Over the last 13 years, Colombia’s refugee claims have represented more than five times the numbers from Peru, the second top claimants, according to the Immigration and Refugee Board of Canada

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The RCMP seized almost 20 per cent more dangerous counterfeit items, like fake electronics which could cause shocks and even explode into flames, in 2012 than they did in 2005. This is one reason the federal government changed anti-counterfeiting laws this year.

Where are they coming from?

China is the source of 80 per cent of the fake goods found in Canada,  everything from clothes and handbags to pharmaceuticals to electrical parts. Most of the counterfeit goods fall into the category of apparel and footwear, but copyrighted works like books and DVDs also make up a large portion.

Though most of the products come from China, countries like Pakistan, India, Thailand and even the United States are also sources. One of the main points of entry for these products is through ports. In a phone interview, RCMP Constable Mark Dempsey said “counterfeit items often arrive in 40 or 50 foot long shipping containers.” Even though some counterfeits enter Canada through ports in cities like Halifax, Dempsey says most of them are destined for bigger cities.

The prevalence of counterfeit goods has led some major international companies like Louis Vuitton to launch lawsuits prosecuting counterfeiters.

Ordering online

One of the easiest ways to buy phony products like cheap knockoff laptop batteries or look-alike designer purses is online. According to Dempsey, “Individuals can order counterfeit goods online from China or anywhere and have them shipped here…you can order as much as you want and have it for yourself and give it to your friends, but you’re not allowed to make money off of it.” In Canada, counterfeit laws are more concerned with those selling counterfeits than those who own them.

Percentage of harmful goods shows significant increase

While counterfeit apparel and footwear are the most common phonies, the number of potentially harmful goods found is the biggest concern for the RCMP. These products, such as imitation medications made with dangerous ingredients, are potential public safety threats.

Just two months ago, the RCMP joined forces with international police to inspect packages coming in through the Canadian postal system. They were looking specifically for counterfeit pharmaceuticals and in just one week, discovered over a million dollars in counterfeit drugs–from weight-loss pills to muscle relaxants.

The drugs were found during what is known as Operation Pangea. This is an international project run by INTERPOL. It started in 2005 and is aimed at fighting online sales of fake medicine. This year, the annual week-long project helped police in 99 countries shut down thousands of websites which were selling fake medications.

Counterfeit goods hurt the economy

Not only are counterfeit goods potentially harmful to health and safety, they are alsocausing problems for the economy. Last year, the RCMP seized over 38 million dollars in counterfeit products, most of which were discovered in Montreal, Toronto, and Vancouver.

In an attempt to catch counterfeits before they find their way to store shelves, the federal government introduced new laws in March. These new rules give more power to border officials when it comes to counterfeits.

New laws, bigger consequences

Bill C-56 brings with it two big changes. First, it says that border officials can include counterfeit items on the list of goods they search for at borders. This means that if they find something counterfeit, they can confiscate it and report to the police. Don’t worry if you have illegally downloaded music on your iPod or a movie torrent on your computer, the border guards can’t do anything. This new bill is focused on catching people who have counterfeit goods that they intend to sell.

The second change is that the bill increases the severity of punishments for those found guilty of possessing counterfeit goods for the purpose of selling them. In the most severe cases, a person could be sentenced to five years in jail for violating these laws.

The global problem with fakes and the Anti-Counterfeiting Trade Agreement (ACTA)

The bill also adds some new rules around intellectual property rights. This part of the legislation faced scrutiny from some members of the NDP like Charmaine Borg, who unfortunately was unavailable to comment for this article. During a meeting in the House of Commons, she questioned whether this new bill was a way for the Conservative government to give in to pressure from the United States to show support for stricter international laws governing intellectual property rights.

ACTA is a proposed international agreement to govern intellectual property laws. However, it has been rejected in places like the EU. The reason many organizations and governmentsdisagree with it is that it has a broad scope when it comes to intellectual property violations. For example, it would treat those caught with fake pharmaceuticals in the same way as those caught with fake sneakers. While eleven countries helped write the agreement, most of them have decided not to officially use it because there are so many concerns from citizens. In order for it to be used globally, six countries would have to agree, so far the US has support from Japan only. However, they have called on Canada to join them. This happened around the same time Canada enacted new counterfeit laws into legislation. The Canadian government has still not said whether or not it will support this agreement.

