American Society of Appraisers NYC Chapter’s Post

With the ongoing insurgence of counterfeit handbags and other designer products, "knockoff" luxury goods are getting harder and harder to differentiate from their authentic counterparts. Despite the shocking estimate of 80% of individuals unknowingly purchasing counterfeit items in their lifetime, many consumers are now intentionally investing in counterfeit goods due to the incessant increase of designer handbag prices. As luxury handbags continue to remain a status symbol for many, the expansion of the counterfeit market diminishes the value of these iconic accessories, harming the once coveted reputation of the designer handbag. ABC News: Superfakes: https://lnkd.in/euR9V3KG How to spot a fake designer article: https://lnkd.in/eMV7xgVH

👜 Here's another Hermes lawsuit for you, this time by consumers. 👠 👗 👓 US consumers are suing Hermes accusing the company of forcing buyers to spend thousands of dollars on other products before they can purchase a Birkin bag. 🤼 This is a class action that claims that Hermes only gives customers with "sufficient purchase history" a chance to buy a Birkin bag. 💰 The lawsuit says that "The nominal retail price of a Birkin bag is a façade, masking a hidden lottery system that forces consumers to purchase substantial amount of Hermes ancillary products to 'qualify' for the mere opportunity to buy a Birkin." 👜 Hermes called the lawsuit "far-fetched", but their previous statements made in the Rothschild trademark trial are being used against them. In that case, Hermes referenced their "mysterious waitlist" and the "extreme scarcity" of the Birkin that made it "a highly valuable covetable 'holy grail' handbag". 💥 Hermes certainly have done a good job at creating elusiveness around the Birkin and a feeling of exclusivity by inviting someone to purchase a Birkin. The court will need to decide whether this is an unjustified monopoly and prevents competition. ❓ What do you think? 👜 👜 👜 👜 👜 👜 👜 👜 👜 👜 #fashion #law #antitrust #litigation https://lnkd.in/e4DWaYds

After watching the video from ABC news about fake handbags and reading the article "How Counterfeiters Got Shockingly Good at Knocking Off Designer Handbags" by Victoria k. Hunt, my thoughts about counterfeit handbags were confirmed. Fake bags are tarnishing the luxury handbag market. The fakes are getting so good that whenever someone does spend thousands of dollars for the real version, there are going to be a lot of people questioning its authenticity. Fakes are so common now that a lot of the luxury handbags we see walking down 7 avenue or casually in passing, are most of the time fake. What is the point of paying for the real one when we have the option to buy a fake one for nearly the same quality and very little differences? There is no point.

In one of my classes we’ve been discussing counterfeit handbags, so I wanted to share my opinion. The counterfeit handbags industry is growing rapidly at an alarming rate, driven by a desire for luxury without the cost. Counterfeit handbags devalues the genuine items. TikTok has been fueling the demand for "dupes" that closely mimic luxury goods. I cannot scroll through TikTok without seeing a video of someone talking about a “dupe” or sharing a link to counterfeit designer items. Normalizing counterfeit purchases undermines the exclusivity and integrity of authentic luxury goods. https://lnkd.in/gayE4DkQ https://lnkd.in/gQ8Sc4u4

As a follow up to my earlier post regarding the recent lawsuit filed against Hermes, my colleagues Danielle Garno and Bill Katz dig deeper into the claims and relevant anti-trust laws in this article. “How the plaintiffs hope to prove that Hermès harmed the ancillary product market for products such as scarves, belts, leather goods, jewelry or home goods is unclear. Similarly, it is unclear how the plaintiffs will be able to show that the tying helps Hermès maintain a "monopoly." It is hard to imagine how the selling of so-called "ancillary products" helps Hermès maintain any kind of monopoly, even over a narrowly defined market for Birkin bags.” #luxurylaw #fashionlaw #hermes

Counterfeiting luxury handbags undermines the craftsmanship and creativity of original designs, often legally passing with minor differences. While these imitations, often called knock-offs, may pass as authentic to untrained eyes, they dilute the exclusivity of genuine luxury items. However, counterfeits inadvertently spark interest in luxury brands, fueling consumer obsession. Yet, this obsession comes at the expense of genuine appreciation for craftsmanship and ethical consumption in the fashion industry. WWD: https://lnkd.in/eUGiMuXZ ABC News: https://lnkd.in/enqx-fpq

