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Counterfeit cosmetics cost EU brands €3 billion a year. What brand owners can do about it

The EUIPO estimates that counterfeits cost the EU cosmetics and personal care sector €3 billion a year. Here is how counterfeits reach marketplaces and the five steps that actually protect a beauty brand.

Trademark certificate with seal, fountain pen and loupe on a navy desk

Counterfeit cosmetics are not a niche problem. According to the European Union Intellectual Property Office (EUIPO), fake products cost the EU cosmetics and personal care sector around €3 billion in lost sales every year, equal to 4.8% of the sector’s revenue and roughly 32,000 jobs.

For an individual brand, the damage goes beyond lost revenue. A counterfeit serum or cream can contain unknown ingredients, cause skin reactions and end up as a one-star review on your own product page. Retailers notice falling marketplace prices and start asking questions. And every euro you spend on advertising risks sending customers to someone else’s offer.

How counterfeits reach the marketplaces

Most counterfeit beauty products are sold through the same channels as the real ones. On marketplaces where several sellers can offer the same product on one listing, a fake can sit right next to the genuine article, sometimes with better delivery times and a lower price. Typical warning signs are:

  • prices well below your lowest wholesale price;
  • reviews that mention a different smell, texture, colour or a skin reaction;
  • new sellers with large stock of a product you never supplied to them;
  • packaging with wrong fonts, missing batch codes or no EU labelling;
  • copycat listings that use your brand name, images or claims.

Five steps that actually protect a beauty brand

1. Secure your rights

Everything starts with a trademark. An EU trademark from the EUIPO covers all member states and is the key to Amazon Brand Registry and to most marketplace reporting tools. Selling in the US requires a separate USPTO filing.

2. Take control of your listings

With Brand Registry you control titles, images and claims on your Amazon listings and get access to the Report a Violation tool. Other marketplaces offer similar brand programmes or notice procedures.

3. Monitor every day

Counterfeiters move fast. Daily monitoring of sellers, prices, content changes and reviews catches problems while they are still small.

4. Document and enforce

A report backed by a test purchase and a comparison with your genuine product is far more effective than a complaint. When marketplace procedures are not enough, IP lawyers can send warning letters, file customs applications so suspect goods are detained at the EU border, or start court proceedings.

5. Give demand a real home

Takedowns only last if shoppers can easily find the real product. One official seller per marketplace, with complete content, reliable stock and fast delivery, is the most durable protection there is.

Protection is not a one-off clean-up. It is a combination of legal rights, daily attention and a strong official offer.

Where to start

If you are not sure what is happening with your brand online, start with an overview: who sells it, at what price, and with which listings. KOD offers a free brand check for European beauty brands on Amazon, bol, Kaufland and Galaxus.

Source: EUIPO, Economic impact of counterfeiting in the clothing, cosmetics and toy sectors in the EU (2024), based on data for 2018–2021. This article is general information and not legal advice.