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Feds seize 17,000 counterfeit items in Twin Cities

Shoppers are warned to be on the lookout for fake name-brand items.

By DAVID CHANEN, Star Tribune

Last update: November 25, 2009 - 9:14 PM

Most people don't think twice when they pick up a package of AA Duracell batteries at their favorite neighborhood store. But if you see a cute little Energizer bunny on the label, it's gotta be counterfeit.

Batteries bearing the misplaced bunny were among more than 17,000 counterfeit items seized by federal agents from 21 metro-area stores last week.

The 129 brand names that had been copied ranged from Donna Karan perfume and Louis Vuitton purses and wallets to Calvin Klein clothing and Air Jordan shoes.

The haul, which had an estimated street value of $643,000, even included two pieces of Minnesota's most cherished sports memorabilia: sports jerseys supposedly autographed by Brett Favre and Joe Mauer.

Counterfeit items are generally sold for about one-third of the suggested retail price. The merchandise, smuggled into the United States mainly from China, costs the economy $200 billion to $250 billion per year and more than 750,000 jobs, said Claude Arnold, special agent in charge for U.S. Immigration and Customs Enforcement (ICE) for Minnesota and five other Midwest states.

Beyond the financial impact, counterfeit items such as perfume or batteries could contain hazardous materials; belts on purses, for instance, might contain lead paint.

Arnold said 8 percent of the merchandise sold worldwide is counterfeit, which is why the activity is a constant priority for his agency. Last week's seizures were the largest during his three-year tenure.

"Smuggling is smuggling," he said. "The infrastructure used to bring counterfeit items in the United States could be used to bring in weapons and drugs."

Arnold picked Wednesday, two days before the start of the busy holiday shopping season, to discuss the issue as a warning to savings-hungry consumers. Because it's an ongoing investigation, he declined to name the stores that had been selling the merchandise. Nor would he discuss whether there is a link between them. None of the stores was shut down, but their owners could face criminal charges or large fines, he said.

Counterfeit items aren't usually a problem for well-known retail stores because they deal with established buyers. It's possible some store owners who bought counterfeit items believed the merchandise was legitimate, Arnold said.

ICE agents receive training to detect counterfeit items, but sometimes it's not easy for the layman to spot the fakes. Counterfeit purses will have irregular stitching, glued-down corners and labels with no company emblem. Bogus perfume bottles will have bending tubes that disperse the liquid, caps made in two pieces and container boxes with loose-fitting shrink-wrapping.

A fake sports jersey usually has uneven stitching around player names and numbers and loose threads inside the jersey. The most obvious sign, agents say, is that the jersey's color will fade after a few washings.

Arnold said ICE will continue its work on counterfeit merchandise, and store owners should be aware that a shopper may actually be an agent.

The best advice to consumers?

"If it's too good to be true, it's too good to be true," Arnold said.

David Chanen • 612-673-4465

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