In Depth

Auction Blocks: Criminals Unload Counterfeit and Stolen Goods on eBay

Criminals use online auctions as a place to unload stolen, diverted and counterfeit products. EBay does little to stop them, creating more work for CSOs. Here's what smart companies do.

By Sarah D. Scalet

Sellers are already complaining about abuses of the VeRO program. One Colorado-based seller named Karen Dudnikov, who sells quilts and other items made with properly licensed, trademarked fabrics, says she has had to take legal action to convince 17 rights-holders who "VeRO'd" her auctions to retract their takedowns. Her website, www.tabberone. com, now serves as an unofficial clearinghouse for eBay sellers who have had problems with VeRO.

Going forward, Limited Brands' Jones acknowledges that eBay faces a difficult balancing act. "EBay has to walk a fine line between treating a customer and a seller both with privacy and respect," he says, and with putting a stop to illegal activity. Whatever eBay does or does not do, the company has created a new marketplace, and someone has to police it.

For now, at least, the burden falls on companies, the best experts on their own products. It seems safe to say that people such as Hajdu will continue to spend their days immersed in a job that's both a dream and a nightmare: surfing the Internet and buying merchandise on online auction sites, and dealing with a constant and overwhelming onslaught of goods that mightor might notbe hurting their employers' profits and brand name.

Hajdu notes, somewhat jokingly, that he has great job security. "As the Internet grows, I think there's going to be a continual need for people to go out and police certain websites, whether it's on eBay or another site. It's the same old crimes that have been around for centuries. The Internet has just opened up a worldwide customer base."

Other stories by Sarah D. Scalet

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