Putting an end to counterfeiting in Canada

The RCMP continues to tackle the problem of counterfeiting. One of their main goals is to raise awareness of the dangers of buying products online, especially medications. In an e-mailed correspondence, RCMP spokeswoman Laurence Trottier wrote, “Counterfeit medications, as with any counterfeit product, are not tested and do not meet safety standards. These products can lead to serious personal injuries and even death.”

While both the government and most advocacy groups agree that counterfeiting is a problem, the way it will be tackled remains a mystery. The internet is one of the reasons this industry is so difficult to regulate. As the federal government, citizens around the world, and international agencies struggle to find the balance between regulations, personal freedom, and intellectual property rights, they can all agree with Trottier on one point: “The public plays an important role in keeping their communities safe. They can do this by respecting laws, cooperating with law enforcement, and by sharing any information on illicit activity with law enforcement agencies.”

A local group designed to help immigrant women in Halifax has not received government funding since 2009, after its current executive director was accused of mismanaging money from a federal grant the group received in 2008.

AWEDA was founded by Rosamond Luke in 2005. The group was formed to help immigrant women in Halifax find jobs and learn skills to help them in the workforce. Photo Courtesy of aweda.ca

Five years after Rosamond Luke was accused of mismanaging a $142,700 grant from the Status of Women in Canada and a $38,000 grant from the IWK community grants program, the All Women’s Empowerment and Development Association is still working quietly in Halifax. Brenda Saunders-Todd, the former chair of AWEDA, was surprised to learn that the group wasstill active.

“I am unaware of it (AWEDA) continuing operation, and… can’t imagine who would be providing support?,” said Saunders-Todd in an email.

Looking for money

Not only is the group still running, but Luke is still its executive director, lobbying for funding from government groups to help fund programs within AWEDA to help immigrant women in need gain employment training.

On Aug. 22, 2013, AWEDA renewed its status as a lobbying group for another six months. The group has been registered with the Office of the Commissioner of Lobbyists of Canada since June 25, 2009.

Saunders-Todd was involved with AWEDA in 2008, and her surprise stems from the knowledge that she was one of two people who saw the group close in 2008.

On May 3, 2008 the All Women’s Empowerment and Development Association (AWEDA) was given a $142,700 grant from the Status of Women in Canada. Six months later, problems with AWEDA became public after its executive director, Rosamond Luke, was suspended for not being open about her past history, including charges against her in 2006 for uttering threats. A few days after Luke was suspended, Brenda Saunders-Todd, now former AWEDA Board Chair, discovered that most of the group’s money was gone.

Saunders-Todd and Glazebrook took control of the group in September 2008, and closed the group as a result of lack of money to keep the group running. -Photo courtesy of MetroNews

According to Saunders-Todd, the group closed shortly after she and Dr. Patricia Glazebrook, another former board member, discovered that, after taxes, the group had only $2,300 left.

AWEDA closes

Shortly after Saunders-Todd and Patricia Glazebrook, a former AWEDA director, suspended Luke they began to look at the group’s money and spending records. According to court records, after the two went to Credit Union Atlantic to look into AWEDA’s spending and money owed was paid to Revenue Canada, the group did not have enough money to continue, so Saunders-Todd and Glazebrook made a decision to close the organizations doors.

According to court documents, some of the group’s cheques had been made out to cash and others were paid to Luke.

Luke refused to comment, but in an email she denied the accusations against her. “I am doing great and I am blessed and if those accusations were accurate I wont (sic) be here today,” she said.

Because the group closed, the Registry of Joint Stock companies shows that they defaulted for non-payment on Dec. 4, 2008. The group was re-activated the next day, Dec. 5, 2008.

Two days after the group closed, Dec. 6, 2008, it was active and holding its Annual General meeting. Neither Saunders-Todd nor Glazebrook were present. At the meeting, Luke was re-instated as executive director by a newly appointed board of directors. This action, according to Saunders-Todd, was not legal.

