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The challenge of counterfeit merchandise through third-party sellers

HOUSTON – Professional makeup artist Lisa Pelayo knows beauty. With more than 15 years of experience working with high-end cosmetics, the Houston-based artist says she can often spot a fake before a product is ever applied.

“I’m pretty careful when I do my purchases,” Pelayo said during a recent interview with 2 Investigates at her studio.

That caution comes from seeing an increase in counterfeit beauty products sold through major online platforms, often by third-party sellers.

“If you’re on Amazon, I would make sure that it is coming from the store directly,” Pelayo said.

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Pelayo says she takes those steps to avoid counterfeit products, sometimes referred to as “dupes,” a nickname commonly used for duplicate or imitation items.

For those who work in retail and enforcement, the terminology doesn’t matter.

“Dupes, counterfeits, fakes — whatever you want to call it — it’s a very big problem,” said Candice Uzoigwe with the International AntiCounterfeiting Coalition.

A growing issue in Houston

In November, U.S. Customs and Border Protection announced that the Houston-Galveston Seaport seized counterfeit goods with a manufacturer’s suggested retail value of more than $187 million during fiscal year 2025.

“When I was active at HPD, Houston was number three in the country as far as counterfeit goods,” said retired Houston Police Captain Ron Borza.

Borza spent years leading a unit focused on counterfeit crimes involving fake watches, jewelry, perfume, and athletic shoes. He says counterfeit merchandise is increasingly being sold online through third-party sellers operating under the umbrella of well-known retailers.

“Counterfeiters make a lot of money fooling people into buying their products,” Uzoigwe said.

Both Uzoigwe and Borza acknowledge that with the sheer volume of products and sellers on large e-commerce platforms, counterfeit items can sometimes slip through.

“Sometimes that happens, and that is a problem a lot of e-commerce companies face,” Uzoigwe said.

Third-party listings raise concerns

2 Investigates reviewed listings on Walmart.com and found several Le Labo fragrance products sold by third-party sellers. At first glance, the listings appear similar to items sold directly by Walmart, making it difficult for consumers to distinguish who is actually selling the product.

Le Labo, a high-end fragrance brand, primarily sells through its own brick-and-mortar stores, its official website, and select authorized partners. Employees with the brand told 2 Investigates that Le Labo is not a direct partner with Walmart.

A closer look at customer reviews on Walmart’s site revealed at least one consumer claiming, “The seller is selling fake perfume and Walmart should ban the seller.”

We shared those listings and consumer complaints with Walmart and asked for the company’s response.

In a statement, a Walmart spokesperson said:

“Walmart operates an online marketplace that allows third-party sellers to offer a wide range of products, including premium fragrances. We have zero tolerance for counterfeit products or bad actors on our platform, and we require all sellers to offer only authentic, lawful merchandise.”

The company added:

“We take the information you shared seriously, and our teams are reviewing with urgency. If we confirm any violation of our policies, we will immediately remove the items and take decisive action against the sellers involved. Protecting our customers and maintaining a secure, trustworthy platform for brands is our top priority.”

Calls for clearer labeling

Pelayo believes retailers should do more to clearly inform customers when a product is being sold by a third party rather than directly by the retailer or the brand itself.

“I think they should definitely have a label or a warning that it’s coming from a third party and not directly from their store,” she said.

One retail associate told 2 Investigates they see at least two cases each week of customers bringing in counterfeit items purchased online, believing the products were authentic. The associate added that reports of counterfeit purchases often spike after Christmas.


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