How a luxury monopolist might benefit from the aspirational utility effect of counterfeiting?

Thanks to an intertemporal analytical model, we incorporate aspirational consumers in Veblen markets for luxury fashion items. We show how a luxury monopolist can increase its profits thanks to the presence of counterfeit products. The genuine producer profit is shaped by two opposite effects: (1) a positive aspirational effect resulting from a sales increase due to the aspirational consumers who seek to imitate the lifestyle of snob consumers (2) a negative snob effect, resulting from a sales decrease due to the reduction of consumption by some snob consumers. We identify the conditions under which the overall effect generated by counterfeiting can increase the genuine firm profit. These conditions imply the existence of large aspirational effects and high additional utility gain associated with buying an original product instead of obtaining a counterfeit product.     

Consumers’ choices, infringements and market competition

The study fits the individuals?? characteristics of consumption into an analysis of the demands for both genuine goods and counterfeit goods. The consumers?? substitutability of genuine goods for counterfeits and attitudes toward a dispersed consumption of counterfeit varieties are the dimensions that affect the niche markets for counterfeits. We show that it is not necessary to increase the competition among counterfeits to reduce the demand for individual counterfeits if at the margin the variety of counterfeits enhances the value of consuming the good. The enforcements against counterfeiting deter the number of counterfeit firms, but encourage the output of individual counterfeits if the market includes a significant number of counterfeiters. The optimal private enforcement against counterfeiting is also fully discussed in the model.     

An empirical examination of product counterfeiting crime impacting the U.S. military

Counterfeit parts in the U.S. Department of Defense (DOD) supply chain threaten national security by compromising critical military operations and placing the lives of military service members at risk. With the goal of illustrating the nature of the risk as it relates to types of counterfeit parts, how they entered the supply chain, and were identified and processed through the criminal justice system, we assemble and analyze open-source information on criminal schemes involving counterfeits in the DOD supply chain. We utilize the Product Counterfeiting Database (PCD) to capture every indicted scheme linked to the DOD and describe characteristics of the schemes, offenders, and victims. These data provide empirical insights into the counterfeiting of parts and equipment in the DOD supply chain. We conclude with an overview of key issues to consider when weighing opportunities for product counterfeiting as well as implications for policy and practice.     

Counterfeiting and an Optimal Monitoring Policy

This paper studies the impact of adopting a monitoring system on counterfeiting, in which a criterion to minimize welfare losses due to counterfeiting is provided. If the degree to which the genuine product is imitated (hence the imitation rate) is not high, then counterfeit products might be allowed to exist in such a market. For the case of a high imitation rate, the use of a counterfeit monitoring regime with an optimal counterfeit-monitoring rate is the best policy. If the duration of intellectual property protection is set as infinite, then a higher monitoring rate corresponds to a narrower protection scope. Finally, the enforcement of the laws of intellectual property rights should be flexible according to a products inherent attributes as pertaining to the difficulties at imitating the original products.JEL Classification: D42, K42, L43     

Anticompetitive Employment

Scholars, antitrust agencies, and policy makers have historically paid little attention to anticompetitive practices in labor markets. This was largely due a misconception that antitrust law is meant to govern conventional markets in which goods and services trade, rather than govern labor markets. Antitrust law may also offer a poor remedy to redress employers who enter no-poaching agreements or otherwise impair competition. The primary tension involves antitrust's purpose, which is to promote “consumer welfare.” To identify whether conduct eroded consumer welfare, courts tend to scrutinize whether prices increased. But here, lessening wages can enable firms to sell goods at cheaper prices, benefiting consumers. Another issue is that the typical restraint affects only a smattering of workers instead of lessening wages throughout the greater market. This article uses empirical analyses to show that antitrust should promote labor's welfare as it does consumer welfare, and it argues that enforcement must condemn labor cartels as per se illegal. The research demonstrates that labor cartels are more pernicious than restraints in product markets, as employers can lessen wages with less effort than in product markets. Antitrust should even proscribe no-poaching agreements formed for a legitimate purpose (e.g., to protect trade secrets) because employers could have achieved the same goals using less coercive means; the noncompete agreement, at least, provides labor with a semblance of notice and bargaining power without drawing antitrust scrutiny. The prohibition of labor cartels would thus promote competition and consumer welfare, especially in minimum wage labor markets.     

