Surge in Counterfeit via Luxury Consignment Websites

Luxury Consignments websites swelling the sale of fakes

DELORTAE AGENCY is the UK's first and leading luxury authentication and appraisal specialists and last year charted the biggest rise in counterfeit and fake luxury goods from consignment websites and looks to continue throughout 2016.

As consumers use the internet in search of a luxury handbag or accessory, the rise in consignment websites have increased to a prolific rate.

Many of the luxury brand handbags and accessories we examine are counterfeit, said Taelin Lambert Assistant to Delortae Agency Luxury Chief Authentication and Appraisal specialist.

Many are being purchased by UK consumers from consignment websites in both Europe and USA that claim the items they sell are from sellers that use their websites.

This upsurge is causing a huge problem for the UK luxury consumers who attempt to get their money back from these companies who hide behind the distance between the purchaser and the seller.

On the fake items we examine, Mr Lambert went on to say, "are not even the more sophisticated types and clearly are not the quality and sometimes even the design of the brand purported".

Many of these web sites claim to have 'in house authenticators' that will examine the item prior to being dispatched to the buyer by the seller. 

But the truth is, many are not checking the items as claimed because the consignment sites are allowing the items to be dispatched by the seller directly.

Delortae Agency, who is known and respected by major brands due to consistent commitment to brand protection world-wide, believe UK consumers are being targeted and often buyers do not even receive the items listed on the site but something of far less quality by using old style 'bait and switch' techniques.

Delortae Agency have been inundated by request from purchasers, not only from the UK, to appraise these fake items, and are appalled at the excuses buyers are facing when challenging these sites to get their money refunded.

There is no doubt that counterfeiters are using these consignment sites, who distance themselves from the consumer by stating that their members are listing the goods and have to confirm their authenticity, therefore absolving themselves from responsibility.

The 'Money Back Guarantee' is worthless as the consignment websites refuse to accept the item is counterfeit. 

So what can the consumer do? Having forked out a small fortune to purchase the item and additional shipping if they suspect they have bought a fake? We advise you try the following and then if only all else fails, consult a professional to assist with authentication as a last resort, try to avoid any additional charges, as companies will have a fee but you may be able to claim this back against the seller.

- If there is a 'Money Back Guarantee' get it confirmed in writing that it is 'no quibble' and the time for a refund is from when you receive the product and not from dispatch.

- Approach the website and request a refund in the first instance if you suspect the item is fake.

- If met with a refusal, remember you have the law on your side, and buy with supported third party payment merchant or Credit Card for additional buyer protection.

- Get your item professionally appraised and evidence confirmed in writing

This is a growing online problem from last year that we suspect will only increase throughout 2016.



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How to avoid on line websites selling counterfeit items this Christmas

It's getting to be a Cyber Monday tradition: as the biggest online-shopping day of the year approaches, the U.S. government seizes Web domains it suspects are selling counterfeit products. CNET's Edward Moyer explains in a post that this year's takedown netted more than 130 such sites.

That's nearly double the number of domains seized by the U.S. Department of Justice and the Immigration and Customs Enforcement division of the Department of Homeland Security on the eve of 2010's Cyber Monday. Still, determining just how prevalent counterfeit product sales are online is not easy.

A study by brand-protection company MarkMonitor estimates that businesses will lose $135 billion in 2011 because of fake merchandise sold online, as Katie Deatsch reported last January on Internet Retailer. I was unable to find the original report quoting that figure on the MarkMonitorsite.

MarkMonitor's claim has been challenged in this Mike Masnick post on TechDirt, as were other "statistics" quoted by U.S. Chamber of Commerce officials based on the MarkMonitor survey, which the Chamber of Commerce funded.

Everyday items receive the counterfeit treatment
A more reliable estimate of the economic impact of counterfeit products may be a study by the Organization for Economic Cooperation and Development, which claims nearly 2 percent of all products traded internationally in 2007 were counterfeit or pirated. This figure represents up to $250 billion in lost sales, and it doesn't include bogus goods produced and sold domestically, or "nontangible pirated digital products," which I assume include unauthorized computer games and music and video recordings.

A recent report by anticounterfeiting service OpSec Security found that fake products are commonly offered on business-to-business sites such as Alibaba, DHgate, Trade Key, and Made-in-China. OpSec claims a large percentage of the brand-name watches, toys, and home electronics sold on such sites are phony.

While Coach bags and other luxury items have long been a popular target of the counterfeiters, even such mundane products as extension cords, toothpaste, batteries, and maple syrup are being faked, as Kelli B. Grant explains in this SmartMoney post.

Sites offer tools and resources for spotting and reporting fake products
The key to avoiding phony goods is to remember the adage, "If a deal seems too good to be true, it probably is." To verify that a product offered on a Web site is legitimate, begin by checking the manufacturer's Web site for reports of counterfeit versions being offered for sale. Also verify the model number of the product and all components that ship with it, such as USB cables, operating instructions, and warranty cards.

For practice in spotting the telltale signs of a fake product, visit the International AntiCounterfeiting Coalition's Counterfeit Gallery, which displays images of various products and asks you to decide whether they're bogus or the real deal.

The International AntiCounterfeiting Coalition site lets you test your ability to distinguish legitimate products from their fake counterparts.

(Credit: Screenshot by Dennis O'Reilly)

The packaging of many counterfeit goods will include labels from certifying organizations such as Underwriters Laboratory (UL) and CSA International, although the copied insignia may be a slightly different color or design. Visit CSA International's Certification Marks page or the UL Marks page to compare the label's certification with the genuine article.

CSA International also provides a searchable Certified Products Listing and a database ofProduct Alerts & Recalls. Similarly, the UL site features information on the organization's authorized label suppliers.

The CSA site offers a Product Incident Report form you can use to notify the agency of a problem with a CSA-certified product. The equivalent for reporting glitches with UL-labeled products is the Market Surveillance Product Incident Report Form on the UL site.

An eBay seller's tips for avoiding counterfeit purveyors
The eBay auction site has a reputation for being a hotbed of phony merchandise. Not being an online-auction denizen, I defer to the advice offered by eBay seller Chrisid2303 for spotting illegitimate sellers who frequent the site (and others). Among her tips are to watch for sellers' claims of offering products from an "OEM factory," and not to trust Power Seller ratings.

eBay's own "Replicas, counterfeit items, and unauthorized copies" page includes a link for reporting listings that offer counterfeits or replicas.

In this Daily Mail post, Laura Moss takes an in-depth look at the prevalence of fake products on eBay. Moss concludes that the best way to make sure the product you're buying is legitimate is to make your purchase on the vendor's own site, or on one the manufacturer lists as an authorized reseller.

As that other adage states so wisely, "You get what you pay for." Let's hope so, anyway.

via cnet