Lanzhou police bust massive family-run counterfeiting ring selling fake TVs across China

Police in Lanzhou, Gansu province, have dismantled a large-scale family-run counterfeiting operation that sold fake televisions across more than 20 provinces in China. Twelve suspects have been detained, and the value of the counterfeit goods involved exceeds 50 million yuan ($6.9 million).

The investigation, which began in May, was prompted by multiple complaints from Lanzhou consumers who purchased branded LCD TVs online but encountered issues such as flickering screens, overheating, crashes, and power outages. Despite repeated complaints, their concerns were ignored, leading them to contact the police.

Working with the respective brands, authorities discovered that the reported TVs were all counterfeit. In June, a special task force was established to further investigate the case. The team identified 17 suspicious online stores that sold these TVs under slightly altered brand names to evade platform monitoring systems. These stores operated mainly at night and offered the TVs at a discount of 30 percent off the retail price. In Lanzhou alone, the sales of fake TVs were estimated to exceed 3 million yuan.

Realizing the operation's nationwide scope, Lanzhou police escalated their findings to higher authorities. This led to the exposure of a 12-person family ring led by a man from Anhui province, identified only by his surname Zhang. The ring was responsible for distributing counterfeit TVs to customers across over 20 provincial regions, including Gansu, Beijing, Shanghai, Hebei, and Guangdong.

According to the police, Zhang established a criminal network with his relatives in 2023, operating with a company-like structure to manufacture and sell fake TVs. In July, authorities shut down the 17 online stores and coordinated arrests of Zhang and his accomplices in Anhui, Guangdong, and Zhejiang provinces.

During interrogation, Zhang admitted that the production costs of the counterfeit TVs were less than half of their selling prices. To manage complaints, the ring would offer refunds or replacements, exploiting consumers' reluctance to pursue legal action.

Zhang and his associates are now facing legal charges, and the investigation is ongoing to uncover additional details of the case.