Javier Diaz, associate general counsel at Chanel Inc., and Gabriela Guaracao, CEO and founder of Americae, at Villanova University Charles Widger School of Law's sixth annual Fashion Law Symposium on Feb. 21, 2020.

Speaking at Villanova University Charles Widger School of Law's sixth annual Fashion Law Symposium on Friday in Pennsylvania, Javier Diaz, associate general counsel of internet enforcement at Chanel Inc., said the expansion of the internet has made it easier for people to become involved in counterfeiting products and makes brand protection more difficult.

"The internet is the problem," Diaz quipped at the symposium. "It is harder and harder to distinguish an authentic product from a counterfeit these days."

Based in New York, Diaz said the legal department at Chanel has to make a concerted effort to coordinate with their international partners and take concise action against counterfeiters. However, because counterfeiters can shut themselves down as quickly as they pop up, that effort can be difficult.

"Our resources are very limited in the extent that we only have offices in so many places," Diaz explained.

Further, not all counterfeiters have large factories in different parts of the world. With access to the internet expanding, Diaz said some counterfeiters are akin to mom-and-pop shops and are difficult to trace.

Diaz said Chanel's legal team tries to litigate the counterfeiters but also sends out notices and takedown demands to online retailers found to have been selling counterfeit goods.

Apart from wanting to protect the company from having its name on counterfeit goods, Diaz said Chanel wants to protect its customers. He said even counterfeit clothing and accessory products may not be safe and mentioned reports through the years of counterfeit jewelry having high levels of lead.

"At the end of the day not only do we want to protect our brand, but we want to make sure [consumers] don't get sick," Diaz said. "It is a motivating factor for us to keep our clients safe."

Philadelphia-based Gabriela Guaracao, CEO and founder of Americae, said it is important to teach the consumer the value of what they are buying to help combat the purchase of counterfeit goods. She said because of the internet consumers are more aware than they have been in the past about sourcing and how products are being made and that she often travels to factory sites to answer these kinds of questions.

"How is it made? Is it funding organized crime? That is something we as a young brand are doing now," Guaracao said.

To further combat bad practices, Diaz said many companies in fashion are bringing more work in-house.

"It is an industrywide trend and Chanel realized it would be more cost-effective and also, from a consumer protection standpoint, they know where all of the products are coming from and be in more control of the process," Diaz said.