What’s wrong with buying fake luxury goods? (2024)

Kamila Hankiewicz

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Mar 19, 2018

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Let me be honest. I’ve done it. In my checkered student past, I bought a couple of fakes. In the first case — I wasn’t even aware I’m buying one. How come? — you may think. Well, following latest fashion was never my thing and while scrolling through thousands of dresses on famous marketplace I stumbled upon one dress. I like to shop for original (pun intended) designs, something edgy and non mass-made, and that dress was exactly what I liked.

I didn’t know it was a copy of a famous designer until the dress arrived to my door. On the product photos on the website there were no tags, no names, just words high quality summer dress Italian inspiration design. At that time Aliexpress was just starting to become popular so I didn’t really pay attention to WHAT I’m buying. I just liked how it looked. When it arrived, I noticed that the dress was of beautiful quality. There was just one problem — the tag was carrying a very well known brand name.

Sellers smartly declared the minimum value of the package of couple of $ so the package didn’t even go through customs inspection to be taxed. Yes, I loved the product when it arrived two weeks later, but it made me feel phoney wearing it.

I was just a regular student with no rich family or running business, so I was fighting a hidden war with myself. And it turns out I wasn’t the only one. I later read about the research conducted by three scientists — Francesca Gino of the University of North Carolina at Chapel Hill, Michael I. Norton of Harvard Business School and Dan Ariely of Duke University, who have been exploring in the laboratory the power and pitfalls of fake adornment. Their research suggested that knockoffs may not work as magically as we would like. Wearing counterfeit not only usually fails to bolster our ego and self-image the way we hope, it actually undermines our internal sense of authenticity. “Faking it” makes us feel like phonies and cheaters on the inside, and alienated on the outside. Counterfeit “self” leads to cheating and cynicism in the real world.

Well, counterfeiting is a serious economic and social problem, saying that it’s epidemic in scale — won’t be an exaggeration. Most people buy these fake brand-name items because they are a lot cheaper than the real deal and for some reason there is some kind of social consent for selling and wearing counterfeit items. You don’t also need to dig deep to find hundreds of websites shamelessly explaining how to find and buy a good quality fake. Cartier would be found under “c luxury watch”, while Chanel would go under cc/ double C.

The problem with this is that a designer that lends her/his name to the brands is just one player in a whole ecosystem. If a person buys a fake, it means that they don’t buy an original. True, some people wouldn’t be able to afford one anyway, but as we know, scarcity and limited access drives value up (or at least keeps it firmly in place). However, if enough people buy and wear fake, plummeting sales lead to changes in the industry. Typically, companies develop new technology to combat counterfeiting or end up having to sue copycats. These costs end up getting passed to the consumer. Another scenario is that lower demand could lead to lay-offs for people involved in the manufacturing process. Counterfeiting ends up damaging the very industry it tries to copy.

Ultimately, the main ingredient of a counterfeit is deception. Something is passed off as something else. When you purchase a fake item, you become a part of this charade. This brings the question: Why the need for all that deception? Surely, it’s not the quality, because copies are never as good as the original. It is also not an investment piece because a fake piece does not appreciate in value like some luxurious bags do.

The popularity of fake goods and defense of counterfeiting should offer an opportunity for introspection. To some degree, fashion is form of expression. You inevitably say something about yourself. This is true with luxury brands. Gucci is hip. Hermès or Philippe & Patek value heritage. Goyard is about craftsmanship. In patronizing copies and choosing to brandish them despite knowing their fakeness, what do you end up saying about yourself?

Buying fake luxury handbags isn’t as innocent as you think. There are many hidden dangers behind the illegal trade.

The wrongness of purchasing counterfeit items doesn’t limit to moral integrity impact or the lost sales of the rights owner. It reveals many hidden dangers behind the illegal trade.

Last week I’ve had the chance to attend OECD Task Force forum on Countering Illicit Trade in Paris and the findings are more than worrying. You don’t need to be genius to see that counterfeiters do not pay taxes, which results in less money for your city’s schools, hospitals, parks and other social benefits. Most counterfeit goods are produced in sweatshops run by organised crime in a professional manner.

Media like to report decreasing numbers of violent street crime related to illicit trade, but the truth is — it’s getting of bigger and bigger problem. The only difference is, that it’s no longer baseball bats and fists, but hidden from a daylight organised operations with great use of technology. Blockchain and cryptocurrency can help with staying anonymous while decreasing chances of tracing the roots of particular crime.

In other words, profits often support terrorist groups, drug smugglers and sex traffickers, although it’s hard to estimate the real scale of this problem.

Unlike legitimate products, counterfeits aren’t inspected or regulated by government agencies. Fake goods are often bad quality and in many cases — unsafe. Counterfeit electrical goods are not put through the same vigorous safety checks as legitimate items and are often very dangerous. Fake cosmetics, pharma and fragrances have been found to contain toxic levels of chemicals and unpleasant substances, such as arsenic, mercury and even urine, that at best — would simply not work, and at worst — could seriously harm your health.

