05 September 2024
In response to the growing popularity of blind box toys in malls and arcades, the Haidian District Market Supervision Bureau in Beijing has launched a crackdown on counterfeit products infringing on well-known trademarks. The operation, targeting unlicensed blind box toys, aims to regulate the burgeoning “blind box economy” and protect consumers from deceptive practices.
According to data from market research firm Statista, blind boxes held the largest share of China’s pop toy market in 2021, valued at Rmb9.7 billion (US$1.4 billion). Between 2017 and 2021, the market experienced an annual growth rate of nearly 130 percent. Statista projects that the sector in China will continue to expand, surpassing Rmb110 billion (US$15.5 billion) by 2026.
Blind boxes, with their exciting and mysterious contents behind similar packaging, have become a hit among young consumers who love the thrill of uncovering the unknown. However, their growing popularity has also led to an increase in counterfeit products featuring fake trademarks of well-known brands like Pop Mart, sparking consumer complaints and concerns.
These boxes aren’t just about toys – they tap into popular trends and fandoms, creating a sense of cultural and social connection to collectors.
“I spent a lot of money on a claw machine offering blind boxes with trademarks like ‘Kuaishou’ and ‘Moutai,’ assuming they were genuine. But when I opened them, the contents had nothing to do with the companies on the packaging. It’s clear I was misled,” Wang, a consumer who fell victim to one such scam, shared his experience at a local arcade.
In a recent enforcement action, the Haidian District Market Supervision Bureau, along with trademark holders including Kuaishou, conducted a thorough inspection of an arcade suspected of selling counterfeit blind boxes. During the operation, officials demanded the arcade’s business licence, trademark authorization documents and purchase receipts. The investigation revealed that the arcade’s machines contained over 300 blind boxes bearing fake trademarks, which were immediately confiscated.
“Trademark holders have exclusive rights to their registered trademarks, protected by law,” said an official from the bureau. “Selling counterfeit products not only misleads consumers but also violates the trademark law of China, carrying legal consequences ranging from fines to criminal prosecution.”
The crackdown serves as a stern warning to businesses involved in the sale of counterfeit goods. The bureau maintains a “zero tolerance” stance on the illegal sale of counterfeit goods. It also emphasized the importance of legal compliance, urging operators to strengthen their understanding of trademark laws and maintain proper records of transactions to avoid legal risks.
The Haidian District Market Supervision Bureau advised consumers to shop cautiously, considering factors such as price and quality to avoid falling prey to deceptive practices.
- Cathy Li
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