Smart & Biggar Principal François Larose recently spoke with La facture about secondhand luxury accessories sold as "authentic", but that turned out to be counterfeit.
The seller, Salem Moussallam—known as "Sammie the Stylist," a celebrity stylist—makes it difficult to obtain a refund, according to clients, even with proof that the purchased item is a counterfeit. He maintains that his items are legitimate, sometimes backed by a certificate of authenticity produced either by his own company or by a third party. Faced with his refusals to refund their money, many customers have turned to online forums or social media to share their stories. A source claims Mr. Moussallam offers customers a refund if they sign confidentiality agreements, agree to delete their social media posts, and return the item(s) in question.
Of this practice, François states, "[i]t seems a bit excessive to me to force people to sign confidentiality agreements. Why? To cover up the fact that the consumer has been wronged? To get another chance to keep running a counterfeiting operation? [...] It's bullying, if you ask me."
A person who commits such an offence could face up to five years in prison and a fine of up to one million dollars - per offense. Some customers interviewed by La facture have already contacted the authorities, without much success.
It's just like Wack-A-Mole; once you get one, it pops up in another hole. That's often what we see in [regulating] counterfeiting cases.
-François Larose
Consumers who believe have been duped by a counterfeiter and sold a counterfeit product may also turn to the brand-owner who may investigate and initiate enforcement proceedings against the counterfeiter.