This paper looks into why consumers choose to purchase counterfeits online and if and how this affects brand image. It seeks to explain what it is that is prevailing in choosing to purchase counterfeit merchandise online as oppose to genuine merchandise or generic goods online as well as through traditional distribution channels. Online interviews with consumers of counterfeit merchandise have been conducted. Findings: The interviews have shown that the most important factors that consumers of counterfeit merchandise online consider are conspicuous value and price. This paper also shows how luxury brands own websites can be a liability adding in online fake sales. This paper only explores actual consumers of counterfeit merchandise; a further study should focus on online consumers of genuine goods and their perceptions toward online sales of counterfeits.