LVMH, Prada and Cartier turn to blockchain to fight fakes
Three of the world’s top luxury goods companies are turning to the blockchain to try to halt the counterfeiting of their super expensive products.
LVMH (EPA:MC), Prada and Cartier (SWX:CFR) have set up a collaboration known as Aura that will prove that goods being bought are authentic and not knock-offs.
Louis Vuitton, LVMH’s luggage arm, has been working on cryptographic platform since 2019, said Bloomberg, and recently joined forces with Ethereum design studio ConsenSys on the anti-counterfeiting stamp.
At present that is all it will be used for said the report, with no plans by any of the three to start to accept cryptocurrency as a form of payment.
Fakes are a huge cost for the industry with LVMH alone said to employ 60 lawyers and spend tens of millions of dollars a year in legal cases against counterfeiters.
One report last year estimated the trade in counterfeit luxury goods at US$1.2trn with much of the activity being conducted online.