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