Connect with us

World

Inside the Rise of Luxury Fakes: How Influencers and VIP Gifts Sparked a New Counterfeit Market

Published

on

Inside the Rise of Luxury Fakes: How Influencers and VIP Gifts Sparked a New Counterfeit Market

Call her Sherlock Hermès. Ingrid Chua, a journalist and blogger behind the Bag Hag Diaries, started noticing a strange phenomenon back in 2019, mostly on Instagram and high-end resale sites. They were flooded with oddball luxury items—pouches, tote bags, and beach towels—priced at a fraction of, say, a leather purse. These goodies were touted as never-for-sale VIP gifts, treats handed to friends of the brand, influencers, or free-spending clients. Chua’s suspicions were piqued by the volumes on offer, perhaps 20 or more from a single seller who might also offer a wait list for the next delivery. “If you’re a VIP, you might get one or two things, but how do they have batch after batch of them? It was seriously shady,” she scoffs.

So, Chua started snooping, setting up fake Insta handles to query the sellers on that platform. It was obvious to her that most, if not all, of these items were counterfeit. When she started sharing screengrabs of her exchanges on her Instagram Stories, the abuse began. “I got threats, things like ‘We’re going to sue you, you’re making us lose revenue.’” Undeterred, Chua kept digging, even hiring a trio of photographers to analyze images shared as part of the sales pitches. Take the makeup pouch purportedly offered by Chanel Beauty as a thank you to certain customers that was pictured on one of the brand’s makeup counters. “Guess what? All three of them said it was superimposed on the image—there was no reflection in the vitrine,” she says.

Chua’s crusade is well-timed. Luxury brands have embraced the trappings of so-called clienteling with more gusto than ever, competing to outdo each other in their cosseting of VICs (Very Important Clients); keeping influencers onside the same way is vital, too. One now-commonplace tactic for both involves creating one-off, branded keepsakes that will be gifted rather than sold; these may be available only to certain buyers or are never even offered in the retail environment. There might be a leather wristlet, a key fob, or a small pouch; Prada sent limited-edition shirts to a small number of VICs as a Christmas gift, while Chanel could send a top buyer some throw pillows as a birthday shoutout.

Still, those who don’t receive such treats still want them and will pay handsomely for that freebie. “I often get sourcing requests for VIP gifts, usually Chanel ones—most recently, it was the free Chanel T-shirt that was sent with invitations to the latest Chanel show in Los Angeles,” says Gab Waller, who runs a business scoring hard-to-find luxury items for clients. In that case, Waller, who is based in California, happened to have a personal friend who received one and was happy to resell it. “It was a one-off exception, because 99 percent of the time, I decline the request,” she says. “With my flat-rate sourcing fee, the price could get high very quickly. And it’s hard for me to justify the resale price on an item that was essentially free. That doesn’t sit right with me.” The fact that most come via the resale market—and have murky provenance as a result—makes Waller even warier.

Advertisement

Courtesy of Ingrid Chua

Delphine Sarfati-Sobreira agrees. The Paris-based executive runs Unifab, or the Union des Fabricants, which effectively campaigns against counterfeiting on all fronts on behalf of 200 or so members, including Hermès, Yves Saint Laurent, and Balenciaga. She cites data that 52 percent of Europeans aged 15 to 24 bought a counterfeit product last year, and in France, just over a third of buyers unknowingly bought a fake online. “The difference between now and 15 years ago, when someone was press or a VIP client and received a gift, they will keep it,” Sarfati-Sobreira tells Robb Report, “Now, with the rise of influencers, they resell it on secondhand platforms. And then counterfeiters see that and decide to sell their own products the same way.” Influencers, she explains, both turned on a spigot of selling VIP gifts on the secondary market while driving up demand for them in the luxury-loving public.

“Gifts have been quietly regifted or resold forever,” says Susan Scafidi, “but in the era of influencers, luxury is being defined as access to experience, [rather] than to goods anyone can buy with enough money. And these items are now proof of that experience.” Scafidi is a Fordham University professor in New York City, with particular expertise in luxury counterfeiting and head of the non-profit Fashion Law Institute. She says these freebies are heavy with “cultural capital,” tokens of clout and access. That little bag on the front-row seat at a show is a heavy hitter for a certain demographic. “They appeal to people who wish they could have been there, and want to emulate the people who were,” Scafidi says.