Identifying Counterfeit Cigarettes Using Environmental Pollen Analysis: An Improved Procedure*

Traditional pollen preparation techniques provide clear residues for pollen identification; however, such methods are time-consuming, requiring repeated centrifugation, heating, and digestion with high-concentration hazardous chemicals. Tobacco leaves can effectively trap environmental pollen due to hairy surface and terpene-rich exudates. A new tobacco sample processing method was developed by using different extraction chemistry with surfactant. Marlboro Gold cigarettes were employed as model samples for method development. Parameters critical for pollen extraction, which include number of cigarette sticks used, extraction solution, and extraction temperature, were optimized. By using 1% dishwashing detergent to treat three cigarettes at room temperature, the improved method was able to recover sufficient pollen for microscopic analysis in three repeated centrifuge-washing steps and omit hazardous chemicals involved in traditional methods. We focused on the pollen of common ragweed (Ambrosia artemisiifolia), a plant native to North America, as an indicator to differentiate genuine and counterfeit U.S. brand cigarettes. Results from analyzing randomly purchased genuine (authenticated by forensic examination) and known counterfeit Marlboro Gold provided by law enforcement revealed that a significant amount (39%) of Ambrosia were consistently present in all genuine samples, while counterfeit contained none or only trace count. Similar results were found in other counterfeit U.S. brand cigarettes (all seized in the U.S.) involved in this study as well. Lack of Ambrosia in cigarette strongly indicates the product was not originated in the United States.     

Chemical profile of counterfeit buprenorphine vials seized in Tehran, Iran

Buprenorphine, commonly known by the trademark Temgesic, is one of the most popular drugs of abuse among the opioid-addicted young individuals in Iran. Temgesic, Bungesic, etc. are the most popular and important illicit opioid drugs in Tehran's illicit drugs black market, and are now among the most widely abused by opioid addicts. Because of this, counterfeiting of this drug has increased in Tehran. In this study, the qualitative analysis of counterfeit buprenorphine by gas chromatography-mass spectrometry (GC-MS) and high performance liquid chromatography (HPLC) demonstrates the presence of diacetylmorphine, acetylcodeine and pheniramine, as well as the absence of buprenorphine. In conclusion, due to the absence of quality control and difficulties in differentiating counterfeit buprenorphine from genuine products, the use of counterfeit buprenorphine leads the opioid abusers to health risks.     

Empowerment of Whom and for What? Financial Literacy Education and the New Regulation of Consumer Financial Services

Financial regulators in many states recently have obtained statutory mandates to enhance consumer financial literacy. This paper investigates the development of policy pursuant to such mandates in the UK and Canada to identify how national regulators represent the role of the literate consumer in the financial market place. It finds that regulators in both countries represent financial education as empowering consumers but that each embeds in its policy an implicit normative ordering of responsible consumer behavior. The paper relates the tension between empowerment and responsibilization aspects of literacy enhancement to policy goals of expanding financial markets and assisting financial regulators to manage consumers' expectations of protection. It raises questions about regulators' use of consumer education to responsibilize consumption of financial products and calls for further research on the international growth of financial literacy education as a regulatory project.     

Towards a more proactive approach to brand protection: development of the Organisational Risk Assessment for Product Counterfeiting (ORAPC)

Through an adaptation of a terrorism risk assessment model, this article develops an initial proactive product counterfeiting risk assessment that is designed to focus upon a specific product’s risk for being counterfeited. The goal of developing this risk assessment is to help corporations identify the products that are most at risk for counterfeiting, thereby giving them the ability to focus their resources in the areas where the greatest opportunities for crime are present. This risk assessment is intended to serve as the first line of defence in a comprehensive and proactive brand owner strategy centred on identifying product-specific counterfeiting risk. The assessment comprises three factors that, together, capture a product’s counterfeiting risk level: the threat of product counterfeiting, the brand owner’s vulnerability to product counterfeiting and the potential consequences of a counterfeit product entering the market and reaching consumers.     

Passport examination by a confocal-type laser profile microscope

The author proposes a nondestructive and highly precise method of measuring the thickness of a film pasted on a passport using a confocal-type laser profile microscope. The effectiveness of this method in passport examination is demonstrated. A confocal-type laser profile microscope is used to create profiles of the film surface and film–paper interface; these profiles are used to calculate the film thickness by employing an algorithm developed by the author. The film thicknesses of the passport samples—35 genuine and 80 counterfeit Japanese passports—are measured nondestructively. The intra-sample standard deviation of the film thicknesses of the genuine and counterfeit Japanese passports was of the order of 1 μm The intersample standard deviations of the film thicknesses of passports forged using the same tools and techniques are expected to be of the order of 1 μm. The thickness values of the films on the machine-readable genuine passports ranged between 31.95 μm and 36.95 μm. The likelihood ratio of this method in the authentication of machine-readable Japanese genuine passports is 11.7. Therefore, this method is effective for the authentification of genuine passports. Since the distribution of the film thickness of all forged passports was considerably larger than the accuracy of this method, this method is considered effective also for revealing the relation among the forged passports and acquiring proof of the crime.     

