Counterfeiting in principle is one of the causes that have been destabilizing the economy. It might feel that only a small proportion of the population is indulging in this activity, but over a long period of time, it can cause considerable loss of revenue to the exchequer, hurting the genuine taxpayer.
Illegal Business Is Big Money
Besides being a condemnable activity, the manufacture of Chanel replica products is illegal as it violates the Intellectual Property Rights of the House of Chanel. It requires a lot of time, money, and genius to design a perfect handbag. An illegal venture overseas making cheap replica Chanel products and selling them for high profit would cause anger, frustration, and financial loss to the designer. Recently, laws have been passed in several countries making the sale of replicas a crime. In Europe, if you happen to be caught, even innocently, of carrying a Chanel bag that was thought to be a replica, you could be stopped by customs officials who could then confiscated it and fine you.
Counterfeiters And Terrorism
It might come as a shock to many that there have been cases where the money from selling counterfeit Chanel handbags could be used to support terrorist attacks around the world. This so-called “black market” in counterfeit Chanel replica products gives criminal organizations an easy resource for making illegal funds, which could then finance terrorist activities. Counterfeiting of branded goods is also associated with child labor, sweatshops, and a lot of other illegal activities. By buying these counterfeit products, you are encouraging and promoting illegal activities.
Social Repercussions In An Unstable Economy
It might not seem much to a consumer, but buying counterfeit Chanel handbags also causes the government to lose quite a bit of money in sales tax. This is because these organizations are based outside the country and do not pay sales tax like normal companies. This deprives the government of income that could be used to better society, educate poor children, and other social causes. They could also cause genuine law-abiding businesses to collapse because they would be unable to compete with the cheap prices of the counterfeit products. When these businesses go belly-up, people lose their jobs, and supporting the unemployed would then be an additional burden to the government. Thus, when you buy a counterfeit Chanel bag, it is a crime that affects everyone in the country, though it may not be apparent initially, but in the long run, it can cause irreparable damage to the economy.