Counterfeit Products

Extracted Attributes

• Nature

  Illegally manufactured or sold goods that violate trademarks

• Quality

  Typically lower quality

• Primary Risks

  Health and safety risks (e.g., malfunctions, electrical failures, fires, toxic materials, missing active ingredients in pharmaceuticals, containing harmful substances like fentanyl, catastrophic consequences from automotive parts)

• Environmental Impact

  Use of toxic materials, dumping production waste, short product lifespan

• Distribution Channels

  Local markets, online retailers, small parcels (de minimis trade)

• Economic Impact (2019)

  Approximately 2.5% of world trade

• Estimated Value (2019)

  $464 billion USD

• Projected Value (2030)

  €1.67 trillion (approximately $1.89 trillion USD)

• Scope of Industries Affected

  Luxury products, fashion (handbags, watches, shoes, sports jerseys), electronics, medications, pharmaceuticals, toothpaste, shampoo, makeup, perfume, automotive parts, electrical equipment, life jackets, batteries, smoke alarms

• Consumer Purchase Rate (U.S.)

  More than a quarter (26%) of consumers have bought a counterfeit product

• Associated Criminal Activities

  Funding for criminal enterprises (human trafficking, organized crime, drug dealing)

Timeline

• The World Customs Organization noted that counterfeit products destined for 140 countries were detected. (Source: web_search_results)

  2008

• Counterfeit goods made up approximately 2.5% of global trade, with an estimated value of $464 billion USD, according to the OECD. (Source: summary, wikipedia)

  2019

• Sales of counterfeit and pirated goods are projected to reach €1.67 trillion (approximately $1.89 trillion USD). (Source: summary, wikipedia)

  2030

Counterfeit consumer good

Counterfeit consumer goods, sometimes known as Knock-offs, are goods illegally made or sold without the brand owner's authorization, often violating trademarks. Counterfeit goods can be found in nearly every industry, from luxury products like designer handbags and watches to everyday goods like electronics and medications. Typically of lower quality, counterfeit goods may pose health and safety risks. Various organizations have attempted to estimate the size of the global counterfeit market. According to the OECD, counterfeit goods made up approximately 2.5% of global trade in 2019, with an estimated value of $464 billion. Sales of counterfeit and pirated goods are projected to reach €1.67 trillion (approximately $1.89 trillion USD) by 2030. Despite the illegality of counterfeit items, many counterfeit items, especially fashion items such as handbags, watches, shoes and sports jerseys, are widely sold in many regions and are purchased by both locals and tourists, typically at markets in Africa, Asia, Latin America and in major cities in Australia.

Web Search Results

• Counterfeiting: The Hidden Threat to Global Commerce

  In the realm of consumer goods, counterfeit products often fail to meet safety standards, posing risks to users. For example, counterfeit electronics can contain substandard components, leading to malfunctions, electrical failures, or even fires. Similarly, counterfeit fashion items may be made from toxic materials that can cause skin irritations or other health issues. The use of such low-quality materials not only endangers consumers but also tarnishes the reputation of brands associated with [...] Counterfeiting creates a heavy burden on legitimate businesses and global economies. It is estimated that the global trade in counterfeit goods accounts for over $500 billion annually, representing approximately 3.3% of world trade. For businesses, the immediate consequence of counterfeiting is revenue loss. Counterfeit products, often sold at lower prices, attract consumers who might otherwise purchase genuine items. This deviation of sales not only reduces the income of legitimate companies [...] Counterfeiting is an underground industry that poses significant threats to economies, businesses, and consumers worldwide. It involves the unauthorized reproduction and sale of products, often imitating high-value items like luxury goods, pharmaceuticals, electronics, and everyday consumer products. This article delves into the multifaceted challenges of counterfeiting, exploring its economic, social, and health impacts, the underlying mechanisms that facilitate its creation, and the

