Cracking down on goods counterfeiters

New York City Councilmember Eric Gioia is calling on the NYPD and the FBI to crack down on a thriving counterfeit goods industry that has left a particularly indelible mark amid the city’s financial woes.
Gioia, the Chairman of the Council Committee on Oversight and Investigation, pointed to a $1 billion loss in general tax revenue caused by the counterfeit goods industry, and said the industry siphons sales from legitimate businesses that have been hit hard by the troubled economy. Gioia also underscored the fire hazards posed by illegal storefront stalls and storage spaces for the contraband.
“It is an underground economy in broad daylight,” Gioia said in a statement, citing a 2004 report by Comptroller Bill Thompson that found that eight percent of all counterfeit products - which are oftentimes manufactured under poor conditions including forced labor and child labor - produced in the U.S. are sold in New York City.
A preliminary investigation by Gioia’s office revealed that 45 percent of stores on Manhattan’s Canal Street, from Broadway to the Bowery, appeared to be engaged in the explicit sale of contraband.
Labeling the area a “Wild West” of illegal goods, investigators reported being offered $80 Rolex Presidential watches - the genuine versions sell for up to $50,000 - and $35 Dolce and Gabanna handbags.
According to NYPD Commissioner Ray Kelly, in 2007 the city seized $25 million in counterfeit goods, about three times the amount it confiscated the previous year.
However, because of the economic recession and the holiday shopping season, Gioia is trying to reverse the trend. In addition to urging New Yorkers and tourists to patronize legitimate storefronts, he is calling for fines for selling illegal goods to be raised from $250 to $500 up to $1,000.
Gioia, whose actions were commended by the Greater New York Chamber of Commerce, said, “All businesses suffer when people buy counterfeit goods - whether it’s Macy’s in Herald Square, or stores on Queens Boulevard.”