Nike’s lawsuit against StockX raises considerations for consumers and  resellers alike. 

Shopping secondhand is a growing trend, particularly for fashion items,  including sneakers, handbags, and accessories. StockX is an immense  player in the game, valued at nearly $4 Billion. Now, Nike is accusing  StockX of selling look-alike versions of its shoes and wants a federal judge  to force the online marketplace to remove the alleged knockoffs from its  website.

While Nike is a brand known for fiercely protecting its intellectual property,  its recent lawsuit against StockX is unique, as noted by Leah Chan  Grinvald, associate dean and professor of law at Suffolk University in a  recent article by Fast Company. Manufacturers audit for counterfeiting  regularly, and they buy their own products from resellers all the time,  according to Grinvald. However, it’s uncommon for a manufacturer to  actually sue a retailer for selling products that may have been  counterfeited.

“They rarely bring cases against the seller, but in this instance, StockX is  different from an Amazon or eBay, in that Amazon or eBay just tells  consumers, ‘Buyer beware! We’re just a marketplace!’” says Grinvald.  “Whereas StockX takes that next step . . . and says we’re verifying that the  shoes you’re buying are authentically Nike.”

This case raises important considerations for both sellers and consumers:  Sellers need to be increasingly vigilant about verifying the authenticity of  items they sell. Consumers need to be aware that even seemingly legitimate sources can sell fake items, even if authenticity is purportedly  guaranteed.

What may be surprising is that the most reliable source for shopping for  authentic pre-owned branded goods is a reputable pawn shop. In fact,  consumers may be more likely to be sold a fake online at one of these  online resellers than from a pawnbroker.

Here are a couple of the reasons why:

• Pawnshops are regulated at the local, state, and federal level, making  them unique from other retailers. For most, the risks involved in  selling counterfeit goods are simply not worth the effort.
• Pawnshops have been dealing in second hand goods for centuries.  The items they buy or take in as collateral for a pawn are assessed  for their resale value. Therefore, the pawnbroker is highly motivated  to take in only authentic merchandise and most invest in training,  technology, and continuing education to ensure that they do.

While consumers should be diligent in navigating the secondhand market  to avoid purchasing fake goods, the stakes are much higher for sellers,  particularly small businesses including pawnshops. “Resellers should arm  themselves with education, training, and support,” says Deanna  Thompson, co-founder of Marque Mentor. “The risks are just too high to  ‘wing it’ or make guesses on their own.”

Marque Mentor, which Thompson started alongside Luxury expert Quentin  Caruana is a fee-based online platform that provides direct insider access  to webinars, an active privately moderated online community, and other  exclusive content to help resellers navigate the secondhand luxury market  and grow their businesses while avoiding counterfeits and superfakes.  More information about the program is available at

www.marquementor.com.