Nowadays, Counterfeit Goods are "Almost Identical" to the Real Thing - The Fashion Law (2024)

Nowadays, Counterfeit Goods are "Almost Identical" to the Real Thing - The Fashion Law (1)

image: eBay

The days of slightly off-kilter fakes found on New York’s Canal Street are gone.“We are now at the point where the fakes are almost identical to the real … where they are almost 99 percent identical.” That was the central theme of a recent video posted by Antonio Linares on his Instagram account, Fake Education. The message echoes a markedly controversial one put forth a couple of years ago by Alibaba founder and chairman Jack Ma, who said, “The problem is the fake products today are of better quality and better price than the real names.”

Speaking to state of counterfeit goods – those that utilize a trademark that is “identical with, or substantially indistinguishable from” a genuine registered trademark and that is used on the same class of goods as the registered mark – Ma elaborated, saying, “They are made in exactly the same factories, with exactly the same raw materials [as authentic goods], but they do not use the names.”

Real or Fake? (Shrug)

With these sentiments in mind and given the ever-increasing rate of technological advancements and growing level of skill in the manufacturing sphere (especially in China), it should come as little surprise that it is becoming increasing difficult – even for experts – to distinguish between authentic goods and counterfeit ones, which is what Linares alluded to in the short video he posted on his account.

As the founder and operator of Fake Education, Detroit-based Linares knows a thing or two about spotting counterfeit goods. He started his educational Instagram account and corresponding website in 2012 after being “scammed multiple times for hundreds, and sometimes thousands of dollars with counterfeit sneakers” that he purchased on eBay.

There were not “any guides or any true trusted sources online for authenticating sneakers,” in 2012, according to Linares, and so, he set out to fill the void.

Lacking a background in law or law enforcement (the latter of which tends to be the background of choice for many of the individuals that big brands bring in-house to work with legal counsel in identifying and ultimately, confiscating fakes), Linares looked to “self-education,” he says. “I started to research the counterfeit industry, doing comparisons of real and fake sneaker models to arm myself with knowledge to ensure that I would never be ripped off again.”

Linares, who is now in his late 20’s, ultimately decided to share these “comparisons on social media because I didn’t want anyone else to get scammed like I did.”

Now, almost six years later, Linares says he has “built the world’s first authentication guide that helps millions of people on a weekly basis from getting scammed.” And the numbers are certainly substantial. His Instagram account boasts over 600,000 followers and 20 million weekly impressions. As for the content, itself, Linares has branched out from focusing exclusively on footwear – most centrally authentic and counterfeit Yeezy sneakers – to garments, most of which are Supreme in origin.

Linares’ focus can be so micro at times that the side-by-side imagery includes the labels that adorn real versus fake Supreme t-shirts, the red hang tags that come attached to Virgil Abloh’s Nike sneakers, or even the proper stitching for Supreme embroidered garments.

The Problem … for Brands

In the video at issue, Linares – responding to backlash from followers who complained that his recent comparisons between authentic and counterfeit Yeezy 350 sneakers lacked depth – sheds light on a growing problem for brands. “We are now at the point where the fakes are almost identical to the real … where the fakes are almost 99 percent identical,” he says.

A brief survey of the many of the comments on the video paints a striking picture of the battle that brands now face as the quality and accuracy of counterfeit goods continues to rise. “You know what that means, kids … go buy the fakes and nobody will know,” wrote one follower. “If that’s the case, where do I buy the fake for a cheaper price?” asked another. Finally, “This begs the question, why would anyone waste their time and effort to buy retail Yeezys … when China offers you the exact same shoe for cheaper and it’s always in stock.”

Brands – ranging from mainstream entities like Ugg and adidas to luxury brands, such as Chanel and Louis Vuitton – have spent decades and hefty amounts of money in waging the unending the battle against counterfeits. This fight has proven especially frustrating in the digital age, when counterfeit-selling websites have saturated the web. And when one – or even a few – of these counterfeit-hawking sites are removed as a result of legal proceedings, several others pop up in their places almost instantaneously, prompting many to liken such efforts to the game of Whac-a-Mole.

All the while, the operators of these websites walk away scot-free, since the sites, themselves, are routinely registered using fake names and hidden behind various layers of fictitious contact information, and as a result, when lawsuits are filed, there is no one to hold accountable.

Add to this already tiresome set of circ*mstances, the increased difficulty that brands will almost certainly face in attempting to deter consumers from buying almost exact – or as Linares puts it, “99 percent identical” – counterfeit versions of their products for a small fraction of the price.

As one of Linares followers suggests, “These billion-dollar shoe companies will now have to come up with watermarks and other ways to convey that they are real.” The problem with that: Just as adidas’ Boost technology – which makes up the heel of its hot-selling Yeezy Boosts – can be faked, so, too, can watermarks, making this a time consuming and expensive fight with no real end in sight.

Nowadays, Counterfeit Goods are "Almost Identical" to the Real Thing - The Fashion Law (2024)

FAQs

How do counterfeit goods affect the fashion industry? ›

The counterfeit fashion industry is not only responsible for billions in lost sales every year but also for damaging brand reputation and the brand's perceived value. When customers think they're buying a genuine product and instead get a sub-par counterfeit product, they mistakenly blame the original brand.