According to the Societies Act, any change in a group’s board of directors must be filed within 14 days of any changes. At the time, no change had been filed when Luke was re-instated. The change of directors was filed Dec. 10, 2008.

Government audit

On January 14, 2009, Saunders-Todd received a letter from the Status of Women in Canada that it was looking into performing an audit on the groups use of the grant money. Luke also received a similar letter.

According to Saunders-Todd, Status of Women determined that the audit would cost too much, and “they would not be able to recover the funds.” Status of Women was not able to comment in time for publication.

Court Cases

In a small claims court case, Luke made claims against Saunders-Todd, Glazebrook and Grant Machum, asking that AWEDA property be returned and claiming for personal itemsthat Luke also claimed had been taken. The first hearing for the case was on February 17, 2009.

On February 18, 2009, the day after the small claims court case was first heard, Luke was accused of stealing from the Nova Scotia Liquor Corporation (NSLC). According to court records, Luke was charged with possession of stolen property on Oct. 28, 2010.

The small claims court judge dismissed the two claims and Luke was ordered to pay Machum for the costs of the case, $848.79.

Despite the initial ruling, Luke tried to appeal the case on October 10, 2009. She claimed that the judge, Judge Walter Thompson, was biased, because he had a connection to Credit Union Atlantic, the bank where AWEDA had its account. Peter Bellworthy, the Credit Union vice president, was a witness in the first court case, and Luke claimed bias because the Judge Thompson and Bellworthy knew each other, and so Thompson had personal interest in the matter.

Luke also tried to appeal for bias, because Thompson said that AWEDA was not a corporation, but, according to the earlier court document, AWEDA was not a corporation, because the guidelines and bylaws of the group were not being followed in September 2008.

The Supreme Court judge dismissed Luke’s appeal, and no other court cases were filed.

Raising concerns

Saunders-Todd is not the only one who questions the group’s status. Colin MacDonald, a former volunteer fundraiser and former patron of the group also did not know the group was still active.

MacDonald was involved with AWEDA when it was in the planning stages. He donated money and encouraged others to as well. Looking back, he regrets his actions.

When the group first began in 2005, it was funded by donations from patrons like Colin MacDonald, a former fundraiser and patron of the group, who was involved with AWEDA during its planning stages.

He distanced himself from the group after he began to disagree with how the group was using money. “There was some things I didn’t agree with which entailed spending money on issues that I just found very difficult to believe that they needed; expensive office space, etc.,” said MacDonald.

MacDonald offers this caution when it comes to AWEDA, “I was stupid enough to give funding to the group to begin with,” he said. He did all he could for AWEDA, before he walked away from the group.

Leading a group

Saunders-Todd is no longer in contact with Luke or AWEDA, but she currently works with Dress for Success Halifax, a community group that helps women in need find clothes for job interviews and tools to help them get jobs. For her, it’s important to know who is leading a charity.

“I think it’s extremely important to know ‘who’ is leading or running these groups,” she said in an email.

Carol Haughton wins appeal, but it’s a long road to a fresh start

Carol Haughton’s appeal was granted Aug. 16. PHOTO BY KAMLOOPS DAILY NEWS

A four-year court battle ended last week with animal cruelty charges against a Kamloops, B.C. cattle breeder overturned, but the verdict does little to change the damage done to the woman’s reputation and livelihood.

On Aug. 16, a judge ruled in favour of Carol Haughton’s appeal, expunging her record and going against an original supreme court decision convicting her of animal cruelty.

“The verdict was a good thing, but I was so in shock at the time. I went through four years of hell and you don’t get over it in just a few minutes,” said Haughton. “I’m still in shock actually.”

The 62-year-old has loved animals her “entire life,” and the events that led to the seizure by the BC SPCA of 26 of her Great Danes and six cats on June 13, 2009 were devastating.

“On June 5, 2009, Ms. Haughton travelled to Alberta. She returned to her home in Kamloops on June 14, 2009. During this period, her son was to care for the dogs and cats,” thesupreme court documents read.

The SPCA had received a complaint from Dennis Copeland, a friend of Haughton’s estranged husband Jim Haughton, about the welfare of the animals.

