You’re likely familiar with the well-known maxim, “If it seems too good to be true, it probably is.” When purchasing expensive, brand-name items, it’s wisdom worth heeding. High-quality items come with a steep price tag for a reason. So, if you’re offered a coveted item at an unbelievably low price, you’d be well served to be suspicious. This especially holds true if you’re buying the product somewhere that selling counterfeit goods is big business, like a souvenir shop, flea market, or online store. Otherwise, you might end up a victim of consumer fraud.
Counterfeit products—sometimes called “knockoffs”—are purposely manufactured and sold as an imitation of a brand-name product. These fakes usually fall into one of the following categories:
The producers of such products often make counterfeit labels and tags to help pull off the deception. The manufacturer often ships the two separately, and they’re combined later to make the counterfeit goods harder to track and seize.
According to the United States Department of Justice, it’s not illegal to buy a counterfeit product for your personal use—even if you know it’s a fake.
It is, however, considered fraud to manufacture, ship or sell forged, fake, or counterfeit items under federal law. For instance, laws forbidding trafficking in counterfeit goods or services don't allow the use of another’s trademark.
An individual caught violating the law risks losing the property and all equipment necessary for its manufacture and distribution. Additionally, legal penalties can include up to 15 years of incarceration, a fine of up to $30,000, or both. These penalties can apply even if the seller discloses the counterfeit nature of the products.
Buying and selling counterfeit goods isn’t without harm. It can cause many problems in the marketplace. Sellers might hope to fool consumers into overpaying for a fake purse, watch, or artwork. Legitimate manufacturers can see their profits decline as fake products eat into their bottom line, or suffer bad publicity when a product bearing their label doesn’t work properly.
Before you buy a counterfeit product, you might want to consider that the source of the counterfeit item is likely a sweatshop that doesn’t follow environmental, business, or child labor laws. Also, if you buy it online, you could become a victim of identity theft given that you’re turning over personal financial information to an organization willing to operate an illegal business.
Most importantly, counterfeit goods can be unsafe. For instance, the United States Drug Enforcement Administration reports that the drug market has been flooded with counterfeit prescription medications laced with hazardous substances. These drugs, which look identical to legitimate prescription pain relievers or sedatives, can claim the lives of unsuspecting consumers.
Your best protection is to know the product. You can improve your ability to spot fakes by learning the traits that make a product authentic. For instance, ask yourself whether the product seems unusually cheap. Crooked stitching, low-quality materials, smaller than average dimensions, or blurry patterns can be giveaways. Additionally, many manufacturers provide guides that will help you ascertain the legitimacy of the product.
It’s also a good idea to read online seller reviews. Be especially wary of negative reports or accusations of selling knockoffs. (Learn more information about your rights as a consumer by reading our article on Consumer Protection Laws.)
To report counterfeit products and goods, go to the government's StopFakes website or call 866-IPR-2060. To learn more about what the government and businesses are doing to combat counterfeiting, visit www.stopfakes.gov.
