The Delhi High Court has directed e-commerce platform Meesho to remove listings of alleged counterfeit sunscreen products with the brand names of Sun Pharmaceutical Industries Ltd. from its platform.
The order came after Sun Pharma approached the court to complain that fake versions of two of its sunscreen products - Belo Photostable and Photostable Gold - were being offered for sale on Meesho.
Sun Pharma told Justice Anup Jairam Bhambhani that none of its genuine products are listed on the e-commerce platform. However, the company claimed that counterfeit versions using its brands were being sold through Meesho.
Court Orders Removal of Listed URLs
Sun Pharma provided the court with a number of URLs through which the alleged counterfeit products were being offered.
In an ex parte interim order, the court took into account the URLs filed by Sun Pharma and directed Meesho to take down all of the identified listings.
The court has also issued notices in connection with Sun Pharma’s claims and has also sought responses from the manufacturers of the alleged products and Meesho.
The interim direction is that the disputed listings identified by Sun Pharma are to be removed while the broader legal dispute continues.
Sun Pharma Raises Counterfeit Product Concerns
Sun Pharma argued that the alleged sale of counterfeit products under its brands poses a significant threat to its reputation and consumer trust.
The company has built its brands over years, and unregistered sale of products carrying its trademark could confuse consumers about the authenticity, quality and safety of the products they purchase, he said.
The problem is particularly sensitive in pharmaceutical and healthcare industries, where the brands are so much in consumers’ hands in purchasing decision-making.
Sun Pharma has therefore taken action against the counterfeit listings and said that such products should not be available on an e-commerce platform.
Platform Liability At The Centre Of Dispute
That could also raise broader questions about who is to blame online marketplaces when counterfeit goods are sold on their platforms and how.
Sun Pharma argued that Meesho, as an e-commerce platform, has a responsibility to ensure that counterfeit products are not offered for sale and should take down such listings when concerns are brought to its attention.
And the dispute could test how e-commerce platforms are expected to respond when brand owners discover counterfeit products to be sold by third-party sellers.
As online marketplaces have become more important in India’s retail ecosystem, the issue has become more important.
Why The Case Matters
The Delhi High Court cases might have far-reaching effects beyond the Sun Pharma products involved in the dispute.
An issue of platform liability for counterfeit goods is at stake in this case because the brand owner gives specific information about infringing listings.
But e-commerce platforms can argue they are in fact, a platform for sellers and buyers, and there is a market for brands to sell and also to sell. Brand owners, however, are increasingly demanding that platforms do things to prevent counterfeit products from being offered to consumers.
The court's interim order to remove the identified URLs is a relief for Sun Pharma while they investigate.
Alleged Counterfeit Sunscreens Named
The products at the centre of the dispute are Belo Photostable and Photostable Gold, both of which are part of Sun Pharma's sunscreen portfolio.
Sun Pharma argues that while genuine versions of these products are not available on Meesho, allegedly counterfeit versions with the company's brands appeared on the platform.
The company submitted the relevant URLs to the court as part of its case.
The manufacturers who have disputed the listings will have a chance to respond to the allegations, and Meesho will also have to respond to the claims against the platform.
What Occurs Next?
The Delhi High Court has issued notices and sought responses from the parties involved. The interim removal direction will still remain an important issue as the court weighs Sun Pharma's allegations.
And the case could also provide new clarity in terms of what is required of online marketplaces to do if trademark owners come across counterfeit products in their inventory.
The problem for pharmaceutical companies is beyond intellectual property and commercial, because counterfeit healthcare products can potentially undermine consumer confidence in established brands.
For e-commerce platforms, the case shows once more how systems for detecting, monitoring and removing disputed listings are needed.
The latest order therefore represents a significant development in the fight over counterfeit products in India’s ever-expanding online marketplace, and the ultimate legal position will be as a result of responses from Meesho and the manufacturers involved.
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