As the holiday season approaches, American families are preparing to fulfill their loved ones’ wish lists. While shoppers focus on finding the perfect gift, bad actors are gearing up for their busiest season, too. Counterfeiters and hackers are all too aware of the uptick in sports merchandise sales over the December holidays and make a concerted effort to trick as many consumers as they can into buying fake versions of these branded products.
This year, the U.S. Chamber is proudly collaborating with Fanatics, a leading manufacturer and retailer of licensed sports branded products, and premier professional sports leagues—including the National Football League, National Hockey League, National Basketball Association, and Major League Baseball—to make consumers aware of the potential dangers of buying counterfeit merchandise as holiday gifts for friends and family.
Risks to Consumers
Consumers are at risk of serious cyber threats when shopping on fraudulent websites or other platforms that peddle fake goods. Online payments processed on unsecured websites expose purchasers to credit card theft, identity theft, and potential computer intrusion from malware.
Online counterfeiters can be sophisticated enough to create mirror, or “dummy” sites, that mimic known, legitimate online platforms and marketplaces. When they shop on these sites, customers think they are buying the real deal, but wind up receiving fake goods in the mail, receiving no goods at all, and/or realizing too late that their bank information has been compromised and is now in the wrong hands.
Ties to Organized Crime
In addition to exposing consumers to risk, counterfeiters often are engaged in other criminal activities. Large-scale law enforcement operations like “Operation Team Player”— which in 2022 resulted in the seizure of almost $100 million worth of counterfeit sports merchandise—reveal the involvement of sophisticated, transnational criminal networks, engaged in a variety of criminal activity ranging from money laundering to smuggling firearms. Purchasing counterfeit goods not only diverts funds from legitimate businesses but also directly supports these dangerous criminal networks.
Harm to the American Economy
Each year, the global trade of counterfeit goods across all sectors drains more than $460 billion from the global economy and siphons over 300,000 jobs from the U.S. market. Beyond the direct economic toll, counterfeiting undermines America’s capacity for innovation, undercuts the ability of legitimate retailers to succeed, and stifles economic growth.
Don’t Get Caught Offside
The U.S. Chamber of Commerce, Fanatics, MLB, NBA, NFL, and NHL are committed to working together alongside local and federal law enforcement partners to safeguard sports fans from the harms associated with counterfeiting. This holiday season, we recommend consumers follow these five tips for safe shopping to ensure that the gifts they give are genuine:
- Trust your instincts: If a deal seems too good to be true or an online advertisement links to a suspicious website, proceed with caution.
- Prioritize secure payments: Only shop on websites that begin with “https://” and display a lock symbol in your browser to confirm security.
- Examine every detail: If you place an order, carefully review order confirmations to confirm the merchant is the one with which you intended to transact. When your purchases arrive, inspect labels, packaging, and contents for high-quality logo reproduction, licensee information, and official holographic hangtags or labels affixed to the product or product packaging for signs that you have purchased licensed goods.
- Protect your data: Keep your devices updated with the latest cybersecurity protections and avoid suspicious websites that may conceal malware.
- Say something: Spread awareness about counterfeit goods among friends, family, and coworkers. If you encounter a fake product, report it to U.S. Customs and Border Protection (CBP) or the National Intellectual Property Rights Coordination (IPR) Center. Your actions can help make online shopping safer for everyone.
Counterfeit merchandise poses a significant threat to consumers and businesses alike, and the holiday shopping season provides the perfect cover for criminals to push fake products to unsuspecting buyers. By staying informed and vigilant, we can protect our families and communities from the risks of counterfeit goods. For more information on how to shop smart and avoid counterfeit products, read more articles below.
Stay safe, and have a joyous December holiday season.
About the authors
Tom Quaadman
Tom Quaadman develops and executes strategic policies to implement a global corporate financial reporting system, address ongoing attempts of minority shareholder abuse of the proxy system, communicate the benefits of efficient American capital markets, and promote an innovation economy and the long-term interests of all investors.