Counterfeiting Consequences

The counterfeit industry is Much Bigger competition
than legitimate competitors…

 

While the illicit trafficking of counterfeit goods is often perceived as a “lesser crime”, the consequences can be quite serious, with the costs going far beyond just the illegal copying of products.

 

Brand Owners/Manufacturers

  • Higher purchase costs due to additional costs related to security and tracing systems, litigation, and civil enforcement
  • Detrimental economic impact
  • Damage to brand reputation

Consumers/End Users/Society

  • Threat to Public Health and Safety
  • Negative environmental impact
  • Labor exploitation
  • Offers criminals a complementary source of income and a way through which they can launder money
  • Criminals use profits from the sale of counterfeit goods to further other illicit operations

Governments/Revenue Agencies

  • Higher medial and social security costs
  • Lost tax and customs duties revenues