Starbucks, the world's most famous coffee brand, can be seen with its green logo and elegant stores no matter what city it is. However, while you're enjoying a fragrant latte, have you ever wondered if the coffee in your hand really comes from Starbucks?
Recently, Shanghai** successfully smashed a fraud gang counterfeiting Starbucks, arrested 17 suspects, and the amount involved exceeded 40 million yuan. This gang took advantage of Starbucks' popularity and influence to recruit franchisees online with a franchise fee of 100,000 yuan per store, and then instructed franchisees to use counterfeit trademarks, logos, materials, etc., to open and operate counterfeit Starbucks stores across the country. As of the time of the case, more than 50 counterfeit stores had been opened across the country.
The appearance and decoration of these counterfeit stores are very similar to genuine Starbucks, and there are even some products similar to Starbucks, such as "Frappuccino" has become "Starbucks Ice", and "Starbucks Coffee Service" has become "Starper" or "Stoneburncoffee". These copycat stores are mainly located in some areas where Starbucks has not yet entered, such as Xinjiang, Sichuan, Anhui, etc., in order to deceive consumers and franchisees.
So, how do these fake Starbucks stores work? What kind of black industry chain is hidden behind them? This article will uncover the truth of this ** for you.
Fake Starbucks' investment promotion routine.
The investment promotion routine of fake Starbucks is actually a use of the cooperation model between Starbucks and Nestle. In 2018, Nestlé signed a global licensing agreement with Starbucks, and Nestlé became the franchisee of Starbucks coffee products for the designated channel. In 2019, Nestlé launched Starbucks Coffee Service in China, a coffee beverage solution that is available outside Starbucks stores. Nestlé provides equipment and promotional materials, as well as beverage ingredients, including Starbucks coffee beans and Nestlé milk, to out-of-store service locations through direct authorized distributors. These service points are usually found in hotels, offices, hospitals, universities, sales offices, etc., in the form of bars, selling some of Starbucks' classic products, such as American, latte and Full.
This cooperation model gives the gang of fake Starbucks an opportunity to take advantage of. Without the authorization of Starbucks and Nestle, in the name of "Starbucks Coffee Service", they falsely claimed to have Starbucks franchise qualifications, and recruited franchisees online with a franchise fee of 100,000 yuan per store. They will also provide some false financial statements, market analysis, marketing planning, etc., to attract the trust of franchisees. Once the franchisee signs the contract, they will instruct the franchisee to use counterfeit trademarks, logos, materials, etc., to open stores across the country that operate counterfeit Starbucks. These stores not only infringe on Starbucks' intellectual property rights, but also deceive consumers and franchisees, causing serious economic losses and social impacts.
Manufactured by counterfeit Starbucks.
In addition to the appearance and decoration, there are some similar products to Starbucks in fake Starbucks stores, such as "Frappuccino" has become "Star Ice Ice", and "Starbucks Coffee Service" has become "Starper" or "Stoneburncoffee". Some of these products are printed with the words "Starbucks Coffee Service" on their packaging and use a logo that is almost indistinguishable from that of the Starbucks Green Mermaid. How are these products manufactured?
According to the investigation of **, these fake Starbucks gangs already have an "industrial chain" integrating manufacturing, warehousing and transportation, business training, and marketing consulting. They have production bases in Shanghai, Jiangsu and other places, specializing in the production of counterfeit trademarks, logos, materials, etc. They also buy low-cost coffee beans, milk, juice and other raw materials through online platforms to make counterfeit coffee drinks. The quality and safety of these raw materials cannot be guaranteed, and there may even be problems such as expiration, deterioration, adulteration, etc. These counterfeit products not only fail to meet Starbucks' quality standards, but may also pose a health hazard to consumers.
The legal risks of counterfeiting Starbucks.
Counterfeit Starbucks stores not only infringe on Starbucks' intellectual property rights, but also deceive consumers and franchisees, causing serious economic losses and social impacts. The operators and franchisees of these stores are facing huge legal risks.
According to Article 57 of the Trademark Law of the People's Republic of China, the use of a trademark that is identical or similar to the registered trademark of another person in such a way as to cause confusion to the public is an act of infringement of the exclusive right to use a registered trademark. According to Article 214 of the Criminal Law of the People's Republic of China, if the circumstances are serious, a person shall be sentenced to fixed-term imprisonment of not more than three years or short-term detention and/or a fine.
where the rhythm is serious, the sentence is between three and seven years imprisonment and a concurrent fine. where the circumstances are especially serious, a sentence of seven or more years imprisonment and a concurrent fine is to be given.
In addition, according to Article 6 of the Anti-Unfair Competition Law of the People's Republic of China, business operators shall not use trademarks, enterprise names, social organization names or names that are identical or similar to others, names, domain names, web pages, product appearances, etc., so that consumers are likely to mistakenly believe that there is a specific connection, thereby confusing them. In accordance with Article 21 of the Anti-Unfair Competition Law of the People's Republic of China, where the provisions of Article 6 of this Law are violated, the market regulation department shall order corrections, confiscate illegal gains, and impose a fine of between 1% and 5% of the illegal turnover; If there is no illegal turnover, a fine of between 100,000 and 500,000 yuan shall be imposed. if the circumstances are serious, a fine of between 5% and 10% of the illegal turnover shall be imposed; If there is no illegal turnover, a fine of between 500,000 and 2 million yuan shall be imposed. where a crime is constituted, criminal responsibility is pursued in accordance with law.
Therefore, a store that impersonates Starbucks will not only be liable to compensate Starbucks for its economic losses and restore Starbucks' goodwill, but will also face possible criminal penalties and administrative penalties. The price is far greater than the value of a cup of coffee.
The social harm of impersonating Starbucks.
Counterfeit Starbucks stores not only cause losses to Starbucks, franchisees and consumers, but also harm society. These hazards are mainly reflected in the following aspects:
Disrupt the market order. Fake Starbucks stores take advantage of Starbucks' brand effect, seize market share, affect the development of the formal coffee industry, undermine fair competition in the market, and damage the legitimate rights and interests of other coffee brands.
Misleading consumers. Fake Starbucks stores are shoddy, deceiving consumers' trust, reducing consumers' consumption experience, and harming consumers' legitimate rights and interests. At the same time, it also affected consumers' brand image and reputation of Starbucks, and damaged Starbucks' goodwill.
Endangering public safety. Fake Starbucks stores use substandard ingredients and equipment to make coffee drinks that do not meet food safety standards, which may cause harm to consumers' health. In addition, the operators and franchisees of these stores may also be involved in other illegal and criminal activities, such as money laundering, tax evasion, fraud, etc., which endanger the safety and stability of society.
Fake Starbucks stores are a serious social problem that needs to be paid close attention and attention by the society. We call on relevant authorities to step up crackdowns, safeguard market order and consumer rights and interests, and protect intellectual property rights and public safety. We also call on consumers and franchisees to be vigilant and discerning, not to trust network information, not to be greedy for small profits, and not to become victims of fake Starbucks. We also call on all coffee lovers to support genuine Starbucks and enjoy the real coffee culture and quality.