This week we came across several articles and Facebook posts from our followers about online advertisements promoting counterfeit products. The problem with these advertisements, beside the fact that they promote counterfeits, is that they are not monitored or regulated. A recent article cited Rosetta Stone, the language instruction software company, demanding that Google be held liable for presenting paid search ads that link to counterfeit sites. Rosetta Stone has had problems with those specific ads using their trademarked name “Rosetta Stone” and linking to a site selling counterfeit software.

Below is an example of an ad recently shared with us by one of our Facebook fans.  When the advertisement is clicked, it brings you to the obviously fake site selling discount designer products.

The main question is, should search engines like Google be responsible and held liable for paid search ads on their site? We asked our Facebook and Twitter fans:

• “If you're not part of the solution then you're part of the problem. Perpetuating the advert of such sites = enabling the practice"
• “They need to check out everyone they allow to advertise. Called quality control. Everyone pitch in!”
• “Tricky.”
• “Yes, Google and Facebook should both be held liable.”

Many brands are struggling with counterfeiters using their trademarked brand name or logo in their online advertisements to lure in consumers. This is a trademark infringement and something companies like Rosetta Stone are taking up with the government. Senator Judiciary Chairman Patrick Leahy prepares to reintroduce the Combating Online Infringements and Counterfeits Act and I am sure many brands will be interested in amending that bill to include liability of search engines. 

What are your thoughts on this issue?

Everyone knows that you can find fakes on Canal Street in New York City, but more recently a surge of counterfeits have been reported in flea markets across the country. It is nothing new to anti-counterfeiting organizations and law enforcement that you can find counterfeit clothes, beauty products or other accessories at these markets. With counterfeits becoming more predominant at flea market vendors, authorities have launched a nationwide crackdown on those that sell fakes.

According to a recent USA Today article, in December alone, customs agents seized $250,000 worth of items at a swap-meet in New Orleans, $350,000 worth of goods at a flea market in Las Vegas, and $150,000 worth of merchandise at another flea market in Solebury, PA.

(Photo of counterfeit goods taken from USA Today article)

There are angry shoppers who report counterfeit items once they realize they have been duped, but many flea market attendees don’t care that they are buying counterfeits. During the Philly raid at the Rice Market, one shopper told The Intelligencer, "Most people know, but who cares?" Another woman was quoted saying, “I think Homeland Security can find better things to do."

Counterfeiting is not a victimless crime. We talk a lot about child labor and sweatshops that sew the counterfeit clothes and handbags or copy the counterfeit CDs and DVDs, but consumers can be victims as well. Fake beauty products contain chemicals that don’t abide by health and safety standards. Faux fragrance often contain bacteria, urine and antifreeze. Counterfeit clothes can even be made with toxic dyes. All of these pose a serious risk to a shopper’s health. Think about the friends and family you could be harming if you give these products to someone as a gift.

The next time you are at a flea market and you spot a counterfeit, think about what your purchase is funding. Above all, if you spot a fake, report it to local law enforcement authorities.