Issue #58 Vol. 35, May 4th, 2010

The fact and the fiction on fakes

Counterfeit goods cause more damage than you may think.

By Knowlton Thomas, Web Editor

A mass of land juts out into the rolling waters, carving a peninsula into the great Pacific Ocean. A raised boardwalk allows me to walk along the shore in safety, and enjoy the waves crashing against the rocks without getting soaked. Strolling along its shore, I admire the scenic beauty of one of Mexico’s finest cities, Puerto Vallarta. But not everything around me is quite so precious.

There is a buzzing market about me, with dozens of holes in the walls filled to bursting with tacky tourist souvenirs. There are shelves upon shelves and boxes upon boxes of animal-shaped keychains, plush toys with beads for eyes and t-shirts adorned with alcoholic, crudely stereotypical Mexican Chihuahuas. Ugly as the merchandise may be, the prices are fair and many hand-woven and uniquely decorated items are available for purchase. However, when I trek deeper into the market—the streets with the rougher roads and canopies that cast shade on the storefronts—that I see how shameless merchants can get for a quick buck.

I enter an unnamed store and am immediately choked by the thick scent of cheap leather. The shop is dimly lit, and as my eyes adjust, I realize that there are no souvenirs here. Wall-to-wall, there are hundreds of purses, handbags, and wallets by the finest high fashion labels. Gucci totes mingle with Louis Vuitton cardholders on the wooden shelves and Prada purses are practically pouring out of boxes near the back.

Flipping tags over, I notice some tremendous savings: what I swore was a $1,600 Louis Vuitton handbag in Vancouver’s Holt Renfrew department store now appears to cost just one Elizabeth II. I’ve heard of good deals but not of items costing 80 times less than their original price point, especially when there appears to be an absurd abundance. And what to make of the shopkeeper, who follows you like an unwanted shadow, rambling about the large variety and low prices of his products, astoundingly eager to shed his store’s stock?

It’s a classic case of fake fashion, the marvel of Mexican-made mock-goods. And if it was restricted to just that—shady markets behind the shopping cores of Mexico cities—then perhaps there would be less cause for concern. However, that is far from reality. Counterfeit goods stretch far beyond fashion accessories and the havoc they wreak is worldwide.

It is estimated that 10% of all goods produced worldwide are fake. That is an alarming amount. Worldwide, the annual sales for counterfeit products reaches $600 billion. You can’t hide that statistic under the rug any more than you can hide the fact that this vast volume of fake goods sold has lead to more than $500 billion lost in global sales. $1 billion per year is lost—just in tax revenue—in New York City alone.

Now, there are a few common arguments as to why purchasing counterfeit goods is not a big deal. Yes, fakes may be faux pas in most social cliques, but who cares? If nobody can tell the difference, does it really matter? And besides, only the ragingly successful, multi-million dollar companies get mimicked. They probably don’t even notice the loss. They should be flattered.

Trust me, they notice. Authorized makers of casual sportswear, such as hockey jerseys, are constantly underhanded by black market sellers of fake, cheaper versions. Fashion labels spend immense amounts of money defending themselves in court and using what they can of the law to strike down those who shamelessly copy their signature styles in the name of dirty money.

Burberry, to cite a specific example, is famously identified by its classic tartan pattern. It’s on the collars and plackets of their polos, the lining of their iconic trench coats, and adorning their Scotland-made, pure cashmere scarves. Attached to their goods are tags, which read, “The Burberry Check is a trade mark belonging to Burberry Limited and is registered or protected by unfair competition laws in all major markets.”

This note definitely doesn’t stop underground manufacturers and sneaky side-projects, which create dozens of knock-offs—in Burberry’s case, from the shamelessly obvious scarf fakes, where one line is a different thickness or colour hue, to products the company doesn’t even make, like baby strollers and smartphone cases. Harley-Davidson, the motorcycle company, has never made pipes, lighters, or coin cases. Yet there are products available online that clearly sport their logo, exactly the one that’s thoroughly copyrighted.

