Counterfeit Goods and Human Trafficking: Why knock-offs are never a good deal

July 26, 2024
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Jeremy Vallerand

In the mid-1990s, Oakley released the Eye Jacket sunglasses. They were all the rage. Their ad even featured Michael Jordan. 

I was a young teenager who didn’t care much for name-brand things, but I really wanted those sunglasses. That summer, our church youth group was visiting a church in Mexico, and we were driving through Tijuana. We stopped for a lunch break and discovered a small booth selling Oakley Eye Jackets for a fraction of the retail price. We were so excited that several of us bought them. The excitement didn’t last long. We quickly realized that they were not real Oakleys. First, the word “Oakley” rubbed off. Then, the paint started flaking off. Then the lenses fell out, and frames cracked. Before long, we were calling them “Joke-leys” instead of Oakleys. We had purchased counterfeit goods.

What I didn’t know back then was that there was a direct link between counterfeit goods and human trafficking. The people and businesses producing counterfeit goods are breaking the law (usually many laws) and trying to evade enforcement. It’s no surprise that those same businesses, since they are already operating below the law, are often also using slave labor or child labor and exploiting their workforce in many other ways. Here’s how some of the governments around the world describe it:

The International Criminal Police Organization:

“There is a clear link between illicit trade and other types of crime, such as human trafficking, drug trafficking, corruption, bribery, and money laundering. Illicit trade damages the global economy and harms public health worldwide. All regions of the world and all industry sectors are affected.”1

United States Customs and Border Protection:

  • “Purchasing counterfeit goods often supports criminal activities, such as forced labor or human trafficking.”2
  • "Not only are counterfeit goods produced in unregulated and potentially exploitative environments in foreign countries, but the profits from their sales provide a funding stream to organized crime."3

United Nations Office on Drugs and Crime:

  • “Groups such as the Mafia and Camorra in Europe and the Americas, and the Triads and Yakuza in Asia have diversified into the illicit trafficking of counterfeit goods, while at the same time being involved in crimes varying from drug and human trafficking, to extortion and money laundering.”4
  • “The illicit trafficking of counterfeit goods is often linked to other serious crimes. Europol has warned that counterfeiting is an increasingly attractive avenue for organized crime to ‘diversify their product range.’ Evidence suggests that criminal networks use similar routes and modus operandi to move counterfeit goods as they do to smuggle drugs, firearms, and people.”5

Last month, US Senators Chris Coons (D-Del.) and Chuck Grassley (R-Iowa) introduced a bipartisan resolution recognizing the month of July as National Anti-Counterfeiting and Consumer Education and Awareness Month.6

I’ve seen several articles and social media posts recently warning customers to be on the lookout for fakes. The issue has been getting more news coverage as well.7 In fact, late last year, New York City authorities made the largest-ever seizure of counterfeit goods valued at over $1 billion.8 Most social media posts and news articles that address this issue share about the risks to consumers (like fire risks from uncertified electronics, health risks from sunglasses that aren’t actually UV protectant, etc.), and often they share about the economic harm to the businesses whose products are copied. But rarely do they remind customers that they may also be supporting human trafficking. Counterfeit goods are not a victimless crime. 

Remember, the next time you see a knock-off purse, watch, or a pair of Joke-leys . . . it’s never a good deal. 

By Jeremy Vallerand
Chief Executive Officer & President of Atlas Free

Sources:

  1. INTERPOL. “Illicit Goods - the Issues,” n.d. https://www.interpol.int/en/Crimes/Illicit-goods/Illicit-goods-the-issues.
  2. U.S. Customs And Border Protection. “The Truth Behind Counterfeits,” n.d. https://www.cbp.gov/trade/fakegoodsrealdangers.
  3. Today, Usa. “New York Authorities Make ‘largest-ever Seizure’ of Counterfeit Goods Worth More Than $1B.” USA TODAY, November 17, 2023. https://www.usatoday.com/story/news/nation/2023/11/16/2-arrested-seizure-counterfeit-goods-nyc/71611259007/.
  4. UNODC. “The Illicit Trafficking of Counterfeit Goods and Transnational Organized Crime,” n.d. https://www.unodc.org/documents/counterfeit/FocusSheet/Counterfeit_focussheet_EN_HIRES.pdf.
  5. UNODC. “The Illicit Trafficking of Counterfeit Goods and Transnational Organized Crime,” n.d. https://www.unodc.org/documents/counterfeit/FocusSheet/Counterfeit_focussheet_EN_HIRES.pdf.
  6. Sen. Coons. “U.S. Senator Christopher Coons of Delaware,” June 14, 2024. https://www.coons.senate.gov/news/press-releases/senators-coons-grassley-introduce-resolution-recognizing-july-as-national-anti-counterfeiting-and-consumer-education-and-awareness-month#:~:text=%E2%80%9CCounterfeit%20products%20pose%20a%20serious,Consumer%20Education%20and%20Awareness%20Month.
  7. “MSN," Siefert, “Fake Botox, Knock-off Ozempic Seized by Border Protection Officers in Ohio," and Sims, “U.S. Customs And Border Protection Talks About The Dangers of Counterfeit Items at DFW Airport.”
  8. “New York Authorities Make ‘largest-ever Seizure’ of Counterfeit Goods Worth More Than $1B.” USA TODAY, November 17, 2023. https://www.usatoday.com/story/news/nation/2023/11/16/2-arrested-seizure-counterfeit-goods-nyc/71611259007/.