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Toronto police have arrested two individuals and seized over 16,000 counterfeit sports merchandise items ahead of the FIFA World Cup. Authorities urge the public to purchase only from trusted sellers and report suspected fraud.
Security officials from Canada and the U.S. are expecting a significant rise in counterfeit goods linked to the World Cup. Experts warn that Canadian laws are not strong enough to prevent these illegal imports.
Lawyer David Lipkus, representing companies whose products are frequently counterfeited, says Canada relies heavily on brands to pursue civil lawsuits rather than enacting stricter border enforcement laws. “Our government needs to prioritize removing these goods from the marketplace similar to our counterparts in the United States and globally,” Lipkus said.
Ahead of the World Cup, a panel hosted by the U.S. Embassy brought together Canadian and American border and intellectual property enforcement officials. Attendees included provincial police, lawyers, and sports industry representatives. Officials spoke anonymously.
A Canada Border Services Agency (CBSA) official involved in customs enforcement warned that the World Cup will bring a surge in counterfeit products. The agency is utilizing advanced data analysis and exploring artificial intelligence to identify suspicious shipments.
A U.S. Department of Homeland Security official highlighted that purchasing counterfeit goods can fuel other criminal enterprises involving weapons and drugs. “It’s not just a counterfeit jersey. It’s where the money is going, it’s funding large-scale criminal organizations,” the official said.
This warning came during the same week Toronto police disclosed their largest seizure of counterfeit soccer merchandise in Canadian history. Authorities confiscated more than $3.5 million worth of fake items bearing brands such as FIFA, Puma, Nike, and Adidas.
Investigators began their probe after a complaint from Lipkus’s law firm, part of the Canadian Anti-Counterfeiting Network.
At the U.S. Embassy event, Lipkus noted that the large seizure was just one warehouse in one city, suggesting much more counterfeit merchandise is entering Canada. He criticized Canadian laws as inadequate compared to those in the U.S., where border officials can seize, forfeit, and destroy counterfeit goods without court proceedings.
In contrast, Canadian border officials can only detain counterfeit goods for 10 days. During this period, goods are destroyed only if the importer consents or the brand files a civil lawsuit. If no lawsuit is filed, CBSA must release the goods into the country. Lipkus called this system insufficient, warning it should be a wake-up call for everyone.
He testified before the House of Commons and Senate over ten years ago advocating changes, but the problem has worsened, partly due to social media enabling direct marketing of knock-offs to consumers.
Lipkus also criticized Canada’s trademark and copyright laws, which require websites to receive only a notice of infringement. He emphasized that counterfeit sales are not victimless crimes.
He raised concerns about health and ethical issues tied to counterfeit products. “What if that jersey included toxicity in it? What if that jersey included urine and feces traces because it was made in substandard conditions? What if the jersey was made by an eight-year-old child that was chained to a sewing machine? Would that change the perspective? What if you knew that money was going to a terrorist group?”
CBSA stated it is committed to its mandate and is investigating the use of artificial intelligence to spot irregular shipment patterns. The agency prioritizes national security, including monitoring firearm parts at the border, but it does not treat counterfeit goods as a lesser threat.
If CBSA detects health, safety, or security risks linked to counterfeit shipments, it refers cases to the RCMP or Health Canada. If those agencies do not act, CBSA detains the goods and contacts the affected companies to see if legal action will be taken.
The RCMP leads all criminal investigations involving large-scale commercial counterfeiting.