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Contraction of fake and fireplace, so it looks like a fireplace but does not have the chimney, ability to burn logs, etc. They can be anything from extremely tacky and fake-looking (that fool nobody), all the way to ones that have gas logs and are vented and look pretty. They may or may not give off heat, but pretty much all of them are intended to give the illusion of burning logs and the reality is that they do not and cannot. This is different from a real fireplace with gas logs or other means because someone doesn't want the problems associated with starting wood fires, etc. A fakerplace is one that cannot burn wood.
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