During its investigation, ITIF says it procured 51 items from “suspicious listings on Temu, AliExpress, and Shein”.
Of these purchases, 24 were deemed “likely counterfeits” across various categories such as luxury goods, household products and others, stated ITIF.
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The study is said to highlight the disconnect between the platforms’ profit motives and their adherence to intellectual property (IP) and consumer protection regulations.
ITIF has urged the United States Trade Representative (USTR) to designate Temu, AliExpress, and Shein as “notorious markets,” and for the US Customs and Border Protection (CBP) to enhance its inspection processes among other recommendations.
ITIF has advised the CBP to use AI technology to enhance counterfeit detection, which would allow for a more efficient identification of suspect listings and high-risk shipments.
It has also proposed a Foreign Counterfeit Complaint Center (FC3) by the Department of Homeland Security to help enable the reporting of counterfeit goods, aiding in data collection and enforcement against IP infringement.
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By GlobalDataITIF policy analyst and author of the report Eli Clemens said: “The proliferation of counterfeits on Temu, AliExpress, and Shein is more than a series of isolated mistakes. It reflects a fundamental failure by these platforms to prioritise anti-counterfeiting efforts, leading to poor outcomes for brands and consumers alike.
“Counterfeit products are not only bad for the economy, but they also pose potential safety risks to consumers. Without coordinated US enforcement, counterfeiters will continue to profit while American consumers and businesses pay the price.”
China remains the principal origin of counterfeit goods globally, with itself and Hong Kong accounting for over 90% of the total value of counterfeit goods intercepted by CBP in 2024, stated ITIF.
In fiscal 2023, watches and jewellery topped the list of counterfeit imports from China and Hong Kong, valued at $951m. Handbags and wallets followed at $555m, with apparel at $356m, according to CBP data.
The Federal Bureau of Investigation (FBI) estimates that IP theft costs the US economy up to $600bn each year.
ITIF’s test purchases claim to shed light on some items from AliExpress being detained by CBP for inspection but not seized; meanwhile, all likely counterfeits from Temu and Shein were overlooked, indicating enforcement shortcomings.
The report also details how sellers circumvent lax oversight through tactics such as keyword manipulation, false claims of brand authorisation, and misleading product imagery.
The ITIF claims that while Shein showed signs of improvement after previous examinations, it still struggles with IP infringement issues.
Conversely, Temu was alleged to host highly deceptive counterfeits, and AliExpress was said to offer both obvious fakes and more sophisticated imitations.
“Addressing the counterfeit trade requires sustained US action to recalibrate platform and vendor behaviour through regulatory, trade, and technological measures. Holding foreign e-commerce platforms to the same standards as domestic ones is essential to protecting consumers, fostering innovation, and safeguarding the integrity of global markets,” Clemens concluded.
The timing of ITIF’s report aligns with USTR’s call for public input on the 2025 Notorious Markets List, lending relevance to the findings and proposed actions.
