Holiday Shopping Highlights Counterfeiting Concerns

Holiday Shopping Highlights Counterfeiting Concerns
Shoppers walk past stalls at the 'ladies market' in Hong Kong, March 2. The open-air shopping magnet for tourists is listed on the U.S. Trade Representative’s 'Notorious Markets List' for counterfeit and pirated goods. MIKE CLARKE/AFP/Getty Images
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Warnings concerning counterfeit goods around the world have been heightened in anticipation of the holiday shopping season. 

Traditionally, luxury items such as handbags, watches, and jewelry have been the target of counterfeiters in Asia, but in recent years the counterfeiters have increased their creativity to expand to other products.

In Asia, the holiday season typically means increased food spending. According to a Hong Kong government release, an anti-counterfeit goods operation by the Hong Kong Customs and Excise Department on Nov. 16 and 17 uncovered several shops in the Kowloon area of Hong Kong selling fake rice. 

Imitation trademarks were found on 81 bags of rice with a value of around US$4,000 ($28,350 HK). The rice was due to be sold to the public and food outlets. The discovery was in response to a tip from consumers regarding the quality of certain rice sold. Despite preliminary analysis from a government laboratory claiming that the rice may not be harmful for consumption, there was no confirmation about how much of the product may be on the market and any long-term effects of consumption.

Some authorities are trying to combat counterfeiting with drastic measures. In the U.K., authorities have opened an entire storefront dedicated to raising consumer awareness about counterfeit items.

A new store at a shopping center near Yorkshire, U.K., called “Mimix,” will feature only fake items that were seized by customs. The outlet is attempting to draw attention to the vast amount of piracy occurring, and showcases products such as imitation Pandora-branded jewelry and fake Ugg boots with immensely discounted prices for display only.

Similarly, Bulgarian authorities organized an exhibition displaying counterfeit goods of famous trademarks in the Bulgarian capital of Sofia earlier this year. The Bulgarian customs agency seized a total of $2.5 million in trademark-infringing counterfeit goods in 2010.

The FBI has also issued warnings regarding online shopping, especially the risks of identity theft or purchasing counterfeit items online. The announcements coincide with the popular “Black Friday” shopping day, which is the day after Thanksgiving and marks the beginning of the Christmas shopping period.

The National Retail Federation expects U.S. holiday sales to increase by 2.8 percent in 2011, with more than one-third of the holiday shopping dollars to be spent online.