National Geographic Traveler Magazine: "The Cost of a Fake"

[S2000 Driver]

The Cost of a Fake: Do You buy that knockoff or not? What to consider
By JEAN TANG
National Geographic Traveler
Personal Shopper
October 2007
p. 24

"You're in a Shanghai alleyway, and a vendor shows you a Rolex. It's $50--a fraction of the price of a genuine. What's the harm?

'You hardly have to leave your hotel to buy a counterfeit in Asia. It's become a part of the tourist experience,' says Tim Phillips, author of a new book on the subject.

Counterfeits are available in all the Asian markets, including Bangkok's Chatuchak, Hong Kong's Stanley, and Beijing's Silk Alley.

'China is far and away the world's biggest supplier,' according to Phillips, who notes that Japan is Asia's single exception.

The range of products runs the gamut, too. A shopper can find knockoff sunglasses (Oliver Peoples, Oakley), sneakers (Nike, Reebok), polo shirts (Izod, Ralph Lauren), and designer goods such as shoes (Manolo Blahnik, Jimmy Choo), clothes (Lilly Pulitzer, Miss Sixty, Prada), and jewelry (Tarina Tarantino necklaces). And anywhere you go, you are sure to find a knockoff Hermes Birkin bag, which Phillips calls a 'counterfeit icon.'

Identifying fakes: The only way to ensure the real thing is to buy in a branded store. 'If it's cheap or being sold in a market, it's certainly a fake,' says Valerie Salembier, of Harper's Bazaar, which publishes a shopper's guide to counterfeits ( http://www.fakesareneverinfashion.com ). Other giveaways are bad stitching, flimsy linings, misspelled logos, and handles that are glued, not stitched.

The risks: Penalties by Asian authorities on consumers buying fakes are little or none. Back home, the risks are more severe: If U.S. customs finds fakes, they can confiscate them. Consumers who then insist that they have the real thing are subject to applicable duties, 'often more than the cost of the item,' says Angela Mazza, a New York trademarks lawyer.

Consumers should also be aware of the potential impact of their buying decisions. 'Smuggling is typically done by an organized group. Proceeds sometimes go to dubious 'charities' in the Middle East. Watches and other intricate items require the dexterity of children, and conditions in those factories are abysmal,' says Mazza. 'There are documented cases of funds from counterfeit trade going to terrorist organizations,' adds Randall Rabenold of Vaudra, Ltd., a brand protection company."