In late February, Mayor Michael Bloomberg's Office of Special Enforcement and the New York Police Department shut down 32 storefronts selling counterfeit luxury labels. The seizure totaled about $1 million in value. Despite the widely publicized enforcement, Canal Street has hardly quieted down; every few seconds a vendor tries to tempt us with brand names like Louis Vuitton, Rolex, Prada, Chanel, or Coach.

"They are excellent business people, they are excellent retailers, they are just dealing stuff that's illegal," Oberfeldt says.