The surge in branded items that have little to no value—a cotton T-shirt or plastic pouch rather than a leather bag, for example—has been driven by the clampdown in tax law, Scafidi explains, whereby freebies like this are taxable. (Last year’s Oscar gift bag, for example, would trigger at least $46,000 to the IRS, and came with a 1099 to make declaring that debt even easier.) Better, then, to offer something whose value is merely branding rather than the materials from which it’s made. Counterfeiting a logo, of course, is much easier than duplicating workmanship or high-quality hide. Scafidi herself points to a T-shirt sent out by a brand she declines to name citing professional concerns: “On the front, in big bold letters, was the logo and, still attached, was the American Apparel label, too.”

Scafidi adds that there’s a particular wrinkle in American law that makes faking these freebies even more appealing stateside. “U.S. law requires that a trademark be used in commerce to protect it. Something given away in a product category that a brand doesn’t ordinarily produce—a Champagne flute from a company that produces clothing and small leather goods, for example. Technically it wouldn’t be protected.” Household names, she continues, could pursue claims against brand dilution, but anti-counterfeiting controls are much harder to apply to anything that was, at least initially, given rather than sold.

Advertisement

There’s another reason driving the surge in sales of shoddy, or counterfeit, gifts: the explosion of resale sites like TheRealReal or Vinted. Unlike a traditional consignment boutique, which operated on a smaller scale often with regular consignees known to the owner, these are world-spanning businesses with aggressive ambitions to scale. See, for example, how Vestiaire Collective is now run by start-up superstar Max Bittner, whose first business sold for billions to Alibaba, or the blockbuster IPO four years ago from TheRealReal, which raised $300 million (though the shares, priced at $20 for the offering, now hover at barely one-tenth of that). “Once you give the average consumer out there control to post anything in a marketplace, you’re basically putting up a luxury Craigslist,” says Chua, “It’s a free-for-all and caveat emptor. You just have to hope not to get screwed.” Indeed, one reseller—in this case, the decades-old What Goes Around Comes Around in New York—just lost a lawsuit with Chanel around these very items. The French luxury house accused the shop of selling counterfeit goods and promotional items that were not intended for sale. The judge just ruled in Chanel’s favor over everything from trademark infringement to false advertising, landing the reseller with a $4 million bill for damages.

An authentic Chanel logo item (top) and a counterfeit one.

Courtesy of Ingrid Chua

London-based Winston Chesterfield runs his own luxury consultancy, Barton. He says the Internet-driven transformation of the secondary market is fundamental to the problem: “When you do a private show for your ultra-high-end clients, those spending more than $100,000 in a Mayfair townhouse, they’ll give a bag of goodies at the end of it. But the client isn’t interested in them—nine out of 10 people like that you speak to? They’ll give those to their PA or housemaid.” In the past, Chesterfield says, that pass-along treat would have been used or perhaps occasionally sold to a friend. Now, it’s a lucrative moneymaker on eBay, creating a secondary market that’s easily exploited by unscrupulous counterfeiters. Chesterfield echoes Scafidi’s idea that the current quality of these giveaways is also a factor. “They’re producing for the lowest common denominator, pap that the higher-end, higher-value clients don’t want and don’t need. It’s the marketing department taking the initiative, and it’s a little bit out of control.”

Brands, unsurprisingly, aren’t keen to engage on the topic, whether those resale platforms or the designer marques themselves. May Berthelot, who runs the anti-counterfeiting operation at Vinted and has shared social media screeds on this topic, declined to speak to Robb Report. Note, though, that platforms like that are increasingly banning VIP gifts from being offered for sale—the Bittner-run Vestiaire Collective, for example, will not sell “VIP gifts (items received at press or VIP events, items gifted by the brand, free gifts offered in-store as part of a purchase), or items not for sale (including items marked as Not for Sale, samples, packaging etc.).” 