• The Truth Behind Counterfeits | U.S. Customs and Border Protection

  Consumer products like toothpaste, shampoo, makeup, or perfume. Counterfeit pharmaceuticals that are missing necessary active ingredients or those that contain fentanyl/other opioids. Counterfeit automotive parts like airbags and brake pads that result in catastrophic consequences for the driver and other motorists. [...] Counterfeit goods are often manufactured to fund criminal enterprises, thus threatening the innovative capacity of U.S. businesses as well as the livelihoods of everyday Americans. Purchasing authentic goods through reputable sellers supports U.S. economic growth and fosters healthy competition between U.S. businesses. The Truth Behind Counterfeits [...] Image 8: World map showing countries with highest MSRP Health and Safety Many counterfeit products are made with substandard materials or components and can be hazardous to your health. This includes:

• The Impact of Counterfeit Goods in Global Commerce - Ocean Tomo

  Counterfeit products from electrical equipment and life jackets to batteries and smoke alarms may be made without adhering to safety standards or be properly tested. These products may fail to function when you need it and may lead to fire, electric shock, poisoning, and other accidents that can seriously injure and even kill consumers. [...] Though it is still possible to find counterfeit products at local markets, a large number of counterfeit goods are obtained through online retailers and shipped directly to consumers as small parcels classified as de minimis trade. This allows for the duty-free import of products up to USD 800 in value. Counterfeit items may be knowingly or unknowingly purchased from online retailers and shipped directly to consumers, duty-free. Purchased products can be shipped via postal services, classified [...] Whether counterfeit money, clothing, shoes, electronics, cosmetics or pharmaceuticals, the first step in fighting counterfeits is detecting them. In some cases, the counterfeit product is obvious. A leather product may not be leather, a logo may be wrong, packaging may have a spelling mistake, or a holographic label may be missing. These products may be seized by customs. However, some counterfeit products are very difficult to detect. In the case of a counterfeit memory card with less than the

• Counterfeit goods: a bargain or a costly mistake?

  The value of counterfeiting is estimated by the OECD to be in the region of $250 billion per year, while the World Customs Organization has identified counterfeit products destined for 140 countries. One of the most harmful forms of counterfeit goods is fraudulent medicines, with sales from Asia to South-East Asia and Africa alone amounting to some $1.6 billion per year. It is estimated that one third of malaria medicines used in East Asia and sub-Saharan Africa are fraudulent. [...] It is a truly transnational problem. The World Customs Organization noted that in 2008 counterfeit products destined for 140 countries were detected. In many countries the absence of deterrent legislation encourages counterfeiters, since they have less fear of being apprehended and prosecuted than they would for other crimes. Counterfeiters engage in elaborate plans to disguise their activities. They establish fictitious businesses and front companies. They exploit border-control weaknesses and [...] www.oecd.org/dataoecd/57/27/44088872.pdf. This figure does not include domestically produced and consumed counterfeit products nor the significant volume of pirated digital products being distributed via the Internet. If these items were added, the total amount of counterfeiting worldwide could be several hundred billion dollars more.

• Counterfeits Do More Than Economic Harm

  When people think of counterfeit items, they mostly think of accessories and apparel. However, the safety standards we develop affect products that pose a significant risk to safety, from electrical equipment and life jackets to batteries and smoke alarms. When those products are manufactured to safety standards, they are built and tested to protect against negative outcomes like fire, electric shock, poisoning, and other accidents that can seriously injure and even kill consumers. [...] More than a quarter (26%) of U.S. consumers have bought a counterfeit product. And while many buyers may assume they aren’t getting a genuine designer handbag for $20, they may have a harder time distinguishing, for example, a counterfeit lithium-ion battery from the original manufacturer item. [...] Counterfeit sales may fund criminal enterprises that engage in human trafficking, organized crime, drug dealing, and other illegal activities. Further, the environmental consequences are significant. Fake goods are made quickly and cheaply, using materials that may be toxic, dumping production waste into waterways, and creating a product that is likely to end up in consumers’ trash in short order.