Essay on Counterfeit Items Cause Economic Damage

As globalisation brings in new and various products, counterfeit goods also spread quickly. This has a negative influence on local retailers and trademark owners by taking away part of their local market share, taking advantage of the designs of a brand’s

The reasonable person should be taking reasonable care for example, an ordinary consumer would check if pet food marked 'NIKE' is actually Nike or not. However, in this instance, the average person would safely assume that the products were marketed by Nike and Conduct is misleading.

This is when the seller deliberately makes false statements of goods and this would be called fraud which is a criminal offence. Example of this would be someone selling a fake Apple watch and told the buyer that’s its real when it’s not. Under the Act, the court would fine the person that sold the watch. The customer that is affected would be able to cancel the contract and claim their money back.

“Aleah, that is so ugly,” my friends exclaimed as I eagerly pulled out my brand new pants from their perfectly packaged shipping box. “But they’re Michael Kors!” I argued, as though it increased their appeal. The truth was, the price tag read $78.00, and they were completely see through. Within society, there are numerous people who spend thousands of dollars on designer clothing that is not considered attractive street fashion or good quality. Often, the reason clothing is priced highly is because it includes a logo to advertise the brand and proclaim that it is “the cool thing to wear” while pressuring surrounding people to buy from the same designer as an attempt to become cool as well.

Lastly, cases outside the Sixth Circuit have ruled that products other than knockoffs can create downstream confusion. The courts in Lois Sportswear and Payless both are examples of cases where non-knockoff products created downstream confusion. Lois Sportswear, U.S.A., Inc. v. Levi Strauss & Co., 799 F.2d 867, 872 (2d Cir. 1986); Payless Shoesource, Inc. v. Reebok Int’l Ltd., 998 F.2d 985, 987 (Fed. Cir. 1993). In Lois Sportswear, the court explained that the confusion occurred when a consumer saw the familiar stitching pattern on the defendant’s jeans and associated “the jeans with appellee and that association influence[d] his buying decisions.” 799 F.2d at 872. The court makes no mention nor implies that the defendant’s jeans were a knockoff of plaintiff’s jeans. Similarly, in Payless, a case in the federal circuit, Reebok contended that “[post-sale] confusion occurs . . . when a consumer observes someone wearing a pair of Payless

Imagen the price of something such as a case of water that normally sells for $10-$12. Now imgen that same package of water selling for $99. Hard to believe? It’s a real thing that happens to people in the world. This real world thing is called price gouging and it happens more times than you would think. Price gouging happens in times of need when people run out of supplies such as food, water and other needs price gougers buy items for low prices then resell them for much more than what there worth. They pretty much steal from the people they sell items to by giving them an unfair price. Around 37 states have already put laws against price gouging bit there are still 13 states that don’t have laws to counter it. In some cases price

Customers will not deny or renounce awareness of, or obligation of, the legibility of an item listed that has been described by that Seller as authentic/original. Sellers doing so will be reported to authorities should Shoprator deem necessary.

Violations that threaten legitimate trade comes in all shapes and items, "piracy is high in payoff and low in risk for both groups, often taking place under the radar of law enforcement"(Treverton et al, 2009 iii). Just this past Christmas there was and it still is a big deal about hoover boards. It is believed that some of the boards are counterfeit with cheap and unregulated parts, and these appear to be the ones catching on fire. You can actually view one catching fire on YouTube. Several schools and universities have made them illegal to ride on campus because of this danger. All kinds of products can be duplicated or a knockoff but carry a certain name brand, such as Citizen or Rolex watches and more of the common ones you may see

Bear in mind that the saying that buyers beware. It is possible to get fake items, but that is very rare.

Treadwell, J. (2011). "From the car boot to booting it up? eBay, online counterfeit crime and the

One story, about a mother purchasing Nike shoes for her son, the shoes costed $135.00. She specified that it took longer than stated to receive the item, and they were being shipped from China. She rechecked the ad and the description, it clearly stated made in America, this came as a surprise. When they finally received the merchandise it did not exceed expectations. So she took the shoes to a local retailer and they verified they were fake, not even worth $35.00. She then began to reach out to Etsy about the matter, and they were never acknowledged, in return, she was sent an email with a link for seller they didn’t not work. Team

Typically, these factories are located outside of the United States, and with cheap and readily available labor, the knockoff designs can be created in a matter of hours and shipped to stores months before the original version. These companies are able to replicate the original designs almost perfectly, and for much less money, as well. In turn, chain retailers like Bloomingdale’s, Urban Outfitters, and Forever 21 then purchase hundreds of these clothes and promptly sell them to consumers way before the original designs even have a chance to make their debut (Wilson). The biggest problem with this is that fashion design is an art form in itself, and with duplicates, the creative and original credit of the designers are lost. American consumers can no longer tell what garments in a store are original and which have been duplicated (“Stop Fashion Design Piracy”). From a moral perspective, this is essentially burying the recognition that independent designers deserve for their work.

Finally, LVMH must protect its brand against counterfeit and dilution. With the recent expansion of the internet and globalization, availability of products has grown to new heights. In order to keep the brand management that LVMH desires, it must tightly control the availability so not to dilute the market and lower the perception of their brand. Also with the increased knowledge and resources of counterfeiting, LVMH needs to keep a grasp on illegal goods. Not only are the goods becoming increasingly difficult to distinguish real from fake, but the channels of distribution of counterfeit products have increased. Europe customs believe that 75% of counterfeit luxury goods originated in China or Hong Kong. Online stores such as EBay also have seen a large amount

Despite counterfeit goods’ deceiving social perception, the act of manufacturing and the buying of counterfeit goods or copied products is highly destructive to the overall function of the global economy. On account of its appeal to those looking for a low risk, high profit system, many get involved in the distribution of illegal goods through source countries including China and transit countries like Egypt and Singapore, with the help of typologies such as parallel trading. Unbeknownst to the common people is the economic, environmental, and health risks that this process produces. In the sale of counterfeit goods, criminals manage to bypass tax revenues, decrease employment opportunities, exploit labor through low wages, decrease company liability, and misuse ingredients in pharmaceuticals which ultimately lead to a variety of intellectual property violations.1 Ultimately, it is in the best interest of the public to identify the tactics used by criminals in an attempt to repudiate detection, all while compromising company security and international, transborder authority.

According to Louis Vuitton’s parent company, French luxury goods maker Moët Hennessy, 90 percent of the Louis Vuitton bags sold on eBay are fakes (Carvajal). However, the auction site is by no means at fault for the knockoffs and should not be held liable for the counterfeit luxury goods sold on its website.