Advertisement

Still, perhaps the best way to tackle the issue isn’t policing the sale but polluting the appeal. Harriet Quick cofounded Luminaire, a luxury sourcing start-up aimed at VICs. “I don’t think our clients are that interested in these items, the whole swathe of gifting that goes to influencers,” she says. “It doesn’t suit them, because it’s all a bit too hype-y.” Put simply, such items are both exclusive, and not very exclusive at all. Certainly, anyone trying to offload one online won’t be the original recipient. “The irony of this is that the VIP, that high-spending couture buyer somewhere like Dior or Chanel, probably just gives away the gift to someone or, quite frankly, throws it in the trash,” says Barton’s Chesterfield, of their tarnished appeal. “They’re very unlikely to bother taking pictures, writing up a description, and then chucking it online.”

Advertisement

World

‘If it expires, it expires,’ Trump tells NYT about US-Russia nuclear treaty

Published

on

‘If it expires, it expires,’ Trump tells NYT about US-Russia nuclear treaty
  • Trump appears little concerned with treaty expiration
  • Treaty expires on February 5
  • Putin has offered to keep limits if US does
  • China says it would not be ‘reasonable nor realistic’ to ask Beijing to join the treaty
WASHINGTON, Jan 8 (Reuters) – U.S. President Donald Trump indicated he would allow the last U.S.-Russia strategic arms control treaty to expire without accepting an offer from Moscow to voluntarily extend its caps on deployments of the world’s most powerful nuclear weapons, according to remarks released on Thursday.

“If it expires, it expires,” Trump said of the 2010 New START accord in an interview he gave to the New York Times on Wednesday. “We’ll just do a better agreement.”

Sign up here.

Arms control advocates fear the world’s two biggest nuclear powers will begin deploying strategic warheads beyond the pact’s limits after it expires on February 5, hastening an erosion of the global arms control regime.

“There are plenty of advocates in the Trump administration … for doing exactly that,” said Thomas Countryman, a former top State Department arms control official who chairs the board of the Arms Control Association advocacy group.

A White House spokesperson referred Reuters to Trump’s comments when asked if he will accept an offer, opens new tab made in September by Russian President Vladimir Putin for the sides to voluntarily maintain the limits on strategic nuclear weapons deployments after New START expires.
Trump said in July he would like to maintain the limits set out in the treaty after it expires.

The agreement limits the U.S. and Russia to deploying no more than 1,550 warheads on 700 delivery vehicles – missiles, bombers and submarines.

New START cannot be extended. As written, it allowed one extension and Putin and former U.S. President Joe Biden agreed to roll it over for five years in 2021.

Advertisement

Trump told the New York Times that China, which has the world’s fastest-growing strategic nuclear force, should be included in a treaty that replaces New START.

Beijing, seen by the U.S. as its main global rival, has spurned that proposal since Trump promoted it in his first administration, asserting the Russian and U.S. nuclear forces dwarf its arsenal.

“You probably want to get a couple of other players involved also,” Trump said.

The Chinese Embassy in Washington said it would be “neither reasonable nor realistic to ask China to join the nuclear disarmament negotiations with the U.S. and Russia.”

“China always keeps its nuclear strength at the minimum level required by national security, and never engages in arms race with anyone,” spokesperson Liu Pengyu said when reached for comment.

Advertisement
A Pentagon report last month said China is likely to have loaded more than 100 intercontinental ballistic missiles across its latest three silo fields and has no desire for arms control talks.

New START has been under serious strain since Moscow announced in February 2023 it was halting participation in procedures used to verify compliance with its terms, citing U.S. support for Ukraine in its fight against Russia.

The U.S. followed suit that June, suspending its participation in inspections and data exchanges, although both sides have continued observing the pact’s limits.

Reporting by Jonathan Landay and Jasper Ward in Washington; Editing by David Ljunggren, Rosalba O’Brien and Chris Reese

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Continue Reading

World

Venezuela teeters as guerrilla groups, cartels exploit Maduro power vacuum

Published

on

Venezuela teeters as guerrilla groups, cartels exploit Maduro power vacuum

NEWYou can now listen to Fox News articles!

