I was amazed that they could be sold as they are in New York. It is illegal here and every now and then the police raid the markets and clear them out and there are only ever one or two anyhow.

There was a cable news guy the other day who brought a video team down to Canal Street to pester the shop owners about the designer fakes. What they showed was that as soon as the reporter approached a stall, the owner rolled down the gates.

Here is an article in todays WSJ about this subject:

Knockoffs Go Suburban

'Purse Parties' Are the Place
Soccer Moms Go to Buy Fakes;
'Bag Ladies' Face Arrest, Jail
By CAITLIN INGRASSIA
SPECIAL TO THE WALL STREET JOURNAL


Jane DeTorre gathered a group of friends and neighbors at her home in Middletown, N.Y., last month, to sip Shiraz, trade stories about their kids and do a little shopping.

This was no Tupperware party. The 30 or so women had come to this "purse party" to buy fake versions of the season's hottest designer handbags from labels such as Prada, Gucci, Kate Spade, Louis Vuitton and Coach. The bags, in their authentic form, sell in posh stores for as much as $735 for a Louis Vuitton Ellipse bowling bag; the knockoffs in Ms. DeTorre's living room sold for about $40 a pop.

"It's too frivolous to spend the money on an original," said Laurie Scott, a part-time hair and makeup stylist, as she nibbled hors d'oeuvres and checked out the purses. "There is money to spend on car payments and household bills."

Once limited to urban hubs such as New York's Canal Street, the counterfeit-purse trade has migrated to the suburbs. Hosted in homes from San Diego to Fort Lauderdale, Fla., purse parties are attracting a cross-section of enthusiasts, from soccer moms and lawyers to accountants and hairdressers.

Like most hostesses, Ms. DeTorre invited a group of friends and acquaintances, then called a dealer, or "bag lady," whom she'd heard about through friends of friends. The bag lady at this purse party, who declined to give her name, said she purchased her inventory from a counterfeiter in midtown Manhattan, then drove to Middletown to supply this party and two others in a single week, selling the handbags at an undisclosed markup.

As the hostess, Ms. DeTorre received the equivalent of 20% of the woman's $1,000 in sales that evening, in the form of free merchandise, including three bags and a wallet. Ms. DeTorre says she doesn't believe she did anything illegal by holding the purse party. "I didn't sell any bags, and no money [was] exchanged [through] my hands," she said. "The bags and wallet I acquired were a gift for opening my home to the party."

The illicit yet hugely popular parties have become a lucrative source of income for the bag ladies who supply them. But it's a dangerous game. Although it isn't illegal to buy a counterfeit bag, it is illegal to sell one. Bag ladies have become the new targets of luxury-goods companies and law-enforcement authorities determined to stop the rampant spread of counterfeiting.

"These women are the new drug dealers," says Barbara Kolsun, senior vice president and general counsel for Kate Spade, owned 50% by Neiman Marcus Group Inc. "And they're all over the U.S., from Kansas City to Florida. They're everywhere."

Local police are starting to crack down. Arriving at a purse party last month in Port St. Lucie, Fla., Jill Pitkiewicz, 32 years old and unemployed, was arrested and charged with possessing and selling counterfeit goods and labels. According to the Port St. Lucie police, Ms. Pitkiewicz allegedly bought thousands of dollars in counterfeit purses and accessories, including fake Tiffany jewelry, on monthly trips to New York City, then sold the goods at purse parties along Florida's affluent Treasure Coast. Tipped off by Tiffany & Co. security officials, the police also got Ms. Pitkiewicz's datebook, which detailed a crowded schedule of 34 purse parties from late September to mid-December, at which Ms. Pitkiewicz allegedly took in a total of $69,948, said Det. Tom Nichols.

Ms. Pitkiewicz, who doesn't have a criminal record, faces up to five years in prison for each of the two felony counts. "Those are hefty charges for this incident," said her attorney, Juan Torres, of Fort Pierce. His client has entered a plea of not guilty.