Because of this lack of regulations, there are no guarantee of safety or productiveness. You’re never sure if the products are sourced from seedy sweat-shops that employ children.

If you still need convincing on the dangers associated with this phenomenon, I recommend watching Alastair Gray’s TED talk on counterfeits:

As we at at Tracemarq.com are building a Blockchain-based tool helping to trace counterfeited goods, I’d love to hear your thoughts — do you approve or disapprove buying them?

What’s wrong with buying fake luxury goods? (2024)

FAQs

What’s wrong with buying fake luxury goods? ›

Each time you buy a counterfeit good

counterfeit good
Knockoff products are those that copy or imitate the physical appearance of other products but which do not copy the brand name or logo of a trademark. They may still be illegal under trademark laws if they confuse consumers or violate patents.
https://en.wikipedia.org › wiki › Counterfeit_consumer_good
, a legitimate company loses revenue. This translates to lost profits and the loss of U.S. jobs over time. Moreover, you work hard for your money and by buying from reputable sources, you help to guarantee that you are getting what you paid for. Know who you buy from.

Why is it bad to buy counterfeit products? ›

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.

Why shouldn't you buy fake bags? ›

Counterfeit designer bags are often made using low-quality materials and substandard manufacturing processes. This results in products that lack durability and may be unsafe for use. Inferior materials can cause allergic reactions, skin irritations, or even pose more significant risks if they contain harmful chemicals.

What are the disadvantages of fake products? ›

Disadvantages of counterfeit goods for businesses
  • Counterfeit goods are a threat to brand reputation. ...
  • Loss of revenue. ...
  • Consumer safety. ...
  • Declining consumer confidence. ...
  • Legal and intellectual property issues. ...
  • Negative economic impact.
Jun 22, 2023

What are the issues about counterfeit products? ›

Health and safety risks: Counterfeit products are often produced using substandard materials and poor manufacturing practices, which can lead to health and safety risks for consumers. For example, counterfeit medications may contain harmful ingredients or be ineffective at treating the condition they are intended for.

Is it okay to buy replicas? ›

The manufacture and sales of counterfeit goods is illegal. Buying counterfeit goods, however, is not illegal, even if you do so knowingly. However, there are many reasons why you should not do so.

Is it wrong to buy knockoffs? ›

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.

Is it okay to carry fake designer bags? ›

Customs and Border Patrol officials are seizing fake merchandise, and travelers risk having their goods confiscated. Importantly, carrying fake designer bags can lead to forfeiture, regardless of where or how you obtained them.

Can you wear fake designer in Paris? ›

It is a crime in France to carry or wear counterfeit designer goods, and Fren…

Is Pandabuy illegal? ›

Pandabuy also has control of over 20 'third-party' purchasing and logistics companies, completing its infringement chain from counterfeit purchasing to cross-border shipping, profiting immensely from these illegal activities.

Is wearing fake brands illegal? ›

However, you won't go to jail for a knockoff purse you bought on vacation. The U.S. Department of Justice has stated that federal law doesn't prohibit shoppers from purchasing counterfeit products for personal use, even if they know they're fake.

Is it illegal to have fake brands? ›

California Penal Code 350 PC makes it a crime to manufacture, sell, or possess for sale, any counterfeit trademarks. Trademark Infringement and counterfeit goods is described under California Penal Code 350, which prohibits possessing, selling, or manufacturing counterfeit goods with a registered trademark.

What is the most counterfeited brand? ›

WHICH BRANDS ARE FAKED MOST OFTEN ONLINE?
  • YEEZY.
  • Nike Air Jordan.
  • Nike.
  • Converse.
  • Vans.
  • Adidas.
  • Timberland.
  • Puma.

What is the most often counterfeit product? ›

Clothes and shoes — the most commonly purchased counterfeit items, according to the survey — might pose minimal threats, but even these products may contain harmful chemicals such as lead.

Is it illegal to wear fake brands in Europe? ›

Bringing counterfeit goods into the United States may result in civil or criminal penalties along with your goods being destroyed. Repeat offenders could be fined up to double the value of the trademarked goods. "Other places in Europe such as France or Italy have harsher punishments on those who wear fake goods.

How big of a problem is counterfeiting? ›

Counterfeiting has grown into a problem that the Organization for Economic Cooperation and Development says was worth $464 billion in 2019, or 2.5% of world trade. 2 It was once thought that counterfeiters went after only high-value or luxury items such as pharmaceuticals, designer handbags, or perfume.

What damage does counterfeiting cause? ›

Damage to the economy

Counterfeiters cause significant losses to the honest businesses whose products they're faking, since they're stealing customers and revenues from right under their noses. This in turn contributes to layoffs, and in the worst cases even the closure of an honest business.

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