Instagram Seller Ordered to Pay $200,000 for Selling Fake Louis Vuitton Goods
A Singaporean Instagram seller has been ordered to pay $200,000 in damages to luxury fashion house Louis Vuitton Malletier (LVM) after selling counterfeit goods and evading court proceedings. The case highlights the growing challenges of enforcing intellectual property rights in the age of social media commerce and the difficulties in pursuing legal recourse against online sellers who operate across multiple platforms.
The Counterfeit Operation
Ng Hoe Seng, operating under the Instagram accounts “emcase_sg” and “emcrafts_sg,” sold a range of counterfeit luxury items – including phone cases, passport covers, card holders, and purses – falsely advertised as authentic Louis Vuitton products. The price disparity was significant; a fake passport cover was sold for $159, while genuine items ranged from $560 to $945.
LVM discovered the infringement in July 2022 and initiated a sting operation, purchasing $2,100 worth of goods from Ng’s initial Instagram account. After confirming the items were counterfeit, LVM issued a cease-and-desist letter in March 2023. However, Ng simply shifted his operations to a new account, “emcrafts_sg,” and continued selling the fake products. A second undercover purchase was made to gather further evidence before LVM filed a lawsuit in August 2023.
Notably, Ng chose not to participate in the legal proceedings, failing to appear in court.
Court Ruling and Damage Assessment
On November 30, 2023, the High Court ruled in favor of LVM. While LVM initially sought $4.84 million in damages, claiming $2.9 million based on 29 infringing acts at $100,000 each – the statutory cap – Justice Dedar Singh Gill deemed this amount “grossly excessive.”
In a written judgment delivered on July 2, Justice Gill limited the maximum award to $900,000, or $100,000 for each of the nine different types of goods infringed upon, ultimately awarding $200,000. The judge acknowledged LVM’s concerns about brand dilution but questioned the actual financial impact of the counterfeits, stating, “I have my doubts as to whether the claimant will suffer lost sales in any significant way… knock-offs of luxury goods are usually not substitutable with the genuine goods.”
Justice Gill also emphasized that Ng was a sole proprietor operating through social media, not a large-scale manufacturer.
Deceptive Marketing Tactics
The judgment detailed Ng’s deceptive marketing strategies, which included reposting customer photos and stories with positive reviews. “The defendant’s modus operandi… was to re-post Instagram posts and/or stories by customers who had purchased his products… ostensibly with the aim of thanking them and showing off their rave reviews,” the judge wrote. “In my view, this has the effect of compounding the defendant’s false representations.”
Ng also allegedly utilized a network of “influencers” to further promote the misrepresented products and falsely claimed his items were “upcycled” from genuine Louis Vuitton goods – a claim the judge described as “a lie upon a lie.”
The Hydra-Like Challenge of Online Enforcement
Justice Gill warned of the difficulties in enforcing intellectual property rights against online sellers who can easily evade detection. “Such online retailers can easily spread out all of their eggs in multiple baskets by setting up different online platforms at relatively low costs to sell their goods,” he stated. “An online retailer can avail himself of a hydra-like approach to continuing his infringement – in that even if one head is sliced off, another can easily spring up.”
The judge also criticized Ng for attempting to conceal his activities by making his Instagram account private while still allowing followers access. He further rebuked Ng for his refusal to engage with the legal process, stating, “A strong message needs to be sent to the defendant that he may be able to run from the claimant, but he will not be able to hide from the long arms of the law.”
Uncertain Recovery and Continued Activity
Despite the High Court’s ruling, the recovery of the $200,000 remains uncertain. As of July 3, Ng’s registered business, EMCASE SG, had ceased registration with the Accounting and Corporate Regulatory Authority, and his two known Instagram accounts had disappeared. However, a similar account – “emcrafts.sg” – remains active and appears to be selling Louis Vuitton-branded goods. This underscores the ongoing challenge of combating online counterfeiting and the need for continued vigilance from brands and law enforcement.
