TikTok Fake Luxury Goods Scam Exploits Trade War Confusion

A surge of viral TikTok videos falsely claims luxury brands secretly manufacture goods in China to circumvent trade tariffs, but these "revelations" are a front for selling counterfeit items, according to the European Union Intellectual Property Office (EUIPO). Counterfeiting costs European industries an estimated €16 billion annually.

Chinese content creators posing as industry insiders allege that Beijing has lifted confidentiality for subcontractors due to US-China trade tariffs, supposedly allowing them to reveal hidden Chinese manufacturing. They urge Western consumers to buy directly from websites selling unbranded goods claimed to be identical to high-end originals, with drastically reduced prices (e.g., a $38,000 bag for $1,400). Targeted brands like Hermes, Chanel, and Louis Vuitton, which state their goods are made in Europe and the US, have not commented.

However, luxury goods consultant Jacques Carles dismisses the idea of these brands manufacturing in China as "absurd" and "suicidal," emphasizing the meticulous processes involved in authentic luxury production, unlike counterfeit workshops. He believes these TikToks aim to create doubt and offload fake stock through a difficult-to-counter viral campaign. Luxury marketing professor Michel Phan agrees, stating the claims about secret Chinese manufacturing and tariff retaliation are nonsensical and illegal.

Meanwhile, Chinese vendors are directly selling counterfeit luxury goods on TikTok live streams, using AI voices and QR codes to link to purchase options via WhatsApp or PayPal, targeting European and US consumers.

China is frequently cited as the top source of counterfeit goods globally. Purchasing fakes carries significant penalties in many regions, including hefty fines and even imprisonment in France. Customs authorities can also seize counterfeit items. The EUIPO highlights clothing, cosmetics, and toys as the most affected sectors by counterfeiting.