Fake goods flood Canadian shops

BETSY POWELL & JOHN DUNCANSON - December 5th 2006.

The expert spotted the imposter immediately.

The tiny studs decorating the popular brand's pouncing mountain lion weren't "uniform," nor was the grade of leather up to snuff.

"I can spot a fake a mile away," sniffed Puma store manager J. P. Melo while inspecting the belt purchased for $50 a day earlier at Markham's Pacific Mall.

It's an international problem that's been called the world's fastest-growing crime wave. Counterfeit products represent at least 7 per cent of global trade, or about $500 billion annually.

This week, business leaders and police are gathering in Markham to discuss the magnitude of counterfeiting in Canada — reflecting the growing recognition that the problem is out of control and affects the economy and health of Canadians, said officials of a new anti-counterfeiting network.

Christmas shoppers flocking to the Steeles Ave. complex can find just about everything on their list, from watches, handbags and jewellery to cellphones, shark fins and furniture.

To some, the provenance may not matter. It fact, the prospect of cheap goods with a pricey brand name may be why they go to the mall in the first place. Police raids have given it a reputation as a haven for knockoff or phoney goods.

"We sell only original brand names. Counterfeit is not available," reads a store sign you don't normally see in retail outlets.

But the Pacific Mall is not unique. A growing list of bogus items can be found on store shelves across the GTA, in malls, flea markets, discount stores and even big retail chains, as counterfeiters become more skilled.

"Anything that's making money is either being ripped off or it's going to be ripped off, " said Sgt. Andris Zarins, of the RCMP's federal enforcement branch.

"It's not a question of what is counterfeit, but more what is not being counterfeited," added Joseph Clark, a consultant for the Global Congress on Combating Counterfeiting and Piracy.

And it's often hard to tell.

At the Puma store on Yonge St., Melo said the belt purchased at the Pacific Mall was a copy of a product the sporting apparel company carried a year ago. The brand's trademark red tag was looped through the buckle when it sat on the shelf but disappeared after the young store clerk wrapped the belt in tissue and put it in a bag — possibly so it could be used again.

So who cares if a belt isn't the "real" thing, especially if it's a good deal?

It's a question law enforcement people hear "over and over again," said Zarins, to which he responds that counterfeiting is "theft — that's the bottom line."

"Counterfeiters couldn't care less about any quality control. They don't care whether the thing really works or not. When you're talking electrical devices or pharmaceuticals or kids' clothing that isn't fire-retardant, they're just putting everybody at risk."

As examples, he points to Christmas lights, batteries and faulty electrical cords that aren't up to safety standards and are prone to catching fire. This year, Health Canada issued a warning about fake batteries, saying there have been nearly 90 incidents since 2000 when counterfeit-brand batteries exploded, 41 of them in toys. Eight children were burned. And counterfeit batteries can contain poisonous mercury.

The pharmaceutical market has also been flooded with fake drugs that simply don't do what the patients hope and expect.

Even the toys on a child's wish list can be dangerous: "You don't know if it's stuffed with stuff swept up off the floor, you don't know whether the thing is going to catch fire if it's near a heat source."

Or how about counterfeit children's clothing — "What if it's made of inflammable material?" Zarins said.

Fatal car and plane crashes have been tied to use of fake repair parts.

Counterfeiting is big business, and organized crime is increasingly behind it, said Clark, often moving it on traditional drug-smuggling routes.

Canadian border guards are not allowed to seize shipments, Clark said. They must call in the RCMP to do that. For that reason a lot of counterfeit goods get past the border.

And the goods aren't destroyed. In 2002, for example, $15 million worth of counterfeit Louis Vuitton, Burberry and other luxury goods were seized in Vancouver from China. The Crown didn't prosecute and the counterfeiters asked for their goods back.

Canada's record on this is so poor the International AntiCounterfeiting Coalition, which represents the interests of 150 companies and trade associations, has put Canada on a watch list, painting it as a mecca for counterfeit goods.

While police and governments are now taking the counterfeit issue more seriously, it will take education to help consumers understand the price paid for buying fakes, Clark said.

"It's out of control right now and unfortunately it's going to get worse before it gets better."

How can I protect myself from counterfeit goods?

From fake CDs, to fake perfume and jewellery, counterfeit goods are widely available across the UK.

Get the genuine originals and avoid the fakes with our simple buying tips.

Counterfeiting is a huge problem globally, with millions of counterfeit goods being produced and sold every year. It is estimated that up to 10% of perfumes and toiletries in the market place are fakes, along with 12% of toys and sports goods.

Counterfeit goods are deliberately produced to resemble well-known brands. Part of the reason for the increase in counterfeiting is availability of new technology. Modern computers, printers and scanners have all made producing fake logos and packaging much easier for criminals.

For many people, buying a counterfeit item can seem like a good way to purchase a designer item at a knockdown price. However, consumers often do not realise that part of the reason these goods are cheaper than the real thing is because they are badly made, and sometimes even dangerous. In the past, raids on counterfeit goods have found perfumes containing urine as a stabiliser and alcopops containing anti-freeze. Fake Tetley tea-bags have been also seized which contained metal filings, floor sweepings and mouse droppings.

Buying counterfeit goods can also have much greater consequences than people realise, and you could end up unwittingly giving money to organised crime and terrorist organisations; profits from some fake t-shirts have even been linked to the funding of the Al-Qaeda network. Counterfeiters also have a huge impact on legitimate businesses, which causes them to lose millions of pounds of revenue a year.

You are obviously far less at risk of buying counterfeit goods if you shop at well established retailers than from someone selling out of a suitcase in the high street. Remember that if you do decide to buy something from a street trader (pictured right), and later discover that the items are not what they appear to be, you will have no comeback as, unlike buying from a high street shop, you have no consumer protection.

If you are tempted to buy, some of the key items to be extra careful of include sportswear, designer label clothing, children's toys, perfume, cosmetics and champagne. You should also be wary when thinking about buying CDs and cassettes as these are often fakes, as are videotapes and DVDs.

Examine any items you are thinking of buying carefully. Poor quality labels and packaging on perfumes and cosmetics can often indicate that the items inside are not genuine. If you are unsure about a watch, handle the strap, fakes will often feel tinny when shaken. With counterfeit goods the logos and brand names are often poorly attached. Also be especially aware of any items which could become loose and choke or cut a child. Look for the BSI Kite and Lion quality marks which signify that the item has passed safety tests.

If you are buying CDs, DVDs and pre-recorded audio cassette tapes be wary of any with with poor quality inlay cards, no artist name on the cassette label or disc face and no outer cellophane wrapping. CDs that are not silver will be copies. Also look out for CDs, DVDs, and video cassettes without security holograms and photocopied labels.

Car parts are also frequently counterfeited, illegal and fake car parts circulating in the UK have been assessed as accounting for some 10% of the market. Authorities have seized fake suspension parts, brake pads and discs, and even steering linkages, all of which could cause a fatal crash if they failed.

With car parts it can be very difficult to spot a fake part. As counterfeiters can copy the design of genuine parts very closely, it is usually the materials used that differ. If you do have the opportunity to examine a part you should check it closely, looking for any holes and checking to see if the logo or packaging looks genuine.

By far the best way to avoid a potentially dangerous counterfeit car part is to make sure you buy from either a franchised dealer or a garage that is a member of a recognised body, such as the Retail Motor Industry Federation or the British Independent Motor Trade Association. It is also a good idea to check the local Trading Standards Office to make sure the company you are planning to buy from is listed.

Although good bargains can always be found it pays to be aware that if something seems too good to be true it probably is.