What is the difference between counterfeit and real? ›

Counterfeit goods are produced with the malicious intent to deceive and mislead people into believing that the items are genuine when they are not. However, replica goods are not passed off as the original products. Instead, they are acknowledged to be merely identical to the branded goods.

Is counterfeit fashion illegal? ›

It is illegal to purchase counterfeit goods. Bringing them into the United States may result in civil or criminal penalties and purchasing counterfeit goods often supports criminal activities, such as forced labor or human trafficking. Help to stop the funding of criminal enterprises by buying authentic goods.

Are fakes made in the same factory as real? ›

Speaking to state of counterfeit goods – those that utilize a trademark that is “identical with, or substantially indistinguishable from” a genuine registered trademark and that is used on the same class of goods as the registered mark – Ma elaborated, saying, “They are made in exactly the same factories, with exactly ...

What impacts do counterfeits have on brands? ›

Loss of reputation with customers

Counterfeiting can have one of two broad effects on customer psychology. It can turn customers off altogether, driving them elsewhere in search of guaranteed quality and reliability, or it can draw them in with low prices and savings. Either way, this can be damaging for a business.

How counterfeit goods are destroying brand reputation? ›

The sale of counterfeit products directly steals the sales volume of genuine brands because of cheap availability in their prices. It damages the reputation amongst customers, as they find the product faulty after unwittingly purchasing it — later claiming the brand for delivering a falsified product.

What is the difference between counterfeit and original products? ›

Substandard quality of the product: Counterfeit products tend to have cheap and unoriginal substitutes in place of authentic ones. Used, old or rusted parts in electronic devices, forged leather, slightly changed appearance, apparently pathetic quality material or cloth etc., are suggestive of a fake product.

How do counterfeit bills compare to real ones? ›

The counterfeit portrait is usually lifeless and flat. Details merge into the background which is often too dark or mottled. On a genuine bill, the saw-tooth points of the Federal Reserve and Treasury seals are clear, distinct, and sharp. The counterfeit seals may have uneven, blunt, or broken saw-tooth points.

What is the difference between original products and fake products? ›

Counterfeit goods are imitations of genuine, authentic products that were manufactured without authorization from the brand owner. Visually, counterfeit goods may look almost identical to the original authentic products, but they often are made from different, low-quality materials.

Why do people buy counterfeit fashion? ›

Consumers who knowingly purchase counterfeit products of high-end fashion brands find it worthwhile to buy products that are lower quality, be that in terms of the material used, the manufacture process, or other factors, if they feel they'll still experience the “prestige effects” of being seen in Armani or Louis ...

Why is counterfeiting illegal? ›

The production and trafficking of counterfeit goods poses a significant health and safety threat to consumers. It also impacts the economic growth of legitimate businesses and consumers through lost revenue, downtime, and replacement costs.

When did counterfeit fashion start? ›

The practice of counterfeiting is hardly new – currency counterfeiters are mentioned in Dante's writing in the 13th Century; and, the desirability and cost of high-end fashion has also spawned knock-offs and duplicates since the beginning of couture as we know it.

Why luxury counterfeit is getting worse? ›

Luxury items are expensive by definition, so the average consumer is “priced out” of those markets. This dynamic gives those with lower incomes the incentive to risk buying fake items at a discount. The issue is that low earners are not the only consumers who fall victim to counterfeiting.

What is the most counterfeit brand? ›

Apple is the most counterfeited tech brand in the world, and, much like with fake medications, bogus Apple goods are potentially fatal. In 2013, Ma Ailun, a 23-year-old flight attendant from China, died after she was electrocuted by a counterfeit iPhone charger.

Why does China have so many counterfeits? ›

It is because Chinese markets have access to all the resources required to produce counterfeits due to their high production rate, low-cost labour, and adaptive technologies setup by significant brands since the reform of China's economy in 1978.

What industries are most affected by counterfeit goods? ›

These are the five majorly affected industries by counterfeit products.
  • Footwear. Consumers love eye-catching footwear designs and fancy shoes. ...
  • Clothing. Clothing is a commodity that consumers buy often. ...
  • Leather Goods. ...
  • Electrical Equipment. ...
  • Watches and Timepieces.
May 9, 2022

What industries are most affected by counterfeit? ›

NEW DELHI : Almost 25-30% of all products sold in the country are spurious with counterfeiting being most prevalent in apparel and FMCG sectors, followed by pharmaceutical, automotive, and consumer durables, a joint report by Crisil and the Authentication Solution Providers Association (ASPA) said.

What is the impact of counterfeiting on luxury brands? ›

As a result: Luxury brands are affected by not receiving any demands for their products in a particular market, and eventually, the sales start to stall. Therefore, brands incur abrupt losses in their potential markets.

How counterfeit goods affect the economy? ›

These illicit activities steal market share from legitimate businesses and undermine innovation, with negative implications for economic growth. Bribery associated with counterfeiting and piracy weakens the effectiveness of public institutions at the expense of society at large.

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