The Negative Effects of Counterfeiting
Stephanie Villafranca
FTT 450
Professor Shephard
4/30/13
The Negative Effects of Counterfeiting
Abstract
Counterfeiting is an illegal action. There is a study that provides strong evidence as to why counterfeit items can affect not only the lives of the designers, but the everyday consumer. It costs 250 billion dollars a year, which causes people to lose their jobs. Its profit margin is larger than any other illegal business. (Crime Inc., 2010). Many people think that counterfeiting only hurts the designer and affects the economy financially, but what they do not realize is that this crime can personally harm the lives of them and their family. In a study I had found by Sara Marcketti and Mack Shelley, 244 fashion students at Midwestern University said they would pay for counterfeit goods. That number is alarming for many reasons, one main reason being the safety of the consumer. Based on personality traits among diverse consumers of different genders and backgrounds, young consumers who are of a wealthier class and who are self-conscience believe that branded items are of highest importance of them. However, it may be different for a young consumer who comes from a middle class or poor household, where buying a good which is counterfeit might not matter to them. (Bilal, 2012). This is where it becomes dangerous. Counterfeit sneakers might seem harmless, but the consumers don’t realize the physical damage that is being done to their feet. The most harmful form of counterfeit goods are fraudulent medicines. “The sale of fraudulent medicines from Asia to South-East Asia and Africa alone amounts to some 1.6 million per year.” (The United Nations office on Drugs and Crime, 2013). According to Marcketti and Shelley, authors of Consumer Concern, Knowledge and Attitude towards Counterfeiting is when a manufacturer creates a lookalike product, labels it as an original and passes it off as a true original. This is a worldwide phenomenon that accounts for 5%-7%
FTT 450
Professor Shephard
4/30/13
The Negative Effects of Counterfeiting
Abstract
Counterfeiting is an illegal action. There is a study that provides strong evidence as to why counterfeit items can affect not only the lives of the designers, but the everyday consumer. It costs 250 billion dollars a year, which causes people to lose their jobs. Its profit margin is larger than any other illegal business. (Crime Inc., 2010). Many people think that counterfeiting only hurts the designer and affects the economy financially, but what they do not realize is that this crime can personally harm the lives of them and their family. In a study I had found by Sara Marcketti and Mack Shelley, 244 fashion students at Midwestern University said they would pay for counterfeit goods. That number is alarming for many reasons, one main reason being the safety of the consumer. Based on personality traits among diverse consumers of different genders and backgrounds, young consumers who are of a wealthier class and who are self-conscience believe that branded items are of highest importance of them. However, it may be different for a young consumer who comes from a middle class or poor household, where buying a good which is counterfeit might not matter to them. (Bilal, 2012). This is where it becomes dangerous. Counterfeit sneakers might seem harmless, but the consumers don’t realize the physical damage that is being done to their feet. The most harmful form of counterfeit goods are fraudulent medicines. “The sale of fraudulent medicines from Asia to South-East Asia and Africa alone amounts to some 1.6 million per year.” (The United Nations office on Drugs and Crime, 2013). According to Marcketti and Shelley, authors of Consumer Concern, Knowledge and Attitude towards Counterfeiting is when a manufacturer creates a lookalike product, labels it as an original and passes it off as a true original. This is a worldwide phenomenon that accounts for 5%-7%
References: Saunders, M. Kurt, Berger-Walliser, Gerlinde (2011) The Liability of Online Markets for Counterfeit Goods: A Comparative Analysis of Secondary Trademark Infringement in the United States and Europe KasimTatić, MerimaČinjarević Wicker, Beth. (2008) The Low Down on High Fashion Fakes.Kentucky English Bulletin. Viet-Dung Trinh, Ian Phau (2012) The Overlooked Component in the Consumption of Counterfeit Luxury Brands Studies: Materialism - A Literature Review Contemporary Management Research Marcketti, Sara B., Shelley, Mack, C Bartow, Ann. (2011) COUNTERFEITS, COPYING AND CLASS. Houston Law Review. Stewart, Mary Lynn The U.S. Federal Bureau of Investigation (2002). Going Global: The Textile and Apparel Industry Lowther, (2004) Elias and Stim (2003). Going Global: The Textile and Apparel Industry Special Report (2003)