From November 2023 to January 2024, defendants Jin, Li, and Yi were partners in the operation of Qing's Company. They were aware that a Shanghai-based internet technology company was procuring renowned brand cosmetics such as L'Oréal and Estée Lauder for supply to Freshippo, Alibaba Group's grocery and fresh goods retail chain.
Exploiting this information, they engaged in the sale of counterfeit cosmetics bearing the marks of these prestigious brands to the technology company at prices significantly below market value. Subsequently, the buyer redistributed these counterfeit goods through its affiliated entity, making them available at various Freshippo locations across multiple regions.
Audits revealed that the trio had managed to sell over 3.2 million yuan ($442,903.72) in counterfeit L'Oréal and Estée Lauder cosmetics through Qing's Company.
In response to their illicit activities, the Shanghai Pudong New Area People's Court issued judgments against each individual involved in the scheme. Jin was sentenced to five years in prison and fined 850,000 yuan for the crime of selling counterfeit goods bearing registered trademarks. Yi received a four-year prison term along with a 200,000-yuan fine, while Li was sentenced to four years and two months in prison and fined 650,000 yuan, all on the same charge of selling counterfeit registered trademark goods.
The effective resolution of this case showcases the resolve and astuteness of China's judicial system in combating intellectual property offenses within livelihood-related sectors. It serves as a model for ensuring compliance within the beauty industry's supply chain.
