October 28, 2020

Spooky season is coming…

Halloween is approaching and as we all know, this holiday attracts various evil spirits both online and offline.

Shortly thereafter, we are entering November, which means high season for all e-commerce companies, with major events such as China’s Singles’ Day (the world’s largest one-day sale), Thanksgiving, Black Friday and Cyber Monday. This holiday shopping season has become increasingly important within eCommerce, and is often referred to as the “Golden Quarter”. This attracts attention, and many retailers are unprepared for the rise in issues relating to cybersecurity, counterfeits and digital infringements – ultimately leading to brand devaluation, bad-will and unwanted costs.

Let us talk some numbers. According to Corsearch, $38 Billion was spent during Singles’ Day 2019, $1 Trillion was spent between Thanksgiving and Cyber Monday, and the projected eCommerce increase in 2020 is 13.9 %.

On the other hand, $509 Billion is lost annually to counterfeiting and piracy. The estimated losses between Thanksgiving and Cyber Monday 2019 was $33 Billion. 40 % of all goods purchased online from third-party vendors may be counterfeit, and there is a 25% increase in infringements noticed by Corsearch analysts between October and December.

To help you avoid brand abuse and bad-will, and to help you gain control of your online brand presence, Niclas Jonsson, one of our Digital Brand experts, and Jennifer Godorn, Attorney at Law, have some advice on simple measures that eCommerce companies can take.

  • Make sure to monitor your brand on online marketplaces such as Alibaba and Amazon. It does not only help you identify and fight counterfeit and brand abuse, but can also be used to better understand your online brand presence, and how your brand is being communicated by e.g. resellers and marketing partners.
  • Monitor if anyone registers or publishes domain names or websites that are identical or confusingly similar to your primary domain and/or eCommerce website, and enable functionality that prevents spoofed emails from being sent from your domain names. The earlier you become aware of the problem, the lesser risk for loss of sales and unsatisfied consumers.
  • Make sure to review how you communicate online in terms of your domain names and websites, and make it easy for consumers to identify the authenticity – e.g. by SSL with Extended Validation – enabling the visitor to easily validate that they are not visiting a fraudulent copy of your website. Also, ensure that your company name, terms & conditions and other trust aspects are easily available on your eCommerce website, and that you comply with local laws and regulations for eCommerce. Professional and well-detailed terms & conditions will not only gain trust among your consumers, but also increase sales, and minimize the risk for fines.

If you are a consumer, make sure to validate the website you are shopping from. Measurements you can take include double-checking the spelling of the domain name, ensure that a padlock is visible in the browser address bar, and research the authenticity of the website, e.g. by reviewing the company data and terms & conditions. If you cannot find any or if something smells fishy – buy somewhere else!

Are you in need for brand monitoring services, technical solutions or legal assistance related to eCommerce? Contact one of our experts today – we are here to help!

  • Associate Attorney
  • Gothenburg
  • Regional Manager Digital Brand Denmark, Germany and Norway
  • Copenhagen
  • Partner Regional Manager, Digital Brand, Sweden East & North
  • Stockholm
  • Senior Digital Brand Consultant
  • Copenhagen
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