Counterfeit suppliers are no longer limited to New York, police say. Most of the purses are made in Asia or in Mexico, then smuggled into the U.S. and sent to far-flung dealers. "Every area has their own supply. Philly, Washington -- every city -- has their own black markets," says Stuart Drobny, president and owner of Stumar Investigations, a Philadelphia private-investigation firm that represents more than 15 luxury-goods companies.

Law-enforcement agencies often get tips from luxury labels. A few weeks ago, Kate Spade's Ms. Kolsun recalls, she notified law enforcement about a Rochester, N.Y., bag lady who was making so much money at purse parties that she bought a Lexus with cash. Closely held Kate Spade doesn't reveal sales, but for every legitimate sale, Ms. Kolsun says, it counts a comparable sum lost to counterfeiters -- as much as $70 million dollars a year, she estimates. "Counterfeit hurts our business. It hurts our brand. It also hurts our economy," she says. "Women that buy cavalierly should think about that."

Likewise, Louis Vuitton, a unit of France's LVMH Moet Hennessey Louis Vuitton, is getting tough. It says it assisted in more than 3,400 raids last year, including purse parties from Connecticut to Alabama to California. Jean-Marc Gallot, chief executive of Louis Vuitton's North American unit, said in a statement, "Individuals purchasing fake goods -- whether on the street or at so-called purse parties -- don't appear to realize that their dollars support counterfeiters who are notorious for employing child labor, depriving governments of billions of dollars as well as supporting organized crime and terrorist activity."

"It's not like these are garage sales or bake sales for the Girl Scouts," adds Darren Pogoda, staff attorney with the International AntiCounterfeiting Coalition in Washington. "This is big money. And from a PR standpoint, it's tough when it's a soccer mom."

Back at the Middletown purse party, legal concerns didn't seem to damp spirits when the bag lady arrived. She set up two large folding tables, two coat racks (for displaying scarves and small bags) and opened up six colorful burlap sacks, each filled with about 10 purses, plus wallets and scarves. Guests browsed over the next two hours; most left with a bag, and some bought as many as three. Hot-sellers were knockoffs of Kate Spade's $195 "Sam Bag"; Prada's $265 silk hobo and Louis Vuitton's $735 Ellipse.

No one interviewed complained of guilt pangs. On the contrary, they said it was fun and exciting to find the most authentic-looking imitation. "I don't care that I'm buying fake," said Toni Hayes, owner of a Middletown beauty salon. "I see the bags at that price and I'm like, 'Oh yeah, oh yeah!' "

Several women said they used to travel to Manhattan to shop for the bags. "When we go to Canal Street we have to push and shove," said Ms. DeTorre. With the purse parties, "you have the comfort of being in your own home."

Updated January 16, 2004

Wow! Thanks.

Thanks, Kelly, that was interesting. Personally I don't think the selling of fakes could harm the industry that much because a lot of the people who buy fakes would not be able to afford to buy the real ones anyway. I also think the law enforcement officers time could be better spent catching criminals who are actually harming other people.

My feeling exactly, Marea!

That V.P. at Kate Spade had a lot of nerve comparing those party hosts as "the newDrug Dealers". Ridiculous!

I agree, Betty and Marea, time by the law enforcers would be better spent on actual drug dealers.