Knock-offs vary considerably in quality, how similar they attempt to be to the original, and how much they damage companies and the economy, which is based on the process of their creation. And while the process varies considerably as well, it’s never for the good of the local or global economy.

The counterfeit industry is believed to have stolen more than 750,000 jobs in the United States of America and costs the country upward of $200 billion per year, a growing number. And in Canada? Many experts suggest it’s comparatively worse. “There’s more counterfeiting in Canada because we have poor laws, less police interaction, and rarely get customs enforcement,” says Lorne Lipkus, a lawyer who’s carved a niche in anti-counterfeiting enforcement. “Our officers aren’t even allowed to legally search, detain and destroy counterfeit merchandise just because it’s counterfeit.”

Beyond the loss of jobs and money is the danger that unfiltered fake goods pouring into the marketplace create. Counterfeit plush toys are infamous for often being stuffed with dirty, potentially materials. Imitation perfumes can be health hazards, using urine as a stabilizer, causing skin rashes and provoking allergic reactions. Fake pharmaceuticals are terrifyingly common as well—does anyone even want to know the consequences of taking a counterfeit Viagra?

Furthermore, there are sinister crimes lying behind many counterfeit goods. Child labour is often involved in the process. And when counterfeiting is going on, drug trafficking is often nearby. And it is believed that the terrorists who bombed the Madrid train in 2004 were financially supported by money raised through counterfeit sales.

Harper’s Bazaar, a salient American fashion magazine since the 1800s, launched a campaign against counterfeit clothing five years ago. The campaign, titled “Fakes are never in fashion,” aims to raise awareness about the corruption consumers support when they turn to the counterfeit market. With no emphasis on how the honest companies might be negatively affected, the campaign instead focuses on targeting typical consumers by providing information on fake goods that are unknown to most people. Harper’s Bazaar suggests that, while on the heel of a recession, fakes seem like an affordable alternative to luxury goods, consumers must be more aware of the criminal activities they fund by purchasing counterfeit products.

Because it isn’t illegal to possess counterfeit items, it can be hard for consumers to believe they’re partaking in criminal activities. But while it may not be direct, they definitely are. It’s illegal to produce and sell fake goods and the money the sellers earn from buyers isn’t exactly going to charity. Consumers may think they’re enjoying simple savings, but toting around their fake designer handbag is actually a public sign that not only do they lack a taste for quality, they are—whether they know it or not—damaging our economy, causing job losses, and supporting drug trafficking and child and immigrant exploitation. Is that really worth it?

Do the right thing. Keep it real.

Buyer beware: how to spot fakes

Knock-offs can be difficult to spot, but there are many ways to steer clear of them.

1. Check the spelling. Semi-surprisingly, counterfeiters will often misspell designer names. Look for swapped letters, wrongly capitalized letters, or any other spelling error that an authentic product would never have.

2. Check the hardware. Luxury items, particularly clothing and accessories, generally sport their logo or brand name on the hard components of the product. Look for identification on buttons, zippers, latches, snaps, buckles, etc. If there is absolutely none, be wary.

3. Check the packaging. In most cases, luxury goods spare no expenses. They boast meticulous packaging, which includes superior quality boxes/bags, cards or tags of authenticity, product care information papers, and tissue paper protection. If your product was cheaply wrapped in plastic with little or nothing else, you could have a fresh fake on your hands.

4. Check the label. Genuine articles of high-end clothing and accessories will generally have stitched-in labels. A luxury item with no built-in identification, or one with a cheaply attached tag instead, could very well be counterfeit.

5. Check the craftsmanship. The stitching and materials of modern day knock-offs may very well be up to parity with their authentic counterparts—where it’s highly visible at least. But often, fakes will sport shoddy stitching and cheap materials where it isn’t visible, such as inside purses and bags and in the lining of coats and pockets.

6. Check the place. Buy the best from where it belongs. Purchase good’s from an authorized store or website. Avoid street vendors, flea markets, and especially shady websites. They’re likely fakes and there isn’t going to be any customer support for a return.

7. Check the price. If it’s too good to be true, then it isn’t. It’s fake.