Venezuela is teetering on the edge after the U.S. capture and arrest of former President Nicolás Maduro, as armed militias, guerrilla groups and criminal networks threaten a path toward stability, according to reports.

As interim President Delcy Rodríguez assumes control, backed by President Trump’s administration, analysts have warned that the country is completely saturated with heavily armed groups capable of derailing any progress toward stability.

“All of the armed groups have the power to sabotage any type of transition just by the conditions of instability that they can create,” Andrei Serbin Pont, a military analyst and head of the Buenos Aires-based think tank Cries, told The Financial Times.

“There are parastate armed groups across the entirety of Venezuela’s territory,” he said.

Advertisement

MADURO ARREST SENDS ‘CLEAR MESSAGE’ TO DRUG CARTELS, ALLIES AND US RIVALS, RETIRED ADMIRAL SAYS

Venezuelan President Nicolás Maduro, who, according to the State Department, leads the Cartel de los Soles, beside members of the Venezuelan Tren de Aragua gang in an apartment building in Aurora, Colorado. (Jesus Vargas/Getty Images; Edward Romero)

Experts say Rodríguez must keep the regime’s two most powerful hardliners onside: Interior Minister Diosdado Cabello and Defense Minister Vladimir Padrino.

“The focus is now on Diosdado Cabello,” Venezuelan military strategist José García told Reuters, “because he is the most ideological, violent and unpredictable element of the Venezuelan regime.”

“Delcy has to walk a tightrope,” said Phil Gunson, a Crisis Group analyst in Caracas.

Advertisement

“They are not in a position to deliver any kind of deal with Trump unless they can get the approval of the people with the guns, who are basically Padrino and Cabello.”

Since Maduro’s removal, government-aligned militias known as “colectivos” have been deployed across Caracas and other cities to enforce order and suppress dissent.

“The future is uncertain, the colectivos have weapons, the Colombian guerrilla is already here in Venezuela, so we don’t know what’s going to happen, time will tell,” Oswaldo, a 69-year-old shop owner, told The Telegraph.

WAS TRUMP’S MADURO OPERATION ILLEGAL? WHAT INTERNATIONAL LAW HAS TO SAY

Demonstrators critical of the government clash with the security forces of the state. After the last conflict-laden days, interim president Guaido, with the support of his supporters, wants to continue exerting pressure on head of state Maduro. (Rafael Hernandez/picture alliance/Getty Images)

Advertisement

As previously reported by Fox News Digital, armed motorcyclists and masked enforcers have erected checkpoints in the capital, searching civilians’ phones and vehicles for signs of opposition to the U.S. raid.

“That environment of instability plays into the hands of armed actors,” Serbin Pont added.

Outside the capital, guerrilla groups and organized crime syndicates are exploiting the power vacuum along Venezuela’s borders and in its resource-rich interior.

Guerrillas now operate along Venezuela’s 2,219-kilometer border with Colombia and control illegal mining near the Orinoco oil belt.

The National Liberation Army (ELN), a Colombian Marxist guerrilla group with thousands of fighters and designated a U.S.-designated terrorist organization, has operated in Venezuela as a paramilitary force.

Advertisement

FROM SANCTIONS TO SEIZURE: WHAT MADURO’S CAPTURE MEANS FOR VENEZUELA’S ECONOMY

Armed colectivos deploy across Venezuelan cities while guerrilla groups control borders following former President Nicolás Maduro’s capture. (Juancho Torres/Anadolu via Getty Image)

Elizabeth Dickson, Crisis Group’s deputy director for Latin America, said the ELN “in Venezuela … has essentially operated as a paramilitary force, aligned with the interests of the Maduro government up until now.”

Carlos Arturo Velandia, a former ELN commander, also told the Financial Times that if Venezuela’s power bloc fractures, the group would side with the most radical wing of Chavismo.

Colectivos also function as armed enforcers of political loyalty.

