As counterfeit lawsuit nears, StockX points to its track record

Resale platform StockX has been on the receiving end of claims that it has sold counterfeit versions of branded goods, but claims to have cracked down on fakes in a new report.

The company's second annual Brand Protection & Customer Trust Report notes that, last year, it rejected more than 370,000 products — collectively valued at nearly $74m — for not meeting its verification standards.

Its 2024 rejections included 250,000 pairs of sneakers, of which 30,000 (worth an estimated $10m at gross merchandise value) were flagged as suspected counterfeits. It also said that suspicion of being fake is the second most common reason for a product to be turned down, with the number one reason that items are deemed defective.

The document comes as StockX stands accused in a long-running lawsuit brought by athleticwear giant Nike of distributing pairs of counterfeit shoes, despite claiming to authenticate all the items it receives and sells on, and false advertising. The suit is due to come to trial later this year.

"The findings in this report underscore our ongoing commitment to protecting our community and setting a higher standard for accountability across the resale industry," said StockX chief executive Greg Schwartz.

"We've made significant investments in our verification processes, rolled out new, stricter requirements for sellers, enhanced our fraud prevention systems, and built valuable partnerships with brands and law enforcement agencies," he added. "But as excited as we are to share the wins, we also recognise the work ahead. This report isn’t just a reflection of where we’ve been — it’s a roadmap for how we’ll continue to lead with trust at the centre of everything we do."

Among the company's investments in verification technologies are the use of machine learning to assign a risk score to every order that enters a verification centre, upgrading of systems to handle embedded technologies used by brands like RFID and NFC, and CT scanning of items to analyse internal structures typically not visible to the naked eye.

The report notes that the cost commonly counterfeited sneaker last year was Adidas' Campus 00 range, while for shoes it was the UGG Classic Ultra Mini Boot and Adidas Yeezy Slide Bone. Among accessories, the most faked items were Prada Symbole sunglasses and Fear of God hoodies, while the most-targeted collective was Pop Mart Labubu figures.

 "These findings highlight the growing interest among consumers in a wider variety of footwear brands and an increased demand for affordable, general release sneakers," says the report.

"This marks a significant shift; in previous years, the most counterfeited products were typically exclusive, rare, and expensive releases."