I would assume it's from this part of the article:
"How were the sites investigated? For the most recent batch of names, Chanel hired a Nevada investigator to order from three of the 228 sites in question. When the orders arrived, they were reviewed by a Chanel official and declared counterfeit."
It was closer to 1.3% if that makes you feel any better.
That said, as I wrote elsewhere, the contention is not that they were wrong, only that they did not, in fact, check.
I'm not on the list of authorized distributors.
I can sell a shit ton of Chanel merchandise.
There is no definition of anything at all here that means I am selling knockoffs.
How? According to Chanel's corporate website, they only sell through their own boutiques and authorized retail partners. This is known as a selective distribution agreement, and here is a 2008 report on internet sales models (prepared for Chanel) which articulates the differences from normal wholesale-retail models: http://www.crai.com/ecp/assets/Selective_distribution_Caffar...
My whole point is that no, you can't just go into business as a Chanel retailer, and you'll find the same is true for Hermes, LV, and a variety of other luxury brands. A great many high-value manufacturers make use of selective or exclusive distribution agreements to maintain price discrimination and market positioning for their brand across a global market.
I can buy Chanel, Hermes, LV, or other luxury products and resell them at any super-low, cheap-as-dirt price I wish. There is no arrangement in which you can determine "by definition" that the products I'm selling at a ridiculously low rate are knockoffs.
I could be a moron business person and lose my ass. I could have decided to violate my retail agreement and do what I wish. I could have received a box of the stuff from a friend & resell it for $20 a pop. I could have stolen a shipment of goods or procured them in some other non-authorized fashion and yet still be selling, by definition, the genuine article.
I was taking issue with the erroneous assertion one could tell, by definition, that a cheap luxury product was a knockoff. There is no way to reliably determine by price alone. A dirt-cheap luxury good can certainly heighten one's suspicions of its authenticity, but the price alone is no defining factor in judging a knockoff from the real thing.
I could be a moron business person and lose my ass. I could have decided to violate my retail agreement and do what I wish. I could have received a box of the stuff from a friend & resell it for $20 a pop.
Of course you could, but the probability that you actually are is sufficiently remote to be set aside. In the unlikely event that such a claim turns out to be true, you'll be compensated.
I could have stolen a shipment of goods or procured them in some other non-authorized fashion and yet still be selling, by definition, the genuine article.
Insofar as you are marketing and selling to Us customers from a US-registered website, that in itself would be sufficient justification to shut your website down. Convicting someone requires proof beyond a reasonable doubt, but putting a halt to self-evidently criminal activity does not.