Kelly Wrote:
-------------------------------------------------------
> Here is an article in todays WSJ about this
> subject:
>
> Knockoffs Go Suburban
>
> 'Purse Parties' Are the Place
> Soccer Moms Go to Buy Fakes;
> 'Bag Ladies' Face Arrest, Jail
> By CAITLIN INGRASSIA
> SPECIAL TO THE WALL STREET JOURNAL
>
>
> Jane DeTorre gathered a group of friends and
> neighbors at her home in Middletown, N.Y., last
> month, to sip Shiraz, trade stories about their
> kids and do a little shopping.
>
> This was no Tupperware party. The 30 or so women
> had come to this "purse party" to buy fake
> versions of the season's hottest designer handbags
> from labels such as Prada, Gucci, Kate Spade,
> Louis Vuitton and Coach. The bags, in their
> authentic form, sell in posh stores for as much as
> $735 for a Louis Vuitton Ellipse bowling bag; the
> knockoffs in Ms. DeTorre's living room sold for
> about $40 a pop.
>
> "It's too frivolous to spend the money on an
> original," said Laurie Scott, a part-time hair and
> makeup stylist, as she nibbled hors d'oeuvres and
> checked out the purses. "There is money to spend
> on car payments and household bills."
>
> Once limited to urban hubs such as New York's
> Canal Street, the counterfeit-purse trade has
> migrated to the suburbs. Hosted in homes from San
> Diego to Fort Lauderdale, Fla., purse parties are
> attracting a cross-section of enthusiasts, from
> soccer moms and lawyers to accountants and
> hairdressers.
>
> Like most hostesses, Ms. DeTorre invited a group
> of friends and acquaintances, then called a
> dealer, or "bag lady," whom she'd heard about
> through friends of friends. The bag lady at this
> purse party, who declined to give her name, said
> she purchased her inventory from a counterfeiter
> in midtown Manhattan, then drove to Middletown to
> supply this party and two others in a single week,
> selling the handbags at an undisclosed markup.
>
> As the hostess, Ms. DeTorre received the
> equivalent of 20% of the woman's $1,000 in sales
> that evening, in the form of free merchandise,
> including three bags and a wallet. Ms. DeTorre
> says she doesn't believe she did anything illegal
> by holding the purse party. "I didn't sell any
> bags, and no money exchanged my hands," she
> said. "The bags and wallet I acquired were a gift
> for opening my home to the party."
>
> The illicit yet hugely popular parties have become
> a lucrative source of income for the bag ladies
> who supply them. But it's a dangerous game.
> Although it isn't illegal to buy a counterfeit
> bag, it is illegal to sell one. Bag ladies have
> become the new targets of luxury-goods companies
> and law-enforcement authorities determined to stop
> the rampant spread of counterfeiting.
>
> "These women are the new drug dealers," says
> Barbara Kolsun, senior vice president and general
> counsel for Kate Spade, owned 50% by Neiman Marcus
> Group Inc. "And they're all over the U.S., from
> Kansas City to Florida. They're everywhere."
>
> Local police are starting to crack down. Arriving
> at a purse party last month in Port St. Lucie,
> Fla., Jill Pitkiewicz, 32 years old and
> unemployed, was arrested and charged with
> possessing and selling counterfeit goods and
> labels. According to the Port St. Lucie police,
> Ms. Pitkiewicz allegedly bought thousands of
> dollars in counterfeit purses and accessories,
> including fake Tiffany jewelry, on monthly trips
> to New York City, then sold the goods at purse
> parties along Florida's affluent Treasure Coast.
> Tipped off by Tiffany & Co. security officials,
> the police also got Ms. Pitkiewicz's datebook,
> which detailed a crowded schedule of 34 purse
> parties from late September to mid-December, at
> which Ms. Pitkiewicz allegedly took in a total of
> $69,948, said Det. Tom Nichols.
>
> Ms. Pitkiewicz, who doesn't have a criminal
> record, faces up to five years in prison for each
> of the two felony counts. "Those are hefty charges
> for this incident," said her attorney, Juan
> Torres, of Fort Pierce. His client has entered a
> plea of not guilty.
>
> Counterfeit suppliers are no longer limited to New
> York, police say. Most of the purses are made in
> Asia or in Mexico, then smuggled into the U.S. and
> sent to far-flung dealers. "Every area has their
> own supply. Philly, Washington -- every city --
> has their own black markets," says Stuart Drobny,
> president and owner of Stumar Investigations, a
> Philadelphia private-investigation firm that
> represents more than 15 luxury-goods companies.
>
> Law-enforcement agencies often get tips from
> luxury labels. A few weeks ago, Kate Spade's Ms.
> Kolsun recalls, she notified law enforcement about
> a Rochester, N.Y., bag lady who was making so much
> money at purse parties that she bought a Lexus
> with cash. Closely held Kate Spade doesn't reveal
> sales, but for every legitimate sale, Ms. Kolsun
> says, it counts a comparable sum lost to
> counterfeiters -- as much as $70 million dollars a
> year, she estimates. "Counterfeit hurts our
> business. It hurts our brand. It also hurts our
> economy," she says. "Women that buy cavalierly
> should think about that."
>
> Likewise, Louis Vuitton, a unit of France's LVMH
> Moet Hennessey Louis Vuitton, is getting tough. It
> says it assisted in more than 3,400 raids last
> year, including purse parties from Connecticut to
> Alabama to California. Jean-Marc Gallot, chief
> executive of Louis Vuitton's North American unit,
> said in a statement, "Individuals purchasing fake
> goods -- whether on the street or at so-called
> purse parties -- don't appear to realize that
> their dollars support counterfeiters who are
> notorious for employing child labor, depriving
> governments of billions of dollars as well as
> supporting organized crime and terrorist
> activity."
>
> "It's not like these are garage sales or bake
> sales for the Girl Scouts," adds Darren Pogoda,
> staff attorney with the International
> AntiCounterfeiting Coalition in Washington. "This
> is big money. And from a PR standpoint, it's tough
> when it's a soccer mom."
>
> Back at the Middletown purse party, legal concerns
> didn't seem to damp spirits when the bag lady
> arrived. She set up two large folding tables, two
> coat racks (for displaying scarves and small bags)
> and opened up six colorful burlap sacks, each
> filled with about 10 purses, plus wallets and
> scarves. Guests browsed over the next two hours;
> most left with a bag, and some bought as many as
> three. Hot-sellers were knockoffs of Kate Spade's
> $195 "Sam Bag"; Prada's $265 silk hobo and Louis
> Vuitton's $735 Ellipse.
>
> No one interviewed complained of guilt pangs. On
> the contrary, they said it was fun and exciting to
> find the most authentic-looking imitation. "I
> don't care that I'm buying fake," said Toni Hayes,
> owner of a Middletown beauty salon. "I see the
> bags at that price and I'm like, 'Oh yeah, oh
> yeah!' "
>
> Several women said they used to travel to
> Manhattan to shop for the bags. "When we go to
> Canal Street we have to push and shove," said Ms.
> DeTorre. With the purse parties, "you have the
> comfort of being in your own home."
>
> Updated January 16, 2004

