Labubus—quirky, monster-like collectible figures created by Hong Kong-based artist Kasing Lung and sold via Pop Mart, a major Chinese toy retailer—have recently experienced a surge in popularity.¹ This newfound attention has sparked a significant rise in counterfeit ‘Lafufus,’ posing challenges for both the toy and luxury goods industries.² As demand for these collectibles has soared—often fueled by limited-edition ‘drops’ that sell out within minutes—counterfeiters have rushed to capitalize on the craze, flooding the market with fake ‘Lafufus’ that are often difficult to distinguish from the real thing.³ The scarcity created by these ‘drops’ and the surrounding hype has further intensified the secondary market, making it even harder for consumers to verify authenticity.⁴

Cross-Industry Impact

The Labubu phenomenon highlights a broader trend: the convergence of the toy and luxury sectors. Collectible toys are increasingly viewed as status symbols, blurring the lines between traditional playthings and high-end collectibles.⁵ The use of ‘drop’ releases is partially to blame. Mirroring strategies popularized by the luxury and streetwear industries, ‘drop’ releases heighten both demand and perceived value.⁶ Celebrities have further propelled the luxury-toy trend by prominently showcasing toys as accessories—often attached to handbags or outfits—transforming them into fashion statements and emblems of exclusivity.⁷ The runaway success of Labubu, particularly its popularity as a bag charm among fashion-forward celebrities, has caught the attention of luxury fashion houses prompting several to venture into the plush toy market themselves.⁸

Safety Concerns

While collectible toys like Labubus are increasingly popular among adults, the primary market for toys remains children.⁹ The surge in adult demand has contributed to a spike in counterfeiting, which poses significant safety risks for children.¹⁰ Counterfeit toys often fail to meet established safety standards and may contain hazardous materials such as lead paint, small detachable parts that present choking hazards, or other toxic substances.¹¹ Unlike authentic products, counterfeit toys are not subject to rigorous safety testing and regulatory oversight.¹² Consequently, children may be at risk of injury or exposure to harmful chemicals when playing with counterfeit toys.¹³ The adult demand of child-centric consumer products makes the proliferation of counterfeit toys a pressing child safety issue, in addition to a brand protection concern. As brands move to capitalize on the Labubu craze developing toy products of their own, they should be wary of the dual challenge of protecting their brand integrity and safeguarding young consumers.

Key Takeaways for Brands

• The rise of counterfeit ‘Lafufu’ toys demonstrates the vulnerability of both toy and luxury brands to counterfeiting threats.
• Businesses should review and strengthen their brand protection strategies, including supply chain monitoring and consumer awareness campaigns, especially regarding products that could be viewed as targeted to or popular with children.
• Collaboration across industries may be necessary to develop effective anti-counterfeiting solutions and stay ahead of increasingly sophisticated counterfeit operations.

1. Juliana Kim, ‘Labubu’ is a plush toy that is causing a frenzy. Here’s its origin story, NPR (Jun. 18, 2025), https://www.npr.org/2025/06/18/g-s1-72939/what-is-labubu-pop-mart-explained ↩
2. I’m losing my mind over Labubu dolls – and the fake Lafufu, The Independent (Jul. 9, 2025), https://www.independent.co.uk/voices/labubu-lafufu-pop-mart-china-b2790853.html. ↩
3. Julie Bort, The Labubus Got Me — and I Learned a Trick to Finally Buy One, Business Insider (Jun. 2025), https://www.businessinsider.com/where-to-buy-labubu-reddit-tiktok-popmart-game-2025-6; The Independent, supra note 2. ↩
4. The Dark Side of Product Drops: How Buzz Turns Into a Fraud Target, No Fraud (Apr. 9, 2024) https://www.nofraud.com/blog/product-drops-fraud/. ↩
5. Tan Shue Xin, Labubu: What Is It And Who Are Its Celebrity Fans, Harper’s Bazaar Singapore (Oct. 3, 2024), https://www.harpersbazaar.com.sg/lifestyle/labubu-what-it-and-who-are-its-celebrity-fans. ↩
6. Hélène, The “Drop”, A New Profitable Strategy For Luxury Brands, Luxus + (Dec. 5, 2018), https://luxus-plus.com/en/the-drop-a-new-profitable-strategy-for-luxury-brands/. ↩
7. Xin, supra, note 6. ↩
8. Emily Burack, The Rise of the Status Stuffed Animal, Town and Country (Jun. 5, 2025) https://www.townandcountrymag.com/style/collectibles/a64948035/labubus-status-stuffed-animals-popularity-history-explained/. ↩
9. Kim, supra note 1. ↩
10. Aiya Zhussupova, Troubling warning to parents over fake Labubu dolls in UK as thousands of toys risk ‘chemical exposure’, The Sun (Jul. 18, 2025), https://www.thesun.co.uk/news/35905215/troubling-warning-to-parents-over-fake-labubu-uk/. ↩
11. Id. ↩
12. Meaghan H. Kent, Taking Fake Toys Offline: A 2020 Focus on Proactive Measures to Reduce Counterfeits and Unsafe Toys Sold on Online Marketplaces, The Toy Association, https://www.toyassociation.org/App_Themes/toyassociation_resp/downloads/research/whitepapers/FakeToys-WhitePaper.pdf (last visited, Jul. 23, 2025). ↩
13. Id. ↩