Counterfeit fashion products aren’t just unethical, they can also be unhealthy.
Increasingly pervasive counterfeits have long been a scourge on the fashion industry, eroding both brand intellectual property and consumer trust. Yet the issue of harmful chemicals contained within is lesser known.
The American Apparel & Footwear Association’s (AAFA) is ringing the alarm bells with the report Unboxing Fake Fashion: Unleashing Real Dangers. The study warns that counterfeit apparel, footwear and accessories predominately sold online expose U.S. consumers to serious health, safety and economic risks.
The study built on AAFA’s 2022 investigation and analyzed 39 counterfeit apparel, footwear and accessories products submitted by AAFA member companies between August and December 2025. Items were sourced through online test purchases or seizures and tested at an ISO/IEC 17025-accredited Intertek laboratory.
Among the most alarming findings was widespread chemical non-compliance.
The results found that 41% of the tested counterfeit products failed for hazardous chemicals, while eight products (more than 20% of all tested items) failed due to excessive levels of phthalates. One product contained nearly 327,000 parts per million of diethyl phthalate (DEP), exceeding the regulatory limit by more than 650 times, as outlined within AAFA’s Restricted Substances List (RSL). Phthalates are known endocrine disruptors and have been linked to heart disease, developmental harm and adverse prenatal effects.
Five products failed for PFAS, six for alkylphenols and alkylphenol ethoxylates (AP/APEOs), three for bisphenol-A (BPA), two for formaldehyde, and three for heavy metals. One counterfeit product contained 191 parts per million of lead, while another exceeded formaldehyde limits nearly tenfold, levels that could pose severe risks, particularly to children.
“Counterfeiting is not just an issue of consumer trust or brand protection, it is an issue of public health,” said Steve Lamar, president and CEO of AAFA. “Counterfeit products, often purchased through unregulated third-party marketplaces, continue to pose real risks to American consumers.”
Lamar and the AAFA call on policymakers to immediately address the very real dangers of fakes being trafficked online. “It’s time to act decisively to safeguard consumers from dangerous counterfeits,” he added.
Four case studies illustrate how these hazards reach consumers in different ways.
- A counterfeit handbag promoted by a TikTok “dupe influencer” contained extreme levels of phthalates and toxic nickel.
- A counterfeit men’s down jacket marketed through Instagram and Facebook was “lined with lead.”
- A counterfeit sports hat sold through a fraudulent website promoted via Facebook ads contained nearly 10 times the legal limit of formaldehyde.
- Counterfeit high-top sneakers purchased through Facebook Marketplace exceeded regulatory thresholds for phthalates, PFAS and alkylphenols.
Beyond chemical exposure, counterfeiting can also lead to worker oppression.
AAFA documents unsafe and exploitative working conditions uncovered during raids on counterfeit production sites, including a facility in Peru producing children’s apparel under filthy and hazardous conditions. The association also frames counterfeiting as a national-security concern, noting that U.S. Customs and Border Protection has linked counterfeit trafficking to organized criminal activity and that intellectual-property protection is cited in the 2025 U.S. National Security Strategy.
Digital Platforms Main Culprits
Online platforms play an outsized role in facilitating counterfeit sales. AAFA found that at least 25% of failed counterfeit products were affiliated with tools provided by Meta platforms, including Facebook, Instagram and Facebook Marketplace.
As a result, AAFA nominated several online marketplaces, including Meta, Shopee and Alibaba for inclusion in the U.S. government’s Notorious Markets List.
Counterfeits are also increasingly difficult to spot. Some fakes use real photos and website designs from legitimate companies, building up a fake trust. Meanwhile, fraudulent ads, hidden links, “dupe” influencers and deceptive websites contribute to what AAFA calls the “Digital Devalue Chain of Counterfeits,” a system that enables counterfeiters to exploit platform gaps while evading accountability.
While counterfeiting remains predominantly digital, it isn’t the only place where fakes are sold. The report documented a brick-and-mortar case of counterfeit jackets sold through U.S. retail stores, prompting ongoing litigation.
This incident highlights the contrast between stricter oversight of physical retail and the fragmented, relationship-dependent enforcement environment online.
AAFA calls current enforcement mechanisms insufficient and calls for systemic reform. Key recommendations include reintroducing the SHOP SAFE Act to align online marketplaces with brick-and-mortar standards, strengthening enforcement of the INFORM Consumers Act, expanding Customs and Border Protection’s authority to share IP-related data, and increasing funding for intellectual-property enforcement.