The court judgement document says “(Jim Haughton) and Copeland had attended to check on the welfare of the animals as they were concerned that Ms. Haughton was in Alberta and no one was caring for the animals.”

When the SPCA investigated on June 9, they posted a notice to call them for Carol, which blew off the door. It was not found until June 13 by her son, after a warrant was executed on the premises.

“On June 13, 2009, Jason Haughton arrived at the Separation Road residence to find the cats and dogs were not there.”

“My husband and I are in the middle of a divorce. I get half the ranch and he doesn’t want me to get anything. He’s been fighting tooth and nail to get rid of me. He used the law and SPCA to do it, and they did a great job,” said Haughton.

Video evidence showed “household garbage in the yard and kennels as well, such as cans, pails and plastic jugs … General mess as well as considerable destruction evidently wreaked by the dogs … During the playing of the video, those in attendance could be heard gasping for air and gagging on the smell.”

Haughton was convicted of animal cruelty after a June 2012 trial and was given two years probation and a day of jail, which counted as time served. She also spent two months in prison previously for breaching a court order by having a cat in her residence after the seizure.

“It just killed me. it was devastating,” she said. When she appealed, she wasn’t sure what to expect.

“In an appeal, the judge has to rule against other judge, but they hate it. That judge was wrong and biased,” she said.

Haughton’s lawyer, Dale Pederson, was pleased with the verdict but felt it was a little late.

“With Carol, that conviction was enough to destroy her psychologically and mentally. I doubt she’ll ever recover,” he said.

“She would have trouble collecting mail and people would stare at her like she was a criminal. I’m happy she won her appeal, but it will never redeem what she went through.”

The BC SPCA didn’t know the specifics of the case, but commented generally on their disappointed at the overturned conviction.

Marcie Moriarty, spokesperson for the group, said it was a “step back in precedent for animal cruelty.”

“My understanding is there was discussion around the fact that because she left her son to care for the animals she wasn’t responsible … If a person is responsible for animals and they leave, there is an expectation they make a reasonable decision as to who should take care of them.”

She said the standard of care in the home wasn’t even acceptable prior to Haughton leaving.

“I just hope should she once again enter the breeding arena, she will be aware of the law and standards of care that need to be met.”

BC SPCA website screenshot of their press release from Haughton seizure

 

Haughton is still dealing with the blowback of her conviction, despite being absolved of the crime.

“My credit is ruined. I’d been breeding cattle for 35 years and it took me that long to build the ranch and own the animals I did. I would never live long enough now to build that herd again.”

Over the last 18 years, few people have returned to provincial court to be formally charged a second time, after not living up to their agreement to complete adult diversion Continue reading→

A Nova Scotia doctor is facing charges of fraud and forgery, but this is not his first brush with the law. Dr. Dinesh Sinha (Sihn-Ha), who was arrested in connection with a pot bust last year, will appear in court on August 27on unrelated charges. He is accused of creating false records and billing the province for work that he did not do.

Sinha’s lawyer did not return phone calls so it is unclear how these charges came about, but the provincial government does do random checks to ensure that doctors are billing the province accurately. When asked about the charges, Sinha said that he had no comment.

College of Physicians and Surgeons lifts suspension

When Sinha was arrested on December 14, 2012, he was charged with selling prescriptions for medical marijuana. His license to practice medicine was temporarily suspended by the board in charge of disciplining doctors in Nova Scotia. In a phone interview, Dr. Douglas Grant, CEO of the College of Physicians and Surgeons of Nova Scotia, said, “the suspension was lifted when the committee came to an agreement that the public safety concern had been addressed.” The charge against Sinha for selling medical marijuana prescriptions was eventually dropped.

The college has chosen not to suspend Sinha’s license again in view of these new charges of fraud and forgery. Grant would not comment on the new charges but he did say that the college will wait for the criminal proceedings to play out; then it will determine whether or not further action should be taken. The most serious penalty the college can impose is to revoke or annul a doctor’s license.

