Designer knock-offs taken in $25 million raid
Filed under: Ripoffs and Scams, Shopping
Earlier this week, police raided warehouses in New York City and Long Island, seizing over $25 million of counterfeit merchandise. The goods taken by the police included knock-off Nike shoes, Duracell batteries, Louis Vuitton handbags, and more. Two men running these warehouses were arrested, and the machines used to put fake logos on the merchandise were seized too.These knock-offs are typically sold by street vendors and at flea markets. Are you one of the many Americans who regularly buy fake designer bags, shoes, and more? Does a crackdown like this upset you?
The way I see it, these operations deserve to be shut down. I know that a lot of consumers justify operations like this because they want the designer name without paying the designer price. But the fact remains that the logos and the names are the property of the companies that own the original designs. Others should not be able to profit off their names without paying some fee or royalty to them.
This type of illegal profit might be fun and rewarding to the consumers, but it's not fair to the companies that have invested money in the brands and the advertising. This is not a victimless crime, no matter how you slice it. And I'm glad that the authorities take it seriously and do something to help protect the good names and reputations of the true owners of these brands.
Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.
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Reader Comments (Page 1 of 6)
4-18-2008 @ 8:48PM
sheilah said...
A great book to read on this subject is Deluxe: How Luxury Lost its Luster, by Dana Thomas.
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4-20-2008 @ 11:17AM
sue-z said...
For those of you who are buying the knock-offs~why? Because you can't afford to buy the real thing? Then why in the world would you want to buy the fake ones? So that everyone *thinks* you can afford a real one? Who are you trying to fool? If you are so ticked off at Louis Viutton because you think they are overpriced, please tell me why in the world you would want to *pretend* that you can afford their stuff? I can't afford Louis stuff, so I don't buy it. I don't buy the fake stuff either. I'm just not FAKE. Now, Dooney & Bourke I can afford, so I buy those. But for some reason these thieves are even making fake Donney stuff, and I can't wrap my head around why anyone would buy a fake Dooney for $40 or $50 when you can get one at Macy's for $100 on sale sometimes and they hold up FOREVER. I just don't get why you people buying the fakies want to pretend you're something you're not. Buying high-end merchandise is a priveledge that you just aren't entitled to.
4-20-2008 @ 10:38PM
bam said...
The book How Luxury Lost its Luster is a must read for anyone who is tempted to buy a fake anything. First off, the fakes look fake and cheap and are never as good as the real deal. More than that, most of these fakes are made in places like China, Thailand etc and it is young children who make them. They are made to work 16 hrs a day and at night they are tethered together and then to a table or chair so they cannot escape. The next time you are tempted to buy a fake Louis Louis or Chanel or whatever, think of the poor child whose blood, sweat and tears went into the bag. If you want one so badly, save your money or get the best real thing you can afford, or else hook up with a consignment shop and buy a used one. Better to have one real thing than 20 cheap fakes. think of those little hands and the greedy people who exploit those kids.
4-20-2008 @ 6:42AM
John said...
Oh, the poor companies losing money .. G/Damn crooks are the companies ... Good for "Knocks" Keep selling!!
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4-20-2008 @ 7:35AM
Ret said...
It's about time! The illegal handbags are showing up at craft shows. Two years in a row they have been at my Church's sale.
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4-20-2008 @ 7:42AM
LINDA said...
It is just like anything else. Merchandise is way over priced and I say good for the ones that are duplicating the same thing for pennies. Something has to give and it should be the greed that everyone is trying to get away with. We need more controll in America. Their is too much greed going on and people cannot afford this. Who the heck want's to spend $2,500.00 for a purse? They are not worth this kind of money and what is sad is they are getting away with it. They are the one's that should be put in jail.
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4-20-2008 @ 9:28AM
jane said...
So Linda, let's say you are opening a business. You take the time to design a logo (or pay someone to do it, creating a logo and image for your company is a lot harder than most people think), and after you have some success at your business, you see your logo on the sign of a competitor. Are you going to let it slide? Is it okay for the competitor because as you put it your "merchandise is overpriced you're trying to get away with greed"? Believe it or not, these companies like Nike and Louis Vuitton were the small guy once. They just built a reputable business and don't want competitors (which is what counterfeiters are, by the way) ripping off their name. I'm not advocating everyone should run right out and buy up $2500 handbags, but if you have earned the money and want to, and someone is selling them legally, that's their right.
4-20-2008 @ 12:07PM
heddyn said...
