Counterfeiting

The post below by benji_t reminded me of an article I read recently regarding counterfeit goods. Although we typically associate this illegal activity with luxury goods (such as Rolex) it is a huge problem for many other "mundane" goods.

The article I read (in a manufacturing magazine) stated that the World Customs Organization (WCO) information reveals that counterfeiting goods is one of the fastest growth "industries" out there. Current estimates peg the value of counterfeit goods sold equates to 7% of worldwide trade. Back in 1982, they estimated the value of these goods to be something in the area of $5.5 billion US. By 1996, it had grown to $200 billion US, and today is estimated at $450 billion US.

Some people think that counterfeit goods are doing "no harm" and are simply a cheap alternative to the real thing. The fact is that these inferior goods cost governments tax revenue, companies profits (possibly leading to lost jobs), and generally drive up the cost of goods for those who purchase the real thing.

In addition, these goods might not always be safe. For instance, do you really think that counterfeit electronic items are really put through the safety tests that are done on the real items? One California boy found out last year when a counterfeit cell phone battery blew up his phone while he had it against his ear. He suffered cuts and burns as a result. Recently the RCMP (the Mounties) seized counterfeit electrical power bars and heavy duty extension cords in a Toronto warehouse. The items had forged safety certifications on them, and when tested the extension cords melted in a matter of seconds. The power bars had undersized wiring, so they overheated and ignited the plastic casing, which should have been made from fire resistant materials.

Until I read this article I had never really considered that small, inexpensive items would be counterfeited. Reading it has certainly opened my eyes to what is out there.

Thanks, Al

[JJ Irani]

Thanks, Al, excellent and very informative post. It's true about counterfeiting stuff being dangerous.

Back home in India, counterfeiting and replicating is the order of the day, the most prolific and lucrative being spare parts for the automotive industry.

The second largest manufacturer of 2-wheeler scooters happens to be Bajaj whose home happens to be in India. The counterfeit spares for this product is very BIG business back there. If you own a Bajaj scooter and need any kind of spares, it's imperative that you only visit an AD....otherwise your screwed.

Counterfeiters in third world countries thrive on this business. It's big time and is like a cancerous growth with enormous tentacles. There will never be an end to it.....NEVER!!

JJ

[Manatee]

I've been wary of knock-off good for many, many years. I've always been careful to avoid buying things from vendors who offer a suspicious blend of merchandise. "Lowest price" is NEVER my main criteria in making a purchase decision.

I'm grateful for the product standards and testing that are created to protect us from inferior and unsafe products. It's too bad that some people don't find that important, and all they care about is that a product has the right brand name on it. Of couse I realize there are some people who are so stupid that they'll buy household cleaning products and small appliances out of the trunk of somebody's car, and think they're getting the real thing.

[Rockrolex]

That's a good reminder that you get what you pay for. The reason counterfeit goods are so cheap is because they do not go through the quality control process that authentic goods do. After all, quality control takes overhead and cuts into your profit margin, particularly so when you are trying to undercut the real McCoy. Not to mention the fact that the raw materials are not up to standards and why you have such a high failure rate with counterfeits.

But as long as someone is out there offering a "bargain" there are people who are going to succomb to it. As P.T. said, "There's a sucker born every minute" and there's a crook out there ready to take advantage of the sucker.

[padi56]

Some Knock-off goods a very dangerous,remember seeing
a program about brake pads.They were fake Ferrodo brand
made in Thailand.They looked like the real thing,but when
they tested them.They took almost twice the distance to
stop as the genuine product,Can you imagine the outcome
of this,in a emergency situation.

[sullycape]

Here is something to ponder...

Most goods sold in the U.S. are made in China, and since China does not recognize personal property rights (everything belongs to the state) how do you know if what you are buying is "real" or "counterfeit"? To take it a step further with the exception of safety, does it really matter? Most products these days are made to last less than 5 years. Another reason I bought a Rolex.

[The GMT Master]

C'mon, this is a five year old thread.

[Route 66]

Originally Posted by The GMT Master

C'mon, this is a five year old thread.

Going on 6 years.

Who the heck is the OPer?

[The GMT Master]

Originally Posted by Stevarn

Going on 6 years.

Who the heck is the OPer?

He's been deleted from the Matrix