Protect Yourself From Fake Goods

Counterfeiting and piracy cost the U.S. economy between $200 billion and $250 billion per year, are responsible for the loss of 750,000 American jobs, and pose a threat to health and safety.

Counterfeiting and piracy have mushroomed in recent years. Since the early 1990s, trade in counterfeits has grown at eight times the rate of legitimate trade. Counterfeit-related seizures by the U.S. Customs and Border Patrol rose 125% during the past five years and are up 80% between 2005 and 2006.

Below are some easy ways to keep your business and home safe from fakes:

Scrutinize labels, packaging, and contents. There is no foolproof way to know the difference between a bargain and a fake, but labels and packaging can be revealing indicators. Look for missing or expired "use by" dates, broken or missing safety seals, missing warranty information, or otherwise unusual packaging. For larger purchases, such as mechanical or electronic equipment, seek reputable sellers and check serial numbers with manufacturer databases. You can also verify authenticity by comparing the manufacturer's contact information with another product's packaging, as addresses and phone numbers provided with counterfeit goods can be misleading.

Seek authorized retailers. Companies often publish lists of authorized retailers online or in packaging materials. If you are uncertain whether a retailer acquired its products from a legitimate distributor, ask for verifiable information about the source of the goods. Familiarize yourself with retail outlet suppliers and encourage your favorite stores to secure their
supply chains.

Watch for missing sales tax charges. Businesses trading in counterfeit goods often do not report their sales to financial authorities-a difference you may notice in the price you ultimately pay, particularly in states that collect sales taxes. If a purchase price does not appear to reflect the required sales tax or other fees, you should inquire further about the price and the source of that company's products before buying.

Insist on secure transactions. Operations dealing in counterfeit products are likely to disregard the need to transmit and store customer data securely. Avoid making a purchase if you are uncomfortable with the security of the transaction. When doing business online, make sure that your payments are submitted via Web sites beginning with https:// (the "s" stands for secure) and look for a lock symbol at the bottom of your browser.

Seek quality assurance in the secondary market. Avoid counterfeits in the secondary market by asking for details about your supplier's quality assurance processes. Reputable and reliable resellers have comprehensive inspection and authentication procedures and technicians to inspect the equipment they sell.

Report questionable spam and faulty products. If you receive spam that directs you to a suspicious Web site, report the information to the brand owner and to the authorities. If you suspect you've purchased a counterfeit or pirated product, notify the brand owner and contact the place of purchase for an exchange or reimbursement. Report unsafe products to the Consumer Product Safety Commission by calling 800-638-2772 or by visiting www.cpsc.gov/cgibin/incident.aspx.

Be vigilant when buying abroad. In certain foreign markets, counterfeit and pirated products are even more prevalent than in the United States. The U.S. Department of State publishes travel advisories warning you of known counterfeits appearing in your destination country (http://travel.state.gov/). Also, when shopping on international Web sites, look for trusted vendors that use identifiable privacy and security safeguards and have legitimate addresses.
Warn friends and family of illegitimate product sources. Word of mouth is one of the best ways to spread information about dangerous and defective products and those who sell them.

Trust your instincts. Beware of a purchase that is too good to be true. If you are uncomfortable with the circumstances of your purchase-such as price, venue, lack of a sales receipt or warranty information, or, most importantly, a vendor's unwillingness to answer simple questions about the source of the products for sale-just walk away.

To learn more about counterfeiting and piracy, go to http://www.stopfakes.gov/ or http://www.thetruecosts.org/.