Criminal Defense Lawyers

Avoiding Criminal Penalties for Unknowingly Selling Fake Goods

Avoiding Criminal Penalties for Unknowingly Selling Fake Goods

Selling counterfeit goods can lead to serious criminal penalties, even if you didn’t realize the goods were fake. As an online seller, it’s important to educate yourself on how to avoid accidentally trafficking in counterfeits. This article will discuss common defenses, legal implications, and steps you can take to reduce your risk.

Ignorance is Not Always a Defense

Under 18 U.S. Code § 2320, penalties can apply even if you didn’t knowingly traffic in counterfeits. Prosecutors only need to prove you were “deliberately ignorant” of the goods’ infringing nature. So even if you stick your head in the sand, you could still face fines or jail time.

That said, honest mistakes do happen. If you take reasonable precautions, you may be able to avoid charges or reduce penalties. Document your sourcing and authentication efforts. Show you did your due diligence before listing items for sale.

Civil vs. Criminal Penalties

Selling counterfeits can lead to both civil lawsuits and criminal prosecution. In a civil case, the rights holder sues for monetary damages. Criminal charges mean steep fines and even prison time.

Prosecutors tend to focus on willful, large-scale counterfeiting rings. But civil lawsuits can target accidental counterfeit sales too. Either way, you could end up paying tens or hundreds of thousands in penalties.

Your Customer Isn’t Safe Either

Think only sellers get prosecuted? Think again. Under CBP guidance, buyers can face civil fines or even criminal smuggling charges. So you could be exposing customers to legal jeopardy too.

Spotting Counterfeit Goods

How do you know if that designer handbag or luxury watch is legit? Here are some red flags to watch for:

Christine Twomey

2024-03-21

Just had my Divorce case settled 2 months ago after having a horrible experience with another firm. I couldn’t be happier with Claire Banks and Elizabeth Garvey with their outstanding professionalism in doing so with Spodek Law Group. Any time I needed questions answered they were always prompt in doing so with all my uncertainties after 30 yrs of marriage.I feel from the bottom of my heart you will NOT be disappointed with either one. Thanks a million.

Brendan huisman

2024-03-18

Alex Zhik contacted me almost immediately when I reached out to Spodek for a consultation and was able to effectively communicate the path forward/consequences of my legal issue. I immediately agreed to hire Alex for his services and did not regret my choice. He was able to cover my case in court (with 1 day notice) and not only was he able to push my case down, he carefully negotiated a dismissal of the charge altogether. I highly recommend Spodek, and more specifically, Alex Zhik for all of your legal issues. Thanks guys!

Guerline Menard

2024-03-18

Thanks again Spodek law firm, particularly Esq Claire Banks who stood right there with us up to the finish line. Attached photos taken right outside of the court building and the smile on our faces represented victory, a breath of fresh air and satisfaction. We are very happy that this is over and we can move on with our lives. Thanks Spodek law 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️

Keisha Parris

2024-03-15

Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.

Taïko Beauty

2024-03-15

I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence. Thank you team!

Anthony Williams

2024-03-12

Hey, how you guys doing? Good afternoon my name is Anthony Williams I just want to give a great shout out to the team of. Spodek law group. It is such a honor to use them and to use their assistance through this whole case from start to finish. They did everything that they said they was gonna do and if it ever comes down to it, if I ever have to use them again, hands-down they will be the first law office at the top of my list, thank you guys so much. It was a pleasure having you guys by my side so if you guys ever need them, do not hesitate to pick up the phone and give them a call.

Loveth Okpedo

2024-03-12

Very professional, very transparent, over all a great experience

Bee L

2024-02-28

Amazing experience with Spodek! Very professional lawyers who take your case seriously. They treated me with respect, were always available, and answered any and all questions. They were able to help me very successfully and removed a huge stress. Highly recommend.

divesh patel

2024-02-24

I can't recommend Alex Zhik and Spodek Law Firm highly enough for their exceptional legal representation and personal mentorship. From the moment I engaged their services in October 2022, Alex took the time to understand my case thoroughly and provided guidance every step of the way. Alex's dedication to my case went above and beyond my expectations. His expertise, attention to detail, and commitment to achieving the best possible outcome were evident throughout the entire process. He took the time to mentor me, ensuring I understood the legal complexities involved to make informed decisions. Alex is the kind of guy you would want to have a beer with and has made a meaningful impact on me. I also want to acknowledge Todd Spodek, the leader of the firm, who played a crucial role in my case. His leadership and support bolstered the efforts of Alex, and his involvement highlighted the firm's commitment to excellence. Thanks to Alex Zhik and Todd Spodek, I achieved the outcome I desired, and I am incredibly grateful for their professionalism, expertise, and genuine care. If you're in need of legal representation, look no further than this outstanding team.

Load more

Google rating score: 4.9 of 5, based on 736 reviews

• Prices that seem too good to be true
• Shoddy or inconsistent manufacturing
• Misspellings or grammatical errors on labels
• Incorrect logos, tags, or packaging

If you have suspicions, consult an authentication expert. It’s well worth the peace of mind.

Best Practices for Avoiding Counterfeits

Here are some tips to help avoid accidentally selling counterfeit goods:

1. Carefully vet your suppliers. Ask for invoices and proof of authenticity.
2. Inspect all merchandise thoroughly before listing. Compare to authentic versions.
3. Remove listings if a buyer or rights holder identifies an issue. Consult a lawyer ASAP.
4. Maintain thorough records on sourcing, vetting, and authentication.
5. Consider authentication services to verify legit brands before selling.
6. If the price seems too good to be true, it probably is. Tread carefully.
7. Watch out for common counterfeited brands like luxury, sportswear, electronics.
8. Brush up on anti-counterfeiting laws and consumer protection policies.

Staying vigilant takes work but reduces legal exposure. It also helps build shopper trust and protects your reputation.

What To Do if You Receive a Counterfeiting Complaint

Finding out you accidentally sold fakes can be scary. Here are some steps to take:

1. Immediately stop selling the item and inform previous buyers.
2. Apologize to the rights holder and offer to help remedy issues.
3. Ask your lawyer to contact prosecutors/plaintiffs on your behalf.
4. Offer to surrender remaining stock and sales records.
5. Consider settlement offers but consult your lawyer.

Taking quick, cooperative action shows good faith and may mitigate penalties. Most prosecutors care more about halting counterfeits than punishment.

The Bottom Line

While penalties can be strict, there are defenses available. Document your sourcing and authentication efforts. Show how you carefully vet suppliers and merchandise. Demonstrate good faith cooperation if issues crop up.

Staying vigilant is work, but pays dividends through reduced legal risk and better customer trust. Protect yourself and shoppers by keeping counterfeits off your virtual shelves.

No related posts.