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BETHLEHEM, Penn. — A $1.4 billion counterfeit luxury market thrives in the United States, with fake designer bags, watches, and accessories sold on street corners from New York to Los Angeles. While most shoppers know these items aren’t authentic, new research reveals surprising insights about who’s most likely to buy them.

Research published in the Journal of the Association for Consumer Research shows that people who know less about fashion and luxury brands are actually more drawn to counterfeit items than those who consider themselves fashion experts. This finding helps explain why the counterfeit market continues to grow despite widespread awareness that buying fake goods is illegal.

The study discovered that when people don’t know much about luxury brands’ history, craftsmanship, and heritage, they’re more likely to convince themselves that buying counterfeits is acceptable. They often justify their purchases by saying the authentic items are overpriced, or that buying fakes doesn’t really harm anyone.

‘Moral disengagement’ drives counterfeit purchases

Led by Ludovica Cesareo, an assistant professor of marketing at Lehigh University, and Silvia Bellezza, an associate professor of business at Columbia University, the study focused on how different levels of fashion knowledge affect people’s attitudes toward counterfeits. The researchers worked with nearly 1,000 participants — including both everyday consumers and members of university fashion clubs — across a series of four studies. They found that fashion expertise dramatically changed how people viewed fake luxury goods.

At the heart of this research is a psychological concept called moral disengagement — the mental gymnastics people use to justify actions they know aren’t entirely right. The researchers found that shoppers with less fashion knowledge were more likely to morally disengage when it came to counterfeit goods. They’d tell themselves things like “I’ll buy the real thing someday” or “Everyone else does it” to make their interest in fakes feel more acceptable.

Cesareo tells StudyFinds Editor-in-Chief Steve Fink that people may be more prone to moral disengagement when it comes to spending money. “People may find it easier to morally disengage in financial transactions because they can rationalize their actions through justifications like affordability, perceived harmlessness, or social norms,” she explains. “Additionally, when products like counterfeits are widely available, consumers may feel a diffusion of responsibility, making it easier to ignore ethical considerations.”

Knowledge is power

This moral disengagement showed up in the study in three main ways. First, people would justify buying counterfeits by pointing to situational factors, like being a student with limited money. Second, they’d spread out the responsibility by saying that since lots of people buy fakes, it couldn’t be that bad. Third, they’d downplay the consequences, convincing themselves that buying counterfeits doesn’t really harm the luxury brands.

Fashion experts, on the other hand, were far less likely to use these mental shortcuts. Their deeper knowledge of the industry made them more aware of how counterfeiting affects everything from brand heritage to worker conditions. They understood that fake goods often fund criminal enterprises and exploit workers in unsafe conditions. This knowledge made it harder for them to morally disengage from the real impacts of counterfeiting.

During one experiment, researchers gave participants a scenario about owning an authentic luxury item and then encountering a counterfeit version being sold on the street. Those with less fashion knowledge often expressed interest in the fake items, reasoning that they could get the same status symbol for a fraction of the price. More knowledgeable participants, however, showed strong negative reactions to the counterfeits, viewing them as cheapening the authentic brand’s value.

The study also revealed interesting patterns in how people talk about luxury brands on social media. Less knowledgeable consumers who encountered counterfeits were actually more likely to post about the authentic brands online. This suggests they might be using social media to validate their connection to luxury brands, even when considering fake versions.

How brands can win the counterfeit war

For luxury brands, these findings point to a new strategy in fighting counterfeits. Instead of focusing solely on legal enforcement or anti-counterfeiting technology, brands might be more successful by targeting consumer knowledge. Local governments should also invest more effort into bringing the reality behind counterfeiting to light.

“Both brands and governments have roles to play,” says Cesareo. “Brands should educate consumers through targeted campaigns that highlight the authenticity and craftsmanship of their products, while governments should strengthen regulations and enforcement against counterfeiting. Public awareness campaigns, such as those run by crime prevention agencies, can also help reduce consumer demand for counterfeit goods.”

Many luxury houses are already moving in this direction, creating museums, exhibitions, and educational programs that showcase their history and expertise.

Louis Vuitton, for example, recently launched a traveling exhibition featuring 200 versions of their iconic trunk, demonstrating the evolution of their craftsmanship over two centuries. Gucci has opened a museum in Florence that traces the brand’s history from its founding as a leather goods shop to its current status as a global fashion powerhouse. These initiatives help consumers understand the value behind authentic luxury goods.

The research suggests this educational approach might be particularly effective with younger consumers who are just beginning to develop their fashion knowledge. By helping them understand the artistry and tradition behind luxury brands, companies might prevent them from viewing counterfeits as acceptable alternatives.

The connection between knowledge and moral reasoning can certainly be applied to to fashion. The researchers suggest that expertise in any field might make people more attuned to ethical issues in that area. Just as fashion experts see the problems with counterfeits more clearly, music aficionados might be more concerned about pirated content, or food experts more troubled by fake ingredients.

As online shopping makes luxury goods more accessible than ever, brands face new challenges in communicating their value to consumers who might never visit a physical store or interact with knowledgeable sales staff. Digital platforms might need to find new ways to convey the heritage and craftsmanship that justify luxury prices.

“We hope consumers can become more aware of their own moral disengagement when purchasing counterfeit goods,” says Cesareo. “Consumers can actively question their justifications for purchasing counterfeits and educate themselves on the negative consequences, such as links to organized crime, poor labor conditions, and economic harm to original brands.”