods of Turkish origin, various protected trademarks (brands) is 4.119,4 euros, and its estimated value is more than 25.000 euros . The information we received from the companies (right holders-owners of the brand) who confirmed that the goods from this shipment were counterfeit and submitted requests for their destruction, is that the value is many times higher. For example, for a pair of shoes from this consignment, the invoice value is two euros, and the retail price of the original goods of that well-known brand is 1.690 euros," said the Administration.
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