Officials from the Criminal Investigation Bureau have cracked down a vendor that sells expensive counterfeit jewelry through TV shopping channel.
Those in the shopping channel has not been thorough in verifying the validity of the products that they advertise, nor have they exercise any quality control. They only signed a contract with the jewelry vendors, who have provided their own proof of appraisal. The vendors are therefore allowed to advertise and sell their products.
Some have purchased jewelry worth tens of thousands of New Taiwan Dollars from this channel. After they found the jewelry to be counterfeit, they reported the case to local prosecutors. The police said that the jewelry is very cheap, but these products are sold at anywhere between NT$10,000 and NT$60,000. The jewelry vendors have also worked with the channel to provide discounts to gain the consumers' trust. The vendors have also provided documents of appraisal, which were forged as well.
The vendors have their own family members set up an institution that's in charge of jewelry appraisal. In a way, they're both the players and the referees in the game. They produce their own counterfeit jewelry and forge the appraisal documents. Some jewelry vendors have also set up their own shops with sketchy appraisers.
Some jewelry vendors have explored loophole in Taiwan's legal system, as well as the lack of third party appraiser and the non-skeptical nature of most consumers to explore the market. They were found to have sold counterfeit jewelry with forged appraisal documents to at least 5,000 consumers, netting more than NT$130 million in illegal gain.