Woman sentenced to ten years for return fraud against luxury cosmetics brands
A Shanghai court has handed down a prison sentence of nearly 11 years to a woman who systematically replaced genuine luxury skincare products with fakes.
The Jing'an District Court in Shanghai has sentenced a woman, identified as Xue, to ten years and nine months in prison for fraud. The defendant exploited 'no-reason returns' policies on major e-commerce platforms to systematically swap high-end cosmetic products for counterfeit alternatives.
Xue utilized nine different phone numbers under various family identities to bypass platform restrictions after her initial accounts were flagged for high return frequencies. She reportedly purchased cheap imitations from secondary suppliers and used specialized equipment, including heat-sealing machines, to repackage the fakes to appear as 'unopened' original products. The genuine goods she acquired through these exchanges were subsequently sold on other platforms.
The scheme was exposed when a major cosmetics brand noticed recurring discrepancies in returned items, such as missing anti-counterfeiting codes and tampered packaging. An internal investigation led to a formal report to law enforcement, who subsequently raided Xue's residence and recovered evidence including accounts, counterfeit goods, and repacking tools. Authorities estimate the illicit operation netted over one million yuan between January 2024 and August 2025.
In addition to the prison term, Xue was ordered to pay a fine of 100,000 yuan. Prosecutors cited the case as a warning that manipulating return policies for financial gain exceeds the bounds of legal consumer rights and constitutes a serious criminal offense.