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TMCNet:  New Study from Red Points Reveals 54 Percent of U.S. Adults Have Reported Buying Counterfeit Toys and Games

[November 19, 2020]

New Study from Red Points Reveals 54 Percent of U.S. Adults Have Reported Buying Counterfeit Toys and Games

Today, brand intelligence leader, Red Points, released a new national study outlining how American adults are planning to shop for toys and games this holiday season and the new risks posed by changing shopping trends. The research, conducted in October, reveals that increased online shopping contributes to the proliferation of counterfeit toys and games - posing significant safety and health hazards for children and families.

While the holidays are invariably an expensive time for many families, in 2020, Americans are facing unprecedented budgetary constraints during one of the most economically challenging years in recent history. As a result, consumers are more likely to shop around for deals, which in turn, increases the chance of falling victim to counterfeiters. With the holiday shopping season in full swing, it is more crucial than ever that brands and retailers carefully monitor their online presence and ensure they have the necessary measures in place to safeguard both their reputation and customers.

"Shoppers are faced with more online options than ever before, making it increasingly difficult to decipher authentic toys and games from fakes," said Daniel Shapiro, Red Points' vice president of strategic partnerships and brand relationships. "In cases where counterfeit toys and games harm children, brands involved suffer a multitude of negative consequences, including loss of trust, bad press and losing revenue to counterfeiters. Brands need to implement ongoing precautions to curb counterfeits to remain in good faith with shoppers."

"Counterfeits destroyed trust with some of our valued distributors and consumers," said Grace Paik, Chief Amazing Officer of popular design and doodle tools brand for children, Jaq Jaq Bird. "As we're expecting an increase in online sales this holiday season, we're making it a priority to safeguardour consumers and distributors. Protecting our brand is not only crucial for our business, but for parents and children who use our products."


"Counterfeit products and rogue sellers who abuse online marketplaces and deceive shoppers pose a serious safety threat to children," said Steve Pasierb, President & CEO of The Toy Association. "Stopping these products and sellers continue to be a top advocacy and legislative priority of The Toy Association and our toy company members. Counterfeits and imitation products fall outside our nation's world-class safety system that all legitimate U.S. toy companies comply with, whether their products are sold in retail stores or online."

The outcomes from Red Points' national survey outline shoppers spending habits and perspective on purchasing toys and games this year:

  • 46 percent of shoppers plan to do more than three-fourths of their holiday shopping for toys and games online.
  • 55 percent of shoppers plan to shop online for toys and games on Marketplace sites this year, with brands' websites, eCommerce and social media following in popularity.
  • Price is the most important factor for respondents when it comes to purchasing toys and games, followed by reviews and ratings, brand reputation and product popularity.

When it comes to counterfeits, 47 percent of shoppers are more concerned about buying counterfeit toys and games specifically than other products. Brands are at risk of losing trust with consumers if they do not address counterfeiting issues, as indicated by the following findings:

  • 54 percent of shoppers believe they have purchased a counterfeit toy or game online.
  • 66 percent of respondents said brands need to do more to protect customers.
  • 44 percent of respondents would not buy from brands again after purchasing counterfeit.
  • 31 percent of respondents would not trust brands after purchasing counterfeits again.
  • Of those who bought fakes, 21 percent suspected it was a counterfeit, 19 percent knew it was a counterfeit and 13 percent didn't know.

Red Points' survey will be featured in a webinar hosted by Vice President of Strategic Partnerships and Brand Relationships Daniel Shapiro and Head of Solution Engineering Oliver Bolton on Thursday, December 3 at 2 pm ET. To join the webinar, Christmas 2020: How Toy Brands Can Mitigate the Impact of Counterfeits, please register here.

About Red Points

Red Points is the world's first brand intelligence platform. By combining some online brand protection, copyright enforcement, and distributor monitoring capabilities, Red Points provides companies full visibility into brands' presence online. Over 700 brands rely on Red Points to fight fakes, piracy and distribution abuse online, allowing them to maintain control, improve their brand value and increase revenues. With offices in New York, Barcelona, Beijing and Salt Lake City, Red Points has transformed an industry traditionally led by intellectual property lawyers and service-focused companies into a scalable, cost-effective technology solution. For more information on Red Points and its solutions, visit www.redpoints.com


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