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Are you being knocked off?

Published: Sunday, May 3, 2009

Updated: Tuesday, September 21, 2010 15:09

The retail industry is a world of disposable income, where a high luxury item can run on average $2,000. In Hammond, Indiana and especially at PUC this concept of disposable income seems almost laughable. Yet one can walk down the halls of and easily spot brands such as Chanel, Gucci or Louis Vuitton clutched in the hands or thrown over shoulders of students. Many of these things are probably knockoffs.

Terrorism, slave labor, job loss and organized crime are all illegal activities that may be supporting when buying counterfeit merchandise. By purchasing a knockoff, not only are laws being broken, but the purchases contribute to a $600 billion annual problem. By contributing to the counterfeit activity, support is given to an industry that does not pay taxes, which in turn means less money for government, hospitals, and schools like PUC. The IACC (International Anti-Counterfeiting Coalition) estimates that counterfeit merchandise is also directly responsible for the loss of more than 750,000 American jobs.

However the fashion industry is not the sole contributor to counterfeiting. Automotive parts, pharmaceuticals, food, software and even the entertainment industry are all affected by this growing epidemic. According to Gieschen Consultancy, a Canadian firm specializing in counterfeit-intelligence analysis, in 2005 the top 10 counterfeited brands were: 1. Microsoft 2. Nike 3. Adidas 4. Burberry 5. Louis Vuitton 6. Sony 7. Lacoste 8. Reebok 9. Viagra 10. Benson & Hedges.

According to the IACC, when buying a knockoff it is important to remember where the money is going and who will be affected. Factories that make counterfeits do not pay their employees fair wages or benefits, have poor working conditions and often use forced child labor. The profits of this industry have been linked to organized crime, drug trafficking and even terrorist activity. The purchases become part of a cycle in which money directly supports such activities, often unbeknownst to the consumer.

The Food and Drug Administration (FDA) estimates that counterfeit drugs account for 10 percent of all drugs sold in the U.S. The Federal Aviation Administration estimates that 2 percent of the 26 million airline parts installed each year are counterfeit, which equals approximately 520,000 parts. In 2003, the Motor and Equipment Manufacturers Association cited a variety of safety violations due to counterfeit auto parts.

It's hard to imagine how, with all of these dire consequences, this booming industry can get away with all that is occurring. Simply put, law enforcement has bigger fish to fry. Enforcement of anti-counterfeiting laws is the domain of the Department of Homeland Security. Given current security concerns, the work is mostly left on the sidelines. The laws of counterfeiting vary from state to state ranging from a slap on the wrist to a Class C felony. Vendors of these products do get arrested, but the law tends to look for the big importers and manufacturers rather than the street seller.

In the current economy it is understandable that people, especially students, are doing all they can to save money while staying fashionable. However, it's important to know that hard earned money benefits others as much as the consumer. By simply making sure what is being purchased is an authentic brand, one can actually help the economy, workers' job security and even save lives.

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