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New York moves to make buying of counterfeit products a crime

City proposes US$1,000 fine and up to a year in jail for customers who buy counterfeit products, but the bill runs into strong opposition

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A display of handbags in New York's Chinatown. Photo: AP

Bargain hunters from around the world flock to New York's Chinatown for bags, jewellery and other accessories bursting onto pavements from storefronts along Canal Street.

Among the goods are luxury items labelled Prada or Louis Vuitton or some other luxury brand - counterfeits sold for a pittance. In some cases, handbags going for US$2,000 on Fifth Avenue can be had downtown for, say, US$20.

They are seductive fakes.

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Until now, the law enforcement focus has been on catching the sellers. But if a proposed bill passes the city council, customers caught buying counterfeits could be punished with a fine of up to US$1,000, or up to a year in prison. The New York City legislation, if passed, would be the first in the United States to make the purchase of counterfeits a criminal offence.

Council member Margaret Chin, who introduced the bill, said at a public hearing on Thursday that counterfeits deprived the city of at least US$1 billion in tax revenue a year that could support community improvements. Further, she said, the counterfeit trade has been linked to child labour and the funding of organised crime and terror groups.

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"For tourists, it's fun, it's a bit of adventure," Chin said. "We have to let people know that if you engage in this activity you are committing a crime."

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