Ironically, Linda, it's the same greed that's driving the counterfitters to mass produce cheaply made vinyl knockoffs and selling them in volume for 40-50 bucks. And, it's the same greed that's compelling people like you and others to buy them off the street or in a church bazaar.
Watch where you throw those stones, girlfriend!
4-20-2008 @ 8:04AM
susan thomas said...
Wrong is wrong, thats stealing and if someone has $2,500.00 to spend on a purse its their money. Sheese if you got to steal it then you don't need it.
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4-20-2008 @ 8:06AM
tootie said...
Britney Spears must be getting cold.
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4-20-2008 @ 8:21AM
Giovanna said...
I will continue to buy knock offs any time I can. So what if someone makes 40-50 bucks. They obviously need it worse than the ones making 2500.00. If anyone has any knock offs, keep on keep'in on.
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4-20-2008 @ 8:30AM
Craig said...
Theft is theft. These name logo's are the property of the perspective companies, and are expensive in their own right to protect. While it is very true that it is expensive to own these name brand items, the simple truth lies in.....If you don't have the money, don't spend it on this. We, the consumers, vote with our dollars. Vote wisely, and spend your money on items that have quality, and value. And, if you can spend $2500 on a purse! Well....you're in better financial shape than I am. (or just plain foolish) I vote for the latter.
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4-20-2008 @ 8:37AM
Scott said...
Let me say something to all the people who think paying high prices for designer brands is a rip-off: You are not their customers.
People who chose to pay high prices for designer labels are doing so because they want a quality and exclusive product. When you buy a counterfeit, you are simply sapping away the reason for that customer to buy that Fendi, DG, or Louis Vuitton product.
While I know this is not going to draw much sympathy, but that fact of the matter is: if you knowingly buy a counterfeit product, you are a thief and you are stealing from the manufacturer. Worse than that, you are taking the exclusivity incentive away form people to buy designer products. So not only are you stealing their brand, but you are also helping to ensure that fewer people who can and would buy, will not because you have helped take away the desire for exclusivity that comes from buying a designer brand.
So for those of you that knowingly own fake designer products, enjoy it thief.
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4-20-2008 @ 8:54AM
Christine said...
Anyone that can afford a $2000 purse has no right to complain about someone that is working 2 jobs and buys a $20 look alike on the street. They are obviously out of touch with the real world if they are spending an equilivent of 2 months worth of groceries on a purse. As for the companies if they charged decent prices for their products this wouldn't be an issue.
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4-20-2008 @ 8:58AM
Rebecca said...
I have both products and the reason behind that is in my area there are places where it is safe to carry the real thing and there are places where you shouldnt for being a target for theift. Id much rather lose my knockoff Louie than my real Louie, and yes sometimes you have no choice about where you have to go, so dont advise me to not go to those kind of places. I can certainly tell the knockoffs apart from the real, so who is it really hurting?
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4-20-2008 @ 11:47AM
Caralee said...
You should learn how to spell it, then, it's Louis..
4-20-2008 @ 9:22AM
sweat said...
You are saying that it is not fair to the designers who created designer merhandise but, what about the people who work at sweats shops. How are they being treated? These woman are being beat, rape and if lucky getting paid between 3 to 10 cent for their hard labor. These designers set up sweat shops in other countries and make like they are unaware about what is going on.
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4-20-2008 @ 9:27AM
lin said...
#11. You obviously didn't go to college or get a degree and what my family chooses to do with our money is none of your business. You missed the main point of the article.
The main point here is that it is a fake knockoff using the copyrighted logo. The same goes for a book, a painting, Mickey Mouse, etc.
If it were your purse and you were making $200 a purse, I'm sure you'd be more concerned. It's like comparing a jaguar to a chevy. You get what you pay for.
And if you're working 2 jobs to pay your bills, you need to downsize your house and lifestyle.
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4-20-2008 @ 9:28AM
4csmom said...
Question? Would any of you who buy knock-offs walk into a LV or Coach store and shoplift a real purse? No, I doubt that you would. Well, by purchasing a knock-off, you are knowingly stealing from the store and the manufacturer. Are they worth the money? NO. However, neither is a Mercedes Benz when it does that exact same thing as a lower priced car. It is all relative.
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4-20-2008 @ 9:30AM
DMM said...
I will continue to buy knock-off as the 'designers' never make a single product the average american can afford, yet they want us to covet their stuff. I was in NYC this week and noticed the lack of street vendors with purses, FINALLY found one and got what I was looking for, for 25 bucks...Hey Louie, lower your prices and maybe we wouldn't have to!
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