Authenticity in Resale

Whether you call them fakes, replicas, look-alikes, inspired-by, reproductions or knockoffs...it is still called product counterfeiting and it is BIG business. According to the Department of Commerce, losses to U.S. business from the counterfeiting of trademarked consumer products are estimated at $250 billion a year.

Authenticity matters in resale because trust matters.
Customers trust that the items they purchase are genuine.
Brands trust that their names, designs, and trademarks are being represented honestly.
Store owners trust that the decisions they make today will protect their business tomorrow.

This resource exists to help resale professionals make informed, confident decisions around authenticity and to protect the reputation of resale as a legitimate and trusted retail industry. Authenticity is not just a policy. It is a responsibility shared by everyone participating in the resale marketplace.

Authenticity In Resale Means Not Selling Fakes

Selling counterfeit items is illegal, and store owners are being caught and prosecuted. Know what you’re accepting, verify authenticity, and when in doubt, don’t sell it. You could be next.

Respecting Every Brand, Including Your Own

Brands invest significant time, creativity, and financial resources in their designs and trademarks. Counterfeit and misrepresented goods weaken brand integrity and dilute brand value.

Resale depends on respect for customers, brands, and the work that went into creating the original product. Ethical resale strengthens the relationship between brands and the secondary market while preserving resale as a legitimate and trusted retail channel.

Every item you sell also reflects your store. Your name is on the receipt, and your reputation is what customers remember. One counterfeit or improperly represented item can damage your credibility and undo years of trust and goodwill. Your store’s brand is one of its most valuable assets, and protecting it requires consistent, thoughtful decisions, even when the answer feels inconvenient.

What Counterfeiting Really Means

Counterfeit goods go by many names. Fake. Replica. Look alike. Reproduction. Knockoff. Regardless of the term used, they all fall under the same definition.

Counterfeiting is the imitation of a product combined with the unauthorized use of a trademark. This includes brand names, logos, monograms, designs, patterns, scents, and other protected elements. Counterfeit items are intentionally created to closely resemble genuine products and to give the impression they were produced by the original brand.

The purpose of counterfeiting is deception. The item may appear identical, but it was not made, approved, or authorized by the brand whose trademark it displays.

The Scope
of the
Problem

Counterfeiting is not a minor issue or a gray area. Losses to U.S. businesses from counterfeit and pirated trademarked goods are estimated to exceed 300 billion dollars annually. These figures reflect not only lost sales, but long term brand damage, erosion of consumer trust, and broader economic harm.

Counterfeit goods appear in many places. Online marketplaces. Social media platforms. Pop up sales. House parties. Street vendors. They also find their way into resale channels when items are not carefully evaluated.

This widespread availability makes it even more important for legitimate resale businesses to hold a clear and consistent line.

A common misconception is that identifying an item as fake, faux, replica, or look alike makes it acceptable to sell. This is not true.

A counterfeit item remains illegal regardless of how it is labeled. Disclosure does not eliminate trademark infringement. Calling something a dupe does not change the law.

Selling or distributing counterfeit goods is considered trademark infringement and may result in fines, confiscation of merchandise, and legal action. The intent to be transparent does not remove the risk.

Disclosure Doesn't Make
It Legal

Why This Matters to Resale

Allowing counterfeit items into the resale marketplace puts businesses at legal risk and damages consumer trust. When a customer discovers they purchased a counterfeit item, they often question the honesty and credibility of the store as a whole.

Customers may not understand trademark law, but they understand trust. Once that trust is broken, it is difficult to rebuild.

Counterfeiting also undermines resale as an industry. When consumers see fake goods mixed into the secondary market, they become hesitant to buy pre owned items at all. Ethical resale businesses then pay the price for the actions of bad actors.

Protecting Your Store Through Authentication

When authenticity cannot be confidently determined in house, professional third party authentication provides another layer of protection. It may require additional time and expense, but it costs far less than the consequences of selling a counterfeit item. Authentication isn’t a failure of knowledge. It’s a sign of responsibility.

Best practices include knowing when to pause, declining items you suspect may not be genuine, and using professional authentication services when appropriate. Don’t sell repurposed or altered branded items unless you’re certain they comply with trademark law. When authenticity is uncertain, the safest decision is to decline the item.

Resale works best when trust leads the way. Authenticity protects customers, respects the brands that built the marketplace, and strengthens your store’s reputation. As a NARTS member, you agree to sell only authentic items in their original form. Items that are inspired by, repurposed, altered, or otherwise not original to the brand aren’t permitted for resale, even when disclosed. Knockoffs and misrepresented goods have no place in resale.

Selling authentic items isn’t about being overly cautious. It’s about being informed, responsible, and proud of the business you run. This commitment keeps resale trusted, credible, and strong.

NARTS has several partners that provide professional authentication services. Visit the Partners Listing in your NARTS360 Member Portal to learn more and find the right authentication resource for your store.