If you are in the Louis Vuitton Store, you're buying a real bag. If you're NOT in the store, you are buying a fake. THAT is how you tell the difference

While walking down Canal street you'll see people standing outside on cell phones, talking to people in the back of the stores. They are "lookouts" because they real stash of the best fakes are in these little backrooms. If you approach the front entrance of the store and just sort of hang out there for a minute looking like you aren't going to go in because you don't like what you see, they'll take you into the back.

There will be like 12 other people in this tiny closet like room buying purses. It's crazy! They're still fake, but they look a lot better than the ones out in the regular part of the store.

The knock-off trade poses an interesting ethical dilemma.

Should we buy fakes when we know, apart from the infringement of intellectual property involved, that the dollars spent on them might indeed go to furthering criminal activities such as the use of child labor and worse, with even the possibility of aiding terrorists?

A Louis Vuitton handbag might indeed seem overpriced at $700+, but that is the price. If you can't afford it, isn't it incredibly selfish and irresponsible to buy the $40 knock-off, given the baggage that comes along with it?

Few of us would probably go so far as to buy a fake at the very factory where children made these same bags. Nor would we happily hand over $40 to a known terrorist in exchange for that neat Kate Spade knock-off.

So why should it be any different simply because the act has been "normalized" by taking place at some friend's home where you join your pals for an innocent little shopping party?

I know what i would do.

The only question I have about any of this is, do the people who deal in knock-offs also make the $20 no knock-off bags? And if so, does that mean buying those also brings with it the same baggage as the knock-offs? In which case, maybe the only ethical thing to do is buy only bags that you can be certain come with a clean provenance. Provided you can afford them, of course.

I am interested in selling knock off purses in florida if anyone could put me in contact with a supplier please let me know my email is melanier32040@yahoo.com

see www.luxurymore.com they sell replica bags..many models.we bought.