Fab or Faux?

Well, yes, the designer's business is damaged by counterfeit goods, but the problem is more widespread. Counterfeit goods represent 7% of world trade, a market worth more than $350 billion, according to the International Chamber of Commerce, an international business group. Every dollar spent on counterfeit goods is a dollar in lost revenue for local businesses and in sales tax revenue for your community. Worse yet are the industry's connections to child labor violations, organized crime and terrorism.

Prosecutors and lawyers for the brands tend to go after the manufacturers and bulk suppliers, hoping to cut off the supply chain to individual sellers. While it's unlikely you'd be arrested for purchasing a counterfeit item, you certainly could get in trouble with the law. Last year, tourists in Italy were slapped with a $4,000 fine for buying a fake Prada bag. And don't forget those Recording Industry Association of America lawsuits against individuals for copyright infringement on illegally downloaded music. A more likely scenario is that your goods may be confiscated. Last year U.S. Customs and Border Protection seized $93 million worth of counterfeit items from individuals, mostly at airports.