Advertisement

“We are the ones being called on to defend this revolutionary process radically, without hesitation — us colectivos are the fundamental tool to continue this fight,” said Luis Cortéz, commander of the Colectivo Catedral Combativa.

“We are always, and always will be, fighting and in the streets.”

Other armed actors include the Segunda Marquetalia, a splinter group of Colombia’s former FARC rebels. Both guerrilla groups work alongside local crime syndicates known as “sistemas,” which have ties to politicians.

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

The Tren de Aragua cartel, designated a foreign terrorist organization by the U.S., has also expanded across Venezuela and into Colombia, Chile and the U.S.

Advertisement

As reported by Fox News Digital, an unsealed indictment alleges Maduro “participates in, perpetuates, and protects a culture of corruption” involving drug trafficking with groups including Mexico’s Sinaloa Cartel, the ELN, FARC factions and Tren de Aragua, with most of the problematic groups named.

Continue Reading

World

Trump says meeting Iran’s ‘Crown Prince’ Pahlavi would not be appropriate

Published

on

Trump says meeting Iran’s ‘Crown Prince’ Pahlavi would not be appropriate

US president signals he is not ready to back the Israel-aligned opposition figure to lead Iran in case of regime change.

United States President Donald Trump has ruled out meeting with Iran’s self-proclaimed Crown Prince Reza Pahlavi, suggesting that Washington is not ready to back a successor to the Iranian government, should it collapse.

On Thursday, Trump called Pahlavi, the son of Iran’s last shah who was toppled by the Islamic revolution of 1979, a “nice person”. But Trump added that, as president, it would not be appropriate to meet with him.

Recommended Stories

list of 3 itemsend of list

“I think that we should let everybody go out there and see who emerges,” Trump told The Hugh Hewitt Show podcast. “I’m not sure necessarily that it would be an appropriate thing to do.”

The US-based Pahlavi, who has close ties to Israel, leads the monarchist faction of the fragmented Iranian opposition.

Advertisement

Trump’s comments signal that the US has not backed Pahlavi’s offer to “lead [a] transition” in governance in Iran, should the current system collapse.

The Iranian government is grappling with protests across several parts of the country.

Iranian authorities cut off access to the internet on Thursday in an apparent move to suppress the protest movement as Pahlavi called for more demonstrations.

The US president had previously warned that he would intervene if the Iranian government targets protesters. He renewed that threat on Thursday.

“They’re doing very poorly. And I have let them know that if they start killing people – which they tend to do during their riots, they have lots of riots – if they do it, we’re going to hit them very hard,” Trump said.

Advertisement

Iranian protests started last month in response to a deepening economic crisis as the value of the local currency, the rial, plunged amid suffocating US sanctions.

The economy-focused demonstrations started sporadically across the country, but they quickly morphed into broader antigovernment protests and appear to be gaining momentum, leading to the internet blackout.

Pahlavi expressed gratitude to Trump and claimed that “millions of Iranians” protested on Thursday night.

“I want to thank the leader of the free world, President Trump, for reiterating his promise to hold the regime to account,” he wrote in a social media post.

“It is time for others, including European leaders, to follow his lead, break their silence, and act more decisively in support of the people of Iran.”

Advertisement

Last month, Trump also threatened to attack Iran again if it rebuilds its nuclear or missile programmes.

The US bombed Iran’s three main nuclear facilities in June as part of a war that Israel launched against the country without provocation.

On top of its economic and political crises, Iran has faced environmental hurdles, including severe water shortages, deepening its domestic unrest.

Iran has also been dealt major blows to its foreign policy as its network of allies has shrunk over the past two years.

Syrian President Bashar al-Assad was toppled by armed opposition forces in December 2024; Hezbollah was weakened by Israeli attacks; and Venezuelan President Nicolas Maduro has been abducted by the US.

Advertisement

But Iran’s leaders have continued to dismiss US threats. Iranian Supreme Leader Ali Khamenei doubled down on his defiant rhetoric after the US raid in Caracas on Saturday.

“We will not give in to the enemy,” Khamenei wrote in a social media post. “We will bring the enemy to its knees.”

Continue Reading

Trending