Physicians and medical marijuana laws

Sinha is not the first doctor to be nabbed by the long arm of the law in relation to medical marijuana prescriptions. Dr. Rob Kamermans was charged with selling medical marijuana prescriptions and accused of over-prescribing cannabis. He is allowed to practice, but is now restricted from prescribing pot.

In an exclusive interview, Sinha said that he would no longer prescribe medical marijuana despite being a firm believer in its benefits. That interview was conducted before he was confronted about the new charges.

Canada’s medical marijuana laws constantly changing

Canada started offering medical marijuana in 2001. Since then the medical marijuana lawshave undergone several changes.

As it stands, patients who are prescribed medical marijuana by a physician have only two options: they can either apply to the government for a license to grow marijuana or they can get their prescribed marijuana from an already licensed grower.

Sinha wonders why the RCMP is so worried about marijuana. He says patients who use drugs like Demerol and morphine are at greater risk of developing addictions than those using marijuana, yet law enforcement does not seem to be concerned with how those drugs are being prescribed or used.

Sinha believes that seeing arrests and charges connected to medical marijuana will discourage doctors like him from prescribing marijuana, even though it may be a safer and more effective treatment for some patients such as those suffering from epilepsy, cancer, anorexia, and other ailments.

However, the number of medical marijuana users actually increased by 104 per cent between January and December 2012 and the number of people licensed to grow it has increased significantly as well.

What’s next for marijuana legislation?

Marijuana has been making headlines recently as Liberal Leader Justin Trudeau publicly advocated for  legalizing the drug. Sinha is on the same page: “Alcohol is much more dangerous than marijuana, yet it is openly sold. I do not understand why the government is so picky about it [marijuana].”

Nova Scotia-wide doctor shortage has Steven Hall taking in new patients regularly

Booking photo from Dr. Steven Hall’s May 2009 arrest for the murder of his wife, Isabel. Hall was eventually convicted of second-degree manslaughter in the case.Some residents are outraged convicted felon Dr. Steven Hall has opened a new practice in Sydney, N.S., but with a doctor shortage in the area they have no choice but to seek his expertise.

Some residents are wary of convicted felon Dr. Steven Hall, who opened a new practice in Sydney, N.S. However, with a doctor shortage in the area they have no choice but to seek his expertise.

A Cape Breton woman, who chooses to remain anonymous to protect her job, said she had to call when she found out Hall had openings.

“It’s out of desperation that I’m going there. If there was anything else I could do, I wouldn’t go. It comes down to a trust issue. I wouldn’t trust him knowing his past,” she said.

Hall was released from prison in January 2012 after being convicted for the May 29, 2009 accidental killing of his wife, Isabel Hall, originally from Sydney River, N.S. The incident happened while the couple were living in Kentucky.

His patient knew all about his record when she took the appointment, but did so anyway for her family’s health and well-being.

“I don’t think I should ethically or morally see him, but beggars can’t be choosers … He’s the only doctor in industrial Cape Breton taking patients.”

The appointment is less for her and more for her two children.

“What’s a mom to do? I can’t not have a doctor for my children. Someone put him there and gave him authority, and here I am with no doctor. If he wasn’t there I’d still have no doctor.

While some people are telling the patient she’s made a mistake, she’d given out the practice’s number to three people at the time of the interview.

“We need doctors down here that bad. Your first thought is ‘that is terrible,’ but your second thought is, ‘is he seeing new patients?’”

 Hall returns to roots

Hall has been keeping a busy office since he started back last Monday. He said patients have been “extremely grateful” to see him.

“There’s such a high demand for doctors. There’s a waiting list of 1,000 people, but we have been able to give 500 appointments,” said Hall on Friday.

He said when the Chronicle Herald’s article came out, he was worried how the press would affect patients, but there was actually an increase in bookings.

“Today we had about 50 people call and want to be patients … A lot of people didn’t know that a doctor was available. We have so many people wanted doctors and they don’t care whether I’m a bank robber or whatever.”

Hall came back to Nova Scotia, where he originally went to university, because he wanted to be back with family and those close to him.

“I came to be closer to my wife’s family and her grave. She is buried here,” he said.

Hall comes back to Nova Scotia as the province sits in the midst of a serious doctor shortage.

