Influencers under scrutiny as SARS targets counterfeit luxury goods promotions
Counterfeit luxury is a big business, however, influencers promoting fake goods may soon face SARS scrutiny.
The counterfeit luxury market in South Africa is experiencing rapid growth, fuelled by consumer demand, improved replica technology and the appeal of so-called “super fakes”. These items often look almost identical to the originals, making them difficult to identify even for experts.
Counterfeit goods ranging from handbags to jewellery are circulating widely, with many of them being openly advertised by local social media influencers. One influencer featured in a recent report expressed excitement over a replica bag, admitting that she could not afford the authentic version.
What is driving the rise of counterfeit goods online?
The online world has become a hub for counterfeit trade. Platforms such as Instagram and TikTok are flooded with sellers marketing fake luxury items, reports News24. Despite regular efforts to remove these accounts, new ones appear just as quickly. The digital marketplace’s fast-paced nature allows counterfeiters to reach a large audience before being detected or shut down.
Netflix’s documentary Bad Influencer recently looked at how these underground networks operate, showing the ease with which counterfeit products can infiltrate the market. Michael Zahariev of Luxity, a luxury reseller, has warned that counterfeiters are also targeting the second-hand sector, disguising fakes as affordable pre-owned originals.
How is SARS responding to the counterfeit trade?
The South African Revenue Service (SARS) has issued a clear warning to influencers collaborating with suppliers of counterfeit luxury goods. Reports News24, SARS intends to clamp down on individuals who promote, sell or profit from counterfeit products. Influencers endorsing or advertising fake handbags, shoes or jewellery should expect enforcement action soon.
SARS officials have the authority to detain imported goods suspected of being counterfeit. This is in line with the Counterfeit Goods Act, 1997 (Act No. 37 of 1997), which was introduced to prevent the circulation of fake items in the South African market.
What does the Counterfeit Goods Act say?
According to SARS, the Counterfeit Goods Act empowers officials to act against the trade and production of counterfeit goods. Under section 113A of the Customs and Excise Act, 1964, SARS may detain goods entering South Africa to determine whether they are counterfeit. These actions are carried out for the Department of Trade and Industry, which oversees the enforcement of the Act.
The Act prohibits the following:
Possessing counterfeit goods for trade or resale.
Manufacturing or storing counterfeit goods other than for private, domestic use.
Selling, hiring, bartering or exhibiting counterfeit items.
Importing, exporting or distributing fake products for trade.
Engaging in any activity related to dealing in counterfeit or suspected counterfeit goods.
The legislation also provides intellectual property owners with recourse. Section 15(1) allows rights holders to apply to the SARS Commissioner to seize goods that infringe on trademarks, copyright or other protected marks. These applications must be submitted to the National Coordinator for Counterfeit Goods at SARS for assessment and action.
What are the broader implications for influencers?
With SARS strengthening its oversight, influencers who promote or accept counterfeit goods as part of paid partnerships risk legal and financial consequences. Even unintentional promotion can lead to reputational damage and possible prosecution if the items are found to breach intellectual property laws.
The ongoing spread of counterfeit luxury items shows that enforcement alone may not be sufficient.
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Information courtesy of News24