LETTER: Fake goods contribute to GDP and job creation
The law permits commercial enterprises to use police to protect private interests
It seems to me that the Counterfeit Goods Act as applied to fashion goods should be reappraised, since it does not serve the common good in SA. By virtue of the criminal law, it permits commercial enterprises to use police time and resources at the cost of the taxpayer, to protect private interests (which should be a civil matter) and not the interests of the state.
The recent raid on traders in the Johannesburg CBD was wholly negative for the economy since the trade in fake goods contributes to GDP by creating demand that would not otherwise have been there, as well as employment, both of which are likely not recorded. The reason fake branded items are in such demand is because of the massive difference between the protected retail price of the genuine item and the copies sold in the informal sector, where those who cannot afford the genuine article are happy to buy what they know to be fake because they see value at the price asked...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.