The 2012 government report Shaping Our Physician Workforce said “while there is planning at the district level, there has been little province-wife planning to determine what types of doctors are needed where.”

In 2011-2012, Nova Scotia had fewer family doctors and more specialists than the national average.

“The current mix is 42 per cent family physicians to 58 per cent specialists, while the national mix is 50-55 per cent family physicians to 45-50 per cent specialists.”

Lorianne MacLean, the coordinator for physician recruitment at the Cape Breton District Health Authority, said in an emailed statement that 31 per cent of family physicians in the area will retire by 2020.

“Family physician shortages means that the demand for non-urgent care increases in emergency departments.  This is a higher cost to the tax payer, and more importantly can lead to fragmented care for the person seeking care,” the statement said.

The statement said the health authority was working on “collaborative care models” with the province to fix the shortage. Hall was hired to replace a retired physician in Sydney.

“With respect to giving him credentials to work in the district, his record came into play.  The College of Physicians and Surgeons of Nova Scotia conducted a comprehensive review of his case, and ruled he was eligible to practice in Nova Scotia under the condition of having a mentor,” the statement said.

He is working under a doctor at the Sydney Family Practice, but had to go through a year-long process of examinations by the board that grants the right to practice first.

The College of Physicians and Surgeons of Nova Scotia approved his application and did a two-day clinical competency examination, written and oral exams and a 13-hour psychiatric examination. The college didn’t return calls for comment on the exact procedures Hall had to go through.

Hall maintains his innocence, although five witnesses stated in trial they saw Hall accelerate his pontoon boat over his wife after she fell into the water on Herrington Lake, in Kentucky.

“(Tara) Silbersdorf testified that she watched Hall turn his boat toward Isabel and accelerate ten to twenty feet,” the Court of Appeal document stated.

Hall was sentenced August 16, 2010 for 2nd degree (accidental) manslaughter. His appeal was denied Oct 21, 2011, and remained in prison until January 2012, serving 36 months after he was sentenced. However, he was never released on bail between his arrest and the trial.

Doctor putting life back together

Hall is still devastated by the loss of his wife.

“Isabel was the love of my life. We were married 21 years, we never fought and we were both faithful to each other. Isabel’s loss is tremendous. She was the mother of my children,” said Hall.

Her sister, Susan MacVicar stated her family was “dealing privately with the matter.”

She called Isabel an amazing woman and said the family holds no ill will toward Hall for the incident that caused his wife’s death.

As for the meantime, Hall is looking forward and trying to put things back together.

“I’m trying to put the interests of my boys first. I have my medical career on track and I finally have the chance to be a productive citizen after doing nothing for four-and-a-half years.

The company blamed soft sales in seasonal clothing for decline

Retail company Target continues to open Canadian stores despite a 28.5 per cent drop in profits during this year’s first quarter.

The company blames softer-than-expected sales in “seasonal and weather-related categories” for the dip, which saw after-tax profits fall from $697 million to $498 million.

The company refused requests for an interview and wouldn’t discuss first quarter results. It wanted to wait until the Aug. 21 unveiling of the second quarter results to discuss financials.

The March 2013 sale of their customer credit card receivables to TD Bank Group allowed for a pre-tax gain of $391 million within the company. However, the company paid off debts of$445 million. They declined to specify who they paid back, but the payment combined with the softer sales in the U.S. accounted for the striking change in finances last quarter.

Target could see long-term gains due to expansion

While the loss of profit could be a warning sign, Dalhousie’s economics department chair and professor Kuan Xu says the company’s financials could see large long-term gains.

“Zellers was bought by Target. They (Target) closed down profitable stores and suspended service. But they’re starting to inject their new format and product in hopes of gaining more revenue,” said Xu.

He says any new investment will “generate some additional revenue as well as profit,” but those gains may not be seen in the short-term.

In Canada, costs incurred from opening and renovating stores left the Canadian segment of the company with a $205 loss in earnings before interest and taxes (EBIT).

But Target made clear it was happy with the performance of its stores north of the border.

“We saw a surge in sales in Canada soon after opening our initial stores, especially in home and apparel,” Target said in an emailed response.