Check out this post about antitrust law! #competition #antitrust

This is a fun (or not so fun) case for those interested in consumer rights and corporate responsibility A Mexican doctor bought two pairs of earrings online from Cartier, a French company specialising in high-end watches and jewelry. The diamond-encrusted 18k rose gold earrings were priced at 237 pesos because the online pricing missed three zeros. So he paid only $13 instead of $13,000 per set. Cartier claimed they did not have the product and tried to persuade the doctor to cancel the order, even sending him an email confirming the cancellation. But the doctor relying on the terms of sale, listed on the company's website, cited Mexico’s federal consumer protection law, which allows disputes over terms and conditions to be escalated to the Office of the Federal Prosecutor for the Consumers (Procuraduría Federal del Consumidor) for dispute resolution. I do not know the applicable law, but I guess if there was indeed a mistake in the listed price, the company did not have to honor it. Still, I see two main lessons from the case. The first is how the large superwealthy corporations deal with their customers. In this case, the company did the right thing in the end. It is not that they are going to declare bankruptcy because of this case. The second is the real price of the jewelry, especially jewelry sold under a brand name. It is always outrageously overpriced. If the case was litigated, maybe Cartier would have to show the actual cost of the items, including labour costs, and expose itself to scrutiny. Mind that many of the diamonds sold are "blood diamonds," obtained through cheap (slave) labour. Cartier admits sourcing their gems from areas of "high conflict". Their Code of Conduct says they do source their gems from areas of "high conflict", while being "committed to conducting their business in a responsible manner and supporting that commitment with concrete actions." Cartier says it abides by the Responsible Jewellery Council Code of Practices, under which "members shall use their best endeavours, commensurate with their ability to influence to promote responsible business practices among their significant business partners." I guess the "best endeavours" might not abide them to too much. And that is the REAL price that the customers pay. #humanrights #customerright #jewelry #blooddiamond #slavelabour #corporateresponsibility #sale #online #advertisement

Fake Handbags My thoughts? I personally think that this is a situation that is very hard to prevent because counterfeiting has been going on for ages. I also believe that with counterfeit handbags, its getting more harder to decipher from the real and fake. Buying luxury used to be one of those things that stood for status in wealth. Now you can literally buy a counterfeit handbag and nobody would question the difference ( Ex. RHOSLC star Jen Shah ) After a while, you have to ask yourself, what the point of buying luxury pieces when you can buy counterfeit bag?? https://lnkd.in/eqM4SVps https://lnkd.in/ecNjX8bp

Another fascinating legal case to follow! Or Vanitas vanitatum et omnia vanitas (vanity of vanities, all is vanity).   Hermès, a French luxury fashion house, is sued in a class action in California for “unfair business practices” related to how they sell their Birkin handbags. (the petition can be found at https://shorturl.at/beVZ4).   The suit alleges that Hermès sales associates offer Birkin bags only to those with a sufficient “purchase history” with the brand. Basically, their customers first have to spend substantial funds on “ancillary” Hermès products such as scarves, shoes, belts, jewelry, and homewares to be “deemed worthy” of purchasing a Birkin handbag. Actually, the purchase history does not secure the chance to buy the Birkin bag; it leads to a mere opportunity to be shown the bag in a private room, separate from the retail store. The plaintiffs argue that this violates US law and amounts to monopolisation of the market, restraint of trade, and unfair competition.   I wonder what (poor) Jane Birkin, who died last year, would make of the case. She was not only a great singer. She was a free thinker who did so much for feminism and radically defied societal expectations. But purely out of professional curiosity and interest in competition/anti-trust jurisprudence, I will closely follow the progress of this case. It is not because I love to get my hands on a Birkin bag!   On the other hand, I have to admit I sort of gave up on designer bags since the pandemic. The same pandemic that also took me down from heels to flat footwear and turned me into a slob...   Now I mostly carry a medium-sized backpack, purchased in Sports Direct - in sale (!) - three years ago. It serves me rather well. Despite the zipper getting a bit stuck lately, I do not think I will be initiating any legal action against them.   And as for Hermes tactics, I think there are far more effective methods the vendors can use to annoy their customers. Such as asking over and over: "do you have our app?"   Clearly, Hermès has not discovered that as yet.   Those who want to know more about the legal implications of the case, check out: https://lnkd.in/e9SMdPgu #law #litigation #antitrust #monopolies #competition #competitionlaw #jurisprudence #classaction #consumerrights #humanrights #Hermes #Birkinbag #apps