Shanghai police busted a gang involved in the manufacturing and sale of counterfeit Pop Mart toys, confiscating over 5,000 fake toys valued at more than 12 million yuan (US$1.67 million).

Pop Mart alerted authorities in Shanghai's Xuhui District in March after a customer reported receiving a counterfeit version of a popular toy that had been purchased online.

The primary suspect, identified by the surname Wang, operated an online store that sold fans, speakers, and gaming consoles, according to police. However, this store also served as a front for selling counterfeit Pop Mart toys, including characters from the Labubu franchise.

On July 4, during an operation, police located a warehouse within an office building that contained more than 5,000 counterfeit toys, many of which were fully boxed and all displayed forged trademarks. Eight people were taken into custody.

Police said that since November, the group had been reproducing popular Pop Mart toys at a 1:1 scale using real products as templates. They promoted the counterfeits across various social media platforms.

Wang even purchased anti-counterfeit stickers to make the fakes look genuine. He also imposed strict precautions on his employees: banning the posting of product details online, prohibiting any disclosure of the company's name or location, and barring outsiders from entering their production premises.

Police said investigations are ongoing to trace upstream manufacturers and other online stores suspected of peddling the counterfeit toys.

In a public advisory, police urged consumers to purchase designer toys exclusively through official or authorized channels. They also advised verifying authenticity via official anti-counterfeit stickers, holographic stamps, or QR codes provided by legitimate retailers.