They said sales in Canada have recently leveled off, but say their guests are “responding positively to the brands and products that differentiate us in the marketplace.”

To date 68 stores have opened in Canada, including 44 since the end of the first quarter.

Target plans to open their first stores in Atlantic Canada and Quebec in the fall, and in the end should have 124 stores by the end of the year, according to their emailed statement.

“There’s a disconnect between what you read in the quarterly report, and what can come in the future,” said Xu. “With any new investment you won’t expect profits to turn around quickly.”

He says the replacement of Zellers with Target is something “most Canadians are looking forward to.”

“There are upsides to taking over companies or expanding and some Canadians will be happy to see the competition and products with a low price.”

But he warns the Target will have to differentiate itself from competitors like Wal-Mart to be successful.

“You can’t differentiate much in products and merchandise. But you can differentiate in service, layout and attracting the consumer.”

Going forward, Target will have to find a way to set itself apart in a new market.

“They will have to diversify … The big U.S. companies cannot rely on the domestic market alone to continue to grow,” he said.

“The retail space is crowded. Canada is certainly a new market to get into for Target.”

Increasing silver sales is the focus for jewelry giant Tiffany & Co. this year. According to the company’s quarterly report, overall sales are up 9 per cent but silver sales are lagging.

Source: Tiffany & Co. annual report

High-end jewelry sells well, silver lags

Tiffany’s more expensive products, which are mostly necklaces and rings made of rare coloured diamonds encased in platinum, are meeting sales goals. On the other hand, silver jewelry, which makes up most of Tiffany’s cheaper products in the form of rings, necklaces and pendants, is selling poorly compared to a few years ago, according to Mark Aaron, Tiffany’s Vice-President of Investor Relations.

In an attempt to improve silver sales, the company is creating and promoting new, elaborate silver items. Some of the new products that landed on shelves this spring include the Ziegfeld collection, which contains several silver items made with freshwater pearls and onyx. Aaron says that these new products have a higher price tag than previous silver pieces. He hopes that when the second quarter report comes out later this month, it will show an increase in profit from silver sales.

Aaron noted that in the past, silver jewelry accounted for a quarter of Tiffany’s sales. He says the company would like to get back to meeting that target. In 2012, silver sales accounted for 21 per cent of the company’s total sales.

Is counterfeiting a contributing factor?

In Tiffany’s 2012 annual report, shareholders were advised that the company has been involved in lawsuits with groups and companies who have been making and selling counterfeit Tiffany products. Most counterfeit Tiffany products are made of silver. Coincidentally, this is also the area where Tiffany is lagging in sales. In the 2012 annual report, Tiffany voiced concerns about the impact counterfeiting could have on the company:

“In recent years, there has been an increase in the availability of counterfeit goods, predominantly silver jewelry, in various markets by street vendors and small retailers, as well as on the Internet. The continued sale of counterfeit merchandise could have an adverse effect on the TIFFANY & CO. brand by undermining Tiffany’s reputation for quality goods and making such goods appear less desirable to consumers of luxury goods. Damage to the Brand would result in lost sales and profits.”

 Wayne Edwards, Chair of the Canadian Anti-Counterfeiting Network, says a lot of companies don’t want to talk about counterfeit goods. He says companies don’t want consumers to associate their products with counterfeiting because they may choose to go elsewhere out of fear of not knowing whether they are buying real or counterfeit items.

Edwards also adds that it is difficult for companies like Tiffany to give statistics about counterfeiting. He says everyone knows counterfeit products exist, but that it is difficult to say how prevalent they are or how much they affect sales. The network released a reportlast year, which states “counterfeiting is responsible for billions of dollars in losses to the Canadian economy.” The federal government introduced new anti-counterfeiting legislationearlier this year, but Edwards says more changes are necessary to deter those making and selling counterfeit products.

Fighting counterfeiting

Groups like the Canadian Anti-Counterfeiting Network, based in Toronto, focus on raising awareness about counterfeit goods. They hold seminars and also offer training to groups like the RCMP about identifying counterfeit products.

Edwards offers some simple advice to consumers, “If the price of something, whether it’s a designer ring or an electrical part, seems too good to be true, it probably is.”