Buying stolen goods: the ambiguity in trading consumer-to-consumer

This study investigates the buying of stolen goods in Denmark. The study consists of a self-report survey based on a representative sample of the general Danish population (n = 2311) and six focus group interviews consisting of both informants experienced with buying stolen goods and of those with no experience (n = 37). The survey showed that 4.8% had bought stolen goods, while 15.7% were uncertain whether they had bought stolen goods. Young people, males, and unemployed were more likely to purchase stolen goods. No clear correlation between income and buying stolen goods was found. Focus groups suggest the buyers of stolen goods did not buy stolen goods because they could not afford legitimate products. We recommend targeting consumers not interested in buying stolen goods with information about how to avoid such activity.     

Profiling of counterfeit medicines by vibrational spectroscopy

Counterfeit pharmaceutical products have become a widespread problem in the last decade. Various analytical techniques have been applied to discriminate between genuine and counterfeit products. Among these, Near-infrared (NIR) and Raman spectroscopy provided promising results. The present study offers a methodology allowing to provide more valuable information for organisations engaged in the fight against counterfeiting of medicines. A database was established by analyzing counterfeits of a particular pharmaceutical product using Near-infrared (NIR) and Raman spectroscopy. Unsupervised chemometric techniques (i.e. principal component analysis - PCA and hierarchical cluster analysis - HCA) were implemented to identify the classes within the datasets. Gas Chromatography coupled to Mass Spectrometry (GC-MS) and Fourier Transform Infrared Spectroscopy (FT-IR) were used to determine the number of different chemical profiles within the counterfeits. A comparison with the classes established by NIR and Raman spectroscopy allowed to evaluate the discriminating power provided by these techniques. Supervised classifiers (i.e. k-Nearest Neighbors, Partial Least Squares Discriminant Analysis, Probabilistic Neural Networks and Counterpropagation Artificial Neural Networks) were applied on the acquired NIR and Raman spectra and the results were compared to the ones provided by the unsupervised classifiers. The retained strategy for routine applications, founded on the classes identified by NIR and Raman spectroscopy, uses a classification algorithm based on distance measures and Receiver Operating Characteristics (ROC) curves. The model is able to compare the spectrum of a new counterfeit with that of previously analyzed products and to determine if a new specimen belongs to one of the existing classes, consequently allowing to establish a link with other counterfeits of the database.     

Sociolegal change in consumer fraud: From victim-offender interactions to global networks

Advances in technology have transformed fraud against consumers from face-to-face, victim-offender interactions to a crime that now transcends international boundaries. Although consumer protection issues have been of interest to investigative journalists and literary scholars for centuries, the topic has only recently been subject to serious criminological inquiry. Employing the American consumer protection movement as an historical framework, we examine the evolution of consumer fraud. Our review documents that progressive social and legal changes in consumer protection and corporate regulation, as well as developments in criminological research, correspond to prominent literary exposés of the time. In today's technological age, such a reactive response to consumer fraud is neither efficient nor effective. Contemporary criminologists need to simultaneously address the questions of ‘how’ fraud is perpetrated and ‘why’ it occurs. Toward this end, we identify methodological strategies and data sources to promote empirical and theoretical understanding of consumer fraud, and to ultimately contribute to multi-national crime control policy.     

金融消费者的法律定义

对"金融消费者"进行法律定义,应充分挖掘概念与制度之间的理论逻辑,根据制度内容来推导概念的内涵与外延。"金融消费者"概念的提出以及相关倾斜性保护制度的构建,是基于其与金融经营者之间"实力不对等、信息不对称"的理论预设。根据这一制度逻辑,顺应金融消费者保护的国际立法和监管趋势,并考虑我国国情,我国金融消费者应该是指"已经、正在或正打算购买、接受金融机构提供的金融商品或服务的自然人、法人和其他组织,但专业投资者除外"。     

准公共产品的供给分析

从传统理论上讲,准公共产品是介于公共产品与私人产品之间的社会产品,它是具有公共产品与私人产品特征的混合产品。因此准公共产品的提供就与一般商品有所差别,它是由企业与政府共同提供的。     

