The National - News

Consumers urged to learn how to spot counterfei­ts from $464bn fakes trade

- KELLY CLARKE

Internatio­nal trade in counterfei­t and pirated products amounted to as much as $464 billion in 2019, with e-commerce spreading the sale of fake goods, a conference in Dubai has heard.

The numbers, from a report published by the Organisati­on for Economic Co-operation and Developmen­t (OECD) in the summer, were discussed at the EMEA Security Conference on Thursday.

The report estimated that 2.5 per cent of world trade is linked to counterfei­t items.

The goods, usually electronic­s, cosmetics, pharmaceut­icals, car parts and cigarettes, are typically of inferior quality and pose a threat not only to public health, but society as a whole.

Philippe Van Gils, head of illicit trade prevention at tobacco company Philip Morris Internatio­nal, called counterfei­ting a social and economic menace.

“We have to make sure our supply chain is as safe as possible,” he told The National.

“Knowing your customers, tracking origins of products and ensuring you know your points of weakness is crucial.

“It takes a network to fight a network. There has to be a clear and exhaustive strategy to tackle counterfei­t goods and fight trade fraud.”

The potential for physical harm to consumers from the use or consumptio­n of counterfei­t goods, accidental or intentiona­l, is clear, the conference heard.

Poorly manufactur­ed pharmaceut­icals, cigarettes and cosmetics can cause health problems, while faulty car parts can result in injury or death.

Another reason society suffers from counterfei­ting is the loss in tax revenue.

A group of people working within a sector of organised crime such as counterfei­ting are unlikely to declare earnings of their illegal enterprise.

In the tobacco industry alone, Mr Van Gils said, 12 per cent of products sold are counterfei­t, which contribute­s to a “$40bn to $50bn loss in global tax revenue”.

Educating consumers and harnessing technology are ways of tackling such organised crime.

Authoritie­s have to strengthen regulation­s and standards for import and export.

“It’s about being proactive, not just reactive,” Mr Van Gils said.

“Take technology developmen­t for example. The accelerati­on that took place because of Covid-19 was a good change from a consumer’s point of view.

“Usually, they are the victim and only find out a product is fake when they receive it, which is too late.

“Consumers can now scan codes on packaging to check if they are genuine or not, they have a platform on their phone whereby they can identify if it is fake or not.”

He said they could use such technology when browsing online, or at the place of purchase, and play a role in reporting illegal trade to the authoritie­s.

Indication­s can help a consumer to detect whether a product is genuine.

Examine the quality of the product, be wary of unusually low prices, check if logos and trademarks are displayed correctly and, when in doubt, contact or check out the website of the manufactur­er of the genuine product.

Mr Van Gils said that, in today’s world, “criminal groups are a moving target”, so it was

Consumers have a platform on their phone whereby they can identify if [a product] is fake or not PHILIPPE VAN GILS

Philip Morris Internatio­nal

necessary for organisati­ons to work together to combat the trade, including public and private companies, policing authoritie­s and the public.

He said that in recent years criminals in Europe had set up temporary counterfei­t factories and forced migrants to work in terrible conditions to produce fake goods.

Within three months, these criminals would pack up and move elsewhere.

Last year, customs officials in the UAE seized 923,724 counterfei­t goods.

The 2020 Intellectu­al Property Rights Report, which was issued by the Federal Customs Authority, identified hundreds of thousands of counterfei­t items discovered in raids.

The report said counterfei­t goods seizures by marine or sea transport represente­d 70.7 per cent of total seizures, followed by air cargo at 19.5 per cent.

Land transport and regular courier mail accounted for 4.9 per cent.

 ?? Antonie Robertson / The National ?? A suitcase of counterfei­t watches seized by Dubai Customs was later destroyed
Antonie Robertson / The National A suitcase of counterfei­t watches seized by Dubai Customs was later destroyed

Newspapers in English

Newspapers from United Arab Emirates