What Superfakes Really Cost Us

Sydney Redden
Director, IP Enforcement, Global Innovation Policy Center, U.S. Chamber of Commerce

Published

August 13, 2025

They may look like the real deal, but luxury “superfakes” and designer “dupes” are anything but authentic. While dupe culture may seem like a harmless trend, the luxury counterfeit market is creating confusion about authenticity for consumers and has ties to dangerous criminal enterprises.

What’s happening: Once limited to shady street corners and obscure websites, counterfeit luxury goods have gone mainstream. Today’s superfakes are nearly indistinguishable from the real thing. They are sold through encrypted apps, shipped in branded boxes, and even promoted by influencers. Some cost thousands of dollars and are even convincing enough to fool experts. At the same time, dupes - lookalike products that mimic high-end designs without technically infringing upon trademarks - are flooding social media and e-commerce sites. A significant portion of high-quality fakes originate from factories in China, and Chinese-owned online marketplaces and social media sites have become central hubs in the global distribution of fake goods across all product types.

Why it matters: Superfakes are more than just a trend. They are a warning sign for the future of innovation, customer trust, and fair market competition.

For businesses, superfakes and dupes siphon sales, dilute brand value, and undermine years of investment in design and quality. Every dollar lost to counterfeiters is one that could have been reinvested into the workforce. Estimates show that the luxury industry directly employs 2.5 million people worldwide.
For consumers, the line between real and fake is increasingly difficult to see. Many shoppers are unknowingly paying premium prices for counterfeit luxury goods. Others are buying them deliberately. Either way, deceptive sales tactics by counterfeiters are eroding customer trust. Beyond financial costs, fake luxury products like fragrances and cosmetics often contain toxic chemicals that put customer health at risk.
For the economy, this trend fuels illicit trade. Many superfakes are produced in “ghost factories”, legitimate factories by day and counterfeit operations by night. Some are made using stolen manufacturing templates or insider knowledge. And the profits? They often support criminal networks that don’t pay taxes or follow labor laws.

We need to treat this issue like the serious economic threat it is. That means:

Enforcing intellectual property laws to the fullest extent in all jurisdictions.
Disrupting and dismantling counterfeit supply chains.
Educating consumers about the true cost of fake goods.
Embracing emerging authentication technologies.

Because when fake becomes normal, everyone loses - except the people breaking the rules.