[Counterfeit Trend Report] Harmful Substances 330 Times the Standard Value Found in Counterfeit Sneakers. SNKRDUNK Releases Investigation Results on Harmful Substances Lurking in Counterfeits

SODA Inc. (Head Office: Shibuya-ku, Tokyo; CEO: Yuta Uchiyama; hereinafter referred to as SODA), which operates SNKRDUNK (SNKRDUN), has conducted an investigation into harmful substances contained in counterfeit products and is releasing the results.

In recent years, with the expansion of the reuse market, the secondary distribution market has become more familiar. At the same time, interest in the authenticity, quality, and safety of circulating products has also increased. SNKRDUNK conducted this investigation from the perspective of "safety," which is difficult to discern through authenticity appraisal alone, in order to grasp the reality of counterfeit products and realize an environment where customers can trade with greater peace of mind.

Investigation Background

According to the "Status of Seizure of Intellectual Property Infringing Goods at Customs in Reiwa 7" (Note 1) announced by the Ministry of Finance on March 6, 2026, the number of import seizure cases was 31,760. Although this is a 3.8% decrease compared to the previous year, it remains at a high level, exceeding 30,000 cases for three consecutive years.

Furthermore, with the spread of online transactions, the distribution channels and methods for counterfeit goods have become more diverse and sophisticated, and risks associated with transactions, such as item-switching fraud and return disputes, have become apparent. In addition, counterfeit products not only pose an intellectual property problem of being "not genuine," but in some cases, the materials and chemicals used are unknown, raising concerns from the perspective of quality and safety.

Note 1: Status of Seizure of Intellectual Property Infringing Goods at Customs in Reiwa 7 https://www.mof.go.jp/policy/customs_tariff/trade/safe_society/chiteki/cy2025/index.html

Investigation Overview

Investigation Name: Investigation into Harmful Substances Contained in Counterfeit Products

Investigation Subjects: Genuine and counterfeit sneaker samples

[Target Product] PEACEMINUSONE × NIKE AIR FORCE 1

LOW '07 PARANOISE 3.0 "BLACK AND MULTICOLOR" / G-DRAGON

Investigation Items: Comparison of the presence and content of specific aromatic amines, formaldehyde, and heavy metals (lead).

Investigation Method: Analysis of specific aromatic amines, formaldehyde, and lead based on respective standards. (Testing conducted in compliance with CPSC)

Implementation Period: March 13, 2026 - March 30, 2026

Implementing Body: SODA Inc. (Testing conducted by a third-party testing organization)

Remarks: The results of this investigation are based on the samples examined and do not necessarily apply uniformly to all counterfeit products.

In this investigation, we compared genuine and counterfeit sneaker samples in three categories: the presence and content of specific aromatic amines, formaldehyde, and heavy metals (lead).

Investigation Results

The investigation revealed that components exceeding the standard values that affect human health were found in the fasteners of the counterfeit sneakers in the "presence and content of heavy metals (lead)" category. (Note 2) (Note 3)

The lead content in the genuine product in this investigation was 69 ppm, which was within the limit of 100 ppm set by the U.S. Consumer Product Safety Improvement Act (CPSC) (Note 2). In contrast, the lead content in the counterfeit product in this investigation was 33,000 ppm, exceeding the limit by 32,900 ppm, which corresponds to 330 times the standard value.

These results suggest that the problem of counterfeit products is not limited to authenticity or quality issues but may also require attention from a safety perspective. According to the WHO (World Health Organization) "Lead poisoning and health" (updated 2024) (Note 3), lead is a harmful substance that can affect multiple parts of the body, including the brain, kidneys, liver, and bones, and its effects are particularly concerning for children and women.

We believe that ensuring the reliability of circulating products, not just their price and rarity, is becoming more important than ever for customers to use secondary distribution services with peace of mind.

SNKRDUNK will continue to strengthen its authenticity appraisal system and, through the "SNKRDUNK Appraisal Research Institute," which is responsible for investigating, researching, analyzing, and disseminating information on counterfeit products, will accumulate and disseminate knowledge regarding counterfeit and imitation goods. We will continue to develop our services so that more customers can use "SNKRDUNK."

Note 2: CPSC Regulations on Lead https://www.cpsc.gov/Business--Manufacturing/Business-Education/Lead/Total-Lead-Content

Note 3: WHO "Lead poisoning and health" (Updated September 27, 2024) https://www.who.int/en/news-room/fact-sheets/detail/lead-poisoning-and-health?utm_source=chatgpt.com

5 Risks of Counterfeit Products

1. Health and Safety Hazards: Harmful Substances/Poor Quality

Harmful chemicals that do not meet safety standards may be used, potentially leading to health problems such as skin irritation. Furthermore, risks of breakage and accidents are pointed out due to poor quality of sewing and materials.

2. Infringement of Intellectual Property Rights: Unauthorized Use of Trademarks and Designs

Unauthorized use of brand logos and designs constitutes an infringement of intellectual property rights such as trademark rights and design rights.

3. Damage to Brand Value: Decline in Trust

The circulation of counterfeit products can make it difficult to distinguish them from genuine products, potentially leading to a decline in trust and value in the brand.

4. Economic Loss: Impact on Companies and Creators

The circulation of counterfeit products deprives legitimate products of sales opportunities, directly impacting the revenue of companies and creators.

5. Complicity in Illegal Activities: Funding for Criminal Organizations

Profits from the manufacture and distribution of counterfeit goods are pointed out as a potential source of funding for organized illegal activities.

About "SNKRDUNK" - An Appraised Marketplace

SNKRDUNK is an appraised marketplace used by over 6 million people monthly. It handles apparel, sneakers, and hobby items. By appraising all traded items, it prevents the circulation of counterfeit goods and provides a safe and secure trading environment.