A Sign of the Economy: Counterfeiters

Counterfeiters no longer need look to Louis Vuitton or Prada for inspiration: In this economy, a faux pair of Ugg boots, imitation Ed Hardy sweatshirts, and other down-market deals—even toilet paper—sell just fine. Customers who have been weathering the recession are looking for such items, many of which are made on the cheap in China, in large quantity. The knockoff industry, in fact, costs American businesses an estimated $200 billion a year. What’s more, many of the newer items are sold at nearly retail prices—a result of the original items not being very expensive to begin with. “If the price points are somewhat close, some consumers get duped into believing they’re getting a real product,” Robert Barchiesi, president of the International AntiCounterfeiting Coalition, said. “They might be looking for a bargain, but a bargain to buy real goods.” The dupers are also lifting photos from official websites to make their counterfeit goods look legitimate.