Vape firm wins block on DHGate sellers accused of counterfeiting

Florida vape company Bidi Vapor has been awarded a restraining order against 24 defendants – mainly based in China – that it accuses of counterfeiting its products.

The manufacturer of the disposable Bidi Stick vape pen won the injunction and asset freeze from a federal judge in the Southern District of New York court against the sellers, which it said were distributing the fakes through the wholesale website DHGate.com.

The Melbourne-based company warned recently that it had come across a video showing a manufacturing facility that at first glance seemed to be a legitimate production unit for Bidi Stick, but was actually operated by counterfeiters who it says have become “frighteningly good” at copying their products.

“The federal lawsuit is a part of Bidi Vapor's comprehensive, anti-counterfeit programme designed to combat the sale of counterfeit and infringing products,” said the company in a statement.

Bidi Vapor has also attempted to protect its nicotine products from counterfeiting through the use of security labels, that can be tested in three ways.

Firstly, users can pour a small amount of water on the sticker and, once it dries, genuine product should display a Bidi logo. Secondly, after smearing black marker on the sticker, the Bidi logo should turn black and stay on if smeared with a finger.

Finally,  users can peel off the sticker to reveal a QR code including a unique serial number that can either be scanned with a smartphone or types into the authentication page of the company’s website, prompting a pop-up message that indicates whether the vape is genuine or fake.

“The shady business of counterfeit products is penetrating the market, putting Bidi products in a bad light,” says the company. “We do not want our consumers and partners to fall victim to these counterfeits.”

It also advises customers to buy the sticks from authorised direct retailers only. Kaival Brands, the exclusive distributor for products manufactured by Bidi Vapor, expects to make $400m to $450m in revenues from the range in fiscal 2021.

A recent report noted that the global market for e-cigarettes, estimated to reach $16.9bn in 2020, is projected to more than triple in size to $59.3bn by 2027, creating an irresistible draw for counterfeiters who want to tap into that growth.

Image by Krystian Graba from Pixabay