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How Chanel's Counterfeit Lawsuit Changes Luxury Resale

July 14, 2017 2 min read

How Chanel's Counterfeit Lawsuit Changes Luxury Resale
This month, a massive step was taken in making the online fashion and luxury consignment world a lot safer. In fact, Chanel won a lawsuit against internet-giant Amazon over the counterfeit items of brands like Chanel that were allowed to be sold using their site. One of the major risks that come with buying a used product or anything online is knowing where it really comes from and if, in fact, it's authentic. Here at Couture USA, we specialize in authenticating luxury items and making sure that everything we sell is something we can back up. But the rest of the internet may not have those qualifications or follow those standards. Amazon, for example, has been allowing individual sellers to trick shoppers into thinking they've found an amazing deal online, when in fact they've just accidentally purchased a counterfeit item. It should be clear that Amazon themselves aren't selling counterfeits, but it appears that the company has not followed guidelines and restricted individual sellers who use Amazon as a platform from selling counterfeits.  

A Win For Chanel

Imagine the problems that could come with a brand being inundated by fakes on the market. It happened to Louis Vuitton and led the brand to incorporate more complicated canvas patterns, now known as the Monogram and Damier canvas designs, to dissuade counterfeiters. And it's known that a flooding of the market in general, even with authentic items, can be disastrous to brands, which was showcased by the problems Michael Kors and Coach faced after their items filled retail stores like TJ Maxx. Chanel took on Amazon in a face-off that determined whether or not larger entities were responsible for their individual sellers and what items they were selling. The courts concluded that they are. Selling counterfeit items on websites like Amazon was confirmed to be unethical, just as the majority of us believed. Now, Amazon must monitor their individual sellers closely to ensure that counterfeits, dupes, or "replicas" aren't sold at all. It's not only a win for Chanel, but for luxury brands and resellers around the world.  

Why This Win Will Change The Luxury Resale Industry

For one of the first times, there is now a court decision on the books backing up the fact that counterfeit items cannot be sold. Sure, it's a no-brainer to most of us, but it's a profitable business for scammers and a huge loss for buyers. Looking at items on Ebay, Amazon, and other re-sale websites, it can be hard to differentiate between a shady individual seller and an actual business who also sells online. With time, we believe that this ruling will help weed our counterfeit-sellers across the web and make the luxury resale business a lot more trustworthy and accessible to online shoppers. In a way, this ruling is similar to the monumental and groundbreaking wins that brands like Tiffany & Co. and Christian Louboutin had when copyrighting their signature colors. And it's a step in the right direction that ensures luxury styles stay luxurious, and fashion-lovers won't have to worry about fakes the way they do now. Although it'll always be important to know how to authenticate a bag or at least look for major red flags, us at Couture USA will be celebrating this win!

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