Avoiding Counterfeit Items on eBay

How and why to steer clear of fakes

Years after the invention and popularization of DVDs and DVD players, some of the biggest films in the movie industry hadn't yet been released on DVD. Until recently, if you were an Indiana Jones fan, for example, you were stuck watching your favorite flicks on outdated VHS tapes, since the studio that produced the Indiana Jones films hadn't seen fit to release anything else.

If you were a particularly loyal fan and an eBay member, you may have been one of the thousands that discovered DVDs of the entire Indiana Jones series for sale on eBay, complete with subtitles, studio artwork, and DTS digital sound—selling very, very inexpensively. Many fans saw these DVDs on eBay and an online buzz was generated amongst some of the more naive audience members—eBay obviously had a line on products that weren't "out yet," and they had these products very cheaply! What a steal!

Except that the deal wasn't all that great.

Buyers of these DVDs quickly found that they weren't quite what they'd seemed to be. Shipped from Hong Kong or even innocuous places like Provo, Utah, these DVDs looked like the real thing until they were actually put into a DVD player. Then, buyers found that they were horrible quality bootlegs, copied from the same tired set of VHS tapes and produced on inferior equipment with low fidelity output.

In short, they weren't just fakes—they were bad fakes. Unfortunately, eBay plays host to its fair share of both good fakes and bad fakes of many of the most popular items in the world. Sometimes it's obvious that a listing is for a fake, counterfeit, or imitation item, but often it isn't. There are good reasons to want to know the difference.

Common Fakes and Why You Might Want To Avoid Them

Though you'll find counterfeit items (or "gray area" items) in many eBay categories, there are a few categories in which fake items are extremely common, despite eBay's attempts to crack down on unscrupulous sellers.

• Computer software. One of the worst offenders on the eBay site, the computer software category is unfortunately littered with counterfeit and pirated goods.
• Music, movies, and entertainment media. Electronic entertainment media of all kinds is commonly sold illegally on eBay, whether in the form of pirated/unlicensed copies, or in the form of import- or export-restricted goods.
• Designer goods. Designer goods in many shapes and sizes, including clothing, accessories, household goods, and even commercial art, is often sold either in counterfeit or pirated form on eBay.
• Collectibles and antiques. Many collectibles and antiques on eBay are sold in so-called "grey auction" format, in which the seller isn't quite clear about whether the item is authentic or not.
• Consumer electronics. Finally, a certain proportion of the consumer electronics items on eBay are either import- or export-restricted or sold in markets other than those for which they were intended by the manufacturer.

Given the items on this list, an argument can be made that counterfeits, fakes, and region-restricted items are at times good buys for consumers. After all, thanks to eBay, consumers in a given part of the world might be able to buy a product or good to which they might otherwise never have had access, or at a price that they might never otherwise have been able to afford.

Why might you as a buyer want to be careful about buying these types of goods? There are very sound and pragmatic reasons to exercise caution.

• Law enforcement and civil liability. In the case of items like pirated computer software, international enforcement activity is very high. Though it is unlikely that you'll find yourself in legal trouble just for making a single software purchase, it isn't impossible—and multiple purchases compound your risk of incurring severe penalties or liabilities.
• Functionality and support. As was the case with the counterfeit Indiana Jones DVDs, the quality of counterfeit products is often lower that the quality of genuine goods. Even when the quality is equal, manufacturers generally refuse to support counterfeit or grey market items in any way. You won't be able to get updates, warranty service, or even dial the product's help line if you have an issue.
• Investment value. By purchasing a counterfeit or grey-market good, you are investing your hard-earned dollars in an item that is intrinsically less valuable than the real thing, and that is correspondingly unlikely to retain value (or increase in value) at the same rate as the genuine article. In short, fake goods make bad investments.

Detect and report the fakes

If you're at all unsure of what you're getting or what your risks are in a transaction, buy the real thing. Unless you're setting out from the start to cut corners or save money by buying fake, and are willing to take on all of the risk and responsibility that comes with that decision, you'll likely be far happier with genuine goods from above-board sellers.

Of course, recognizing the difference can sometimes be difficult. It isn't, however, impossible, and if you're willing to err on the side of caution you can likely avoid ever finding yourself in the position of having paid for the genuine article and instead received a pale imitation. Here are some questions to ask yourself as you buy.

• Does it seem to good to be true? The number one indicator of fake or counterfeit goods is cost. Keep your eye out for and avoid goods that are selling at a significantly lower cost than seems appropriate, or at a significantly lower cost than other similar items on eBay. In short, the $15 Buy It Now auction for a $400 software package is probably not genuine, and the same goes for the camera that one seller seems to be selling for 50% less than all of the competition.
• Does it seem to good to be true? The number one indicator of fake or counterfeit goods is cost. Keep your eye out for and avoid goods that are selling at a significantly lower cost than seems appropriate, or at a significantly lower cost than other similar items on eBay. In short, the $15 Buy It Now auction for a $400 software package is probably not genuine, and the same goes for the camera that one seller seems to be selling for 50% less than all of the competition.
• Is it a real product in your market? Mass-market products for sale on eBay that you've never seen in local stores are likely not intended for your nation or region of the world, if they are available at all. This goes both for the half-price video camera (that you later find works only with European PAL-standard television sets, while you are in the US NTSC-standard market) or the aforementioned Indiana Jones DVDs being sold on eBay long before the studio released such a product.
• Is the seller cagey about the product and its origins? Sellers of authentic goods often use strongly indicative keywords and terms to encourage buyers to buy. Do look for words like "genuine," "authentic," "original equipment," "licensed," "legal," and "real," but take care to avoid pitfall phrases like "genuine compatible," "authentic reproduction," "provide your own license," or "legal in many areas." If in doubt, read and re-read the auction listing, and if still in doubt, err on the side of caution.
• Are other authenticating materials included? Though these items, too, can be counterfeited and/or faked, it never hurts to look for auctions that include a certificate of authenticity, a hologram-printed license certificate, a manufacturer's warranty card, or other authenticating materials. At the very least, be extra wary of sellers that sell without them.
• Should the seller have access to this material? Use your common sense about points like this one. A seller that lists shipping times from China while selling goods by a prominent American designer is not likely to be selling the real thing. If you can't see how a seller could have legitimately sourced the products in his or her auctions, there's a good chance that their source isn't legitimate at all.
• Does the seller's feedback indicate authenticity problems? Check the feedback of any seller you're considering buying from and be wary of indications that previous buyers have been unsatisfied about the legitimacy of the goods on offer.

If you're serious about buying legitimate designer, collectible, or custom-produced goods, consider buying from members of eBay's Verified Rights Online (VeRO) program. Though there are many, many legitimate sellers on eBay who aren't members of VeRO, buying from VeRO participants ensures that you're in the clear for many types of items. As a shopper, consider also reporting items that you believe to be counterfeit to eBay's VeRO team, taking care to include the item number of the listing in question.

None of this is meant to scare you away from eBay buying, even of international or unusual goods. Indeed, buying rare, unusual, and limited-release goods is one of the more rewarding hobbies that eBay shoppers engage in. If you're interested in protecting your investment and staying out of trouble, however, it is always a good idea to shop smart—and ask yourself these questions before you buy.

source : http://ebay.about.com/od/mistakestoavoid/a/ma_fakes.htm