Remedies for buying counterfeits at online auctions?

What the Law Says

Japanese law provides both civil remedies for buyers deceived by counterfeit goods and criminal penalties for sellers who knowingly trade counterfeits.

Under the Civil Code, if a buyer purchases counterfeit goods believing them to be genuine, this constitutes a 'mistake as to the nature of the object' — a ground for cancellation of the contract. The buyer must exercise this right within 10 days of discovering the mistake.

The Unfair Competition Prevention Act (UCPA) criminalizes the sale of counterfeit goods that imitate another person's well-known trademark or trade name. Sellers who knowingly distribute such goods face up to 5 years’ imprisonment or a fine of up to ¥5 million — or both.

Online auction platforms may also bear responsibility if they fail to take reasonable measures to prevent counterfeit sales, depending on their role and level of involvement under the Act on Specified Commercial Transactions.

Statutory Text

A party may cancel a juristic act if it was made as a result of a mistake as to the nature of the object.

— Civil Code, s. 541 — Cancellation due to mistake

Statutory Text

‘Unfair competition’ means… (xi) use of a mark which is identical to, or similar to, another person’s well-known indication of goods or business, in connection with goods or business which are identical to, or similar to, those indicated by such well-known indication, thereby causing confusion with the goods or business of such person.

— Unfair Competition Prevention Act, s. 2(1)(xi) — Definition of unfair competition

What to Do

Sources