论消费者保护视角下缺陷产品召回制度的完善

为确保企业履行产品安全保障义务,美国创设了缺陷产品召回制度,以促使企业承担社会责任、维护消费者利益与公共安全.美国的缺陷产品召回立法完善,召回主体和范围明确,在保护消费者人身和财产安全方面发挥着积极的作用.我国新修改的《消费者权益保护法》从保护消费者权益的角度,明确了产品召回与消费者权益保护的关系,但我国的产品召回机制,从立法到实施都具有相当的局限性,影响其功能的正常发挥.为保护消费者的利益,有必要检讨我国缺陷产品召回之规定.作为对现实的回应,应统一产品召回立法,明确产品召回主体的范围,扩大产品召回对象的范围,并在产品召回程序中完善消费者的参与,进而实现保护消费者权益、维护社会公共安全和稳定经济秩序之目的.     

Considerations in Medicare reform: the impact of Medicare preemption on state laws

This article explores the key issues involved in understanding the impact of Medicare preemption on state laws affecting the federal purchase of managed care products, as a consideration in future Medicare reform. Author Commander Jackonis argues that any further Medicare reform must address the impact of federal preemption on quality and quantity of care purchased in order to ensure the existence of a market of product providers, as well as to ensure protection of patient rights and benefits.     

The Potential and Limits of Consumer Empowerment by Information

Consumer policy increasingly places emphasis on the role of information in allowing consumers to protect themselves and promoting a competitive economy. Increasing the information available to consumers is undoubtedly beneficial, but this article cautions that the limitations of consumer protection though information also have to be recognized. In particular, emphasis is placed on the insights provided by behavioural economics which suggests that consumers may not always respond to information provided as rationally as traditional economic models sometimes assume. One implication of this is that the way information rules are framed needs to be revisited. Other consumer policy approaches (altering the default rules, using bans and regulations, and risk sharing) need to be considered alongside a strategy of information provision. To analyse which approach should be adopted or to find the appropriate balance between different approaches requires policy makers to engage more fully with the legal and consumer policy research community.     

Cultivating Evidence-Based Pathways for Cannabis Product Development: Implications for Consumer Protection†

Disparities between federal and state cannabis regulation, coupled with protracted federal enforcement, have facilitated the proliferation of a multi–billion dollar cannabis industry that generally evades compliance with federal consumer protection laws. The Federal Food, Drug and Cosmetic Act (FDCA) established regulatory pathways for the lawful development of products such as food, drugs, and dietary supplements. The FDCA uses a science-based approach to protect consumers from harmful products, but early inconsistencies between state and federal cannabis regulation prevented and/or discouraged the cannabis industry from complying with FDCA requirements. Cannabis products are promoted as safe and attributed with providing effective therapeutic treatment for numerous medical conditions, yet the claims often lack the rigorous evidence-based support typically expected by regulators and the medical community. The Food and Drug Administration (FDA) has announced its expectation that cannabidiol (CBD) products comply with the FDCA and follow a science-based approach to product development. The FDA is addressing violations involving unsubstantiated CBD health claims and is working to clarify the future regulatory pathway for CBD products. Meanwhile, the state-approved cannabis market continues to operate, selling numerous products that have circumvented the FDCA consumer protections. This article examines the need for strengthening consumer protections in the cannabis market. We use evidence-based medicine as a model to address the importance of science-based product development and to contextualize a science-based comparison of regulatory pathways for cannabis drugs, food, and dietary supplements.     

X‐ray Powder Diffraction for Characterization of Raw Materials in Banknotes

We report about the X‐ray powder diffraction characterization of crystalline materials used to produce genuine and counterfeit banknotes, performed with a single‐crystal diffractometer that permits fast and nondestructive measurements in different 0.5‐mm sized areas; 20‐euro denomination genuine banknotes were analyzed, and results were compared with counterfeit banknotes. The analysis shows that the papers used to print real banknotes are composed, as expected, of cotton‐based cellulose and titanium dioxide as crystalline additive, but different polymorphs of TiO₂ for different emission countries are evidenced. The counterfeit banknotes are composed of cellulose based on wood pulp; moreover, an unexpected significant quantity of TiO₂ was found to be mixed with calcite, indicating that the paper employed by forgers is not simply a common low‐cost type. The crystalline index and intensity ratios between the peaks attributable to cellulose and fillers can provide additional information to trace back paper suppliers for forensic purposes.