Well, the truth is, buying counterfeit and knockoff products can cause more trouble than it's worth. First, let's get the terms straight:
It's important to keep in mind that "counterfeit" and "knockoff" have two distinct meanings. A counterfeit item is a good that steals a brand's intellectual property by displaying an identical logo or trademark. A knockoff is merely an imitation of a designer's product, and is usually an extremely similar replication of the item. All counterfeit items are illegal, but a knockoff can be legal if it does not infringe upon the designer.
Counterfeiting is a booming international business with one of its central hubs located in New York City. Shipments from all over the world flow in and out of inconspicuous shops hidden in bustling Chinatown. Canal street is a popular tourist attraction because of the massive amounts of counterfeit and knock-off goods that are sold along the streets. Vendors stand on street corners yelling at passerbys persuading them to come to their table as opposed to the identical one right next door. Rows and rows of designer brand handbags hang off of metal racks ready to be picked off by eager tourists.
While your counterfeit purchase might help your wallet immediately, it actually hurts the fashion industry in the long run. Businesses rely on the law of demand to allocate resources in the most efficient way possible--as demand decreases, price decreases. Counterfeiters create this negative trend because their low prices and high supply cause the demand for the designer brands to decrease. Low demand and low prices means a loss in revenue for designer companies. Another adverse effect of counterfeiting is erosion of brand names. Part of the reason designer products are so expensive is because the brand value is factored into the price. The prestige of a designer brand name weakens with the sale of knockoff goods because the knockoff products circulating are of lesser quality than the designer version and tarnish the brand value.
Authorities are trying to crack down on the problem but it is a very difficult task. New York private investigators diguise themselves as the perouse the shops so they will not be recognized by the vendors. After multiple trips, it gets more difficult for PIs not to be recognized. The closet for the agents, "looks like a theatrical costume room, packed with scarves, yarmulkes, wigs, fanny packs, temporary tattoos and other accouterments" (Fifield). In addition to fines in the thousands of dollars, and possible jail time, for vendors, buying coutnerfeit items is also a risky business. "Penalties for counterfeit trafficking increase with the value of the faked items that were manufactured, sold or distributed. If their value exceeds one thousand dollars, you face 3 to 7 years' imprisonment. And if their value exceeds one hundred thousand dollars, you could go to prison for a term of 5 to 15 years. In addition, a judge has discretion to order that all your goods will be destroyed." (via) In short, while you're getting a cheap price for the item, there is going to be a larger price to pay if you get caught.
So the next time you want to snag that cheap Coach crossbody on the street, just remember: fakes are NEVER in fashion.
Sources
The Knockoff Squad- Adam Fifield
City Council Considers Bill Punishing Buyers Of Counterfeit Goods
Fashion Crimes- Kenya N. Wiley
Counterfeiting: a controversial issue in the Fashion Industry- Matteo Zanuso
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Louis Vuitton
