Sometimes, we just need a concrete example to remind us of how serious a problem is, and how pervasive.
Not too long ago, I talked with a tennis instructor who told me his club had shut down its pro shop. The pro shop, at its peak, had offered full-time employment for one person, and part-time employment for two or three others, depending on the season.
"It wasn't worth it to keep it open," my friend told me. "Everyone wants to buy their stuff online now, and if they buy it on eBay from one of those online auctions in China, they can get it shipped free."
Prior to the Christmas shopping season, I wrote about the problem of counterfeit sporting goods and the impact it has on American commerce. With cheaply made imitations of brand-name sporting equipment (including sports shoes and apparel, golf clubs and tennis racquets) being sold online and shipped internationally, U.S. retailers are hurting.
How much are they hurting? A lot, according to U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement. Even though in 2011, seizures of counterfeit and pirated goods were up by 24 percent over 2010, the domestic value for seizures in fiscal year 2011 decreased by five percent to $178.9 million and the manufacturer's suggested retail price declined slightly to $1.1 billion. Why? According to CBP, there has been explosive growth in overseas websites selling counterfeit goods, and Americans are using them like crazy.
We've already noted the way the trade in illegal sporting goods puts buyers at risk for injury from inferior equipment, but it also cuts down on American retail commerce, which ultimately costs jobs. It's something to think about the next time you're looking at an online auction that offers your favorite running shoes at a fraction of the price, and includes free worldwide shipping. It's not just numbers. It's people and their livelihoods.
The problem of counterfeit goods isn't anything new; we know that. Dealers have been selling fake Rolex watches on street corners for years. But with the rise of e-commerce, we're just waking up to the damage it can do here at home, in an economy that has been hit hard by all sorts of global forces.
Want to help? You can, and not only by buying from local retailers. If, on your Internet travels, you come across a site where you think counterfeited goods are being offered, CBP makes it easy to request an investigation. They offer an "e-allegation" (is that a great term or what?) - an online trade violation reporting form you can fill out. Send it in and they'll check it out. You can even submit it anonymously.
It's too late for me to help my friend's store, but it's not too late for all of us to take action on the larger problem.
