french administration suspects wish of selling counterfeit products

A governmental body in France dedicated to protecting consumer interests and combating deceptive practices has launched an inquiry into Wish, the mobile shopping app that has recently submitted plans for an initial public offering. Despite reporting $1.9 billion in sales during 2019, the French authorities suspect that Wish may be offering items – including footwear and fragrances – that feature misleading imagery, falsely displaying the trademarks of well-known brands.

Beyond the issue of mislabeled goods, the investigation alleges that Wish creates a false impression of discounts. The platform is accused of advertising reductions of -70%, -80%, or even -90% on certain items, despite the stated original prices being entirely fabricated.

The agency conducting this investigation is the direction générale de la concurrence, de la consommation et de la répression des fraudes (DGCCRF), which operates under the authority of the French Ministry of the Economy and Finance. The findings of their investigation have been submitted to a court in Paris for review.

The court will now determine the validity of these claims. According to France’s digital minister, Cédric O, “The court has the power to request Wish’s attendance or accept a guilty plea. A resolution is anticipated within the next few days.”

Cédric O also drew attention to a specific instance on Twitter. “During the initial lockdown period, Wish was already noted for offering face coverings that did not adhere to required safety regulations. French consumers utilizing the app in search of affordable products should be aware of the high probability of encountering fraudulent offerings,” he posted.

Should Wish be found liable, the company could face penalties amounting to as much as 10% of its yearly revenue generated within France. A key aspect of the case will be determining Wish’s accountability for products sold by independent vendors on its platform.

The timing of this legal action is noteworthy, as the forthcoming Digital Services Act in Europe is expected to significantly revise the e-commerce directive established in 2000. While much attention is focused on content moderation, the Digital Services Act is also intended to address the issue of counterfeit products, the responsibilities of online marketplaces, and related concerns.