Dangers of Counterfeit Goods

Next time you are walking in the city, or searching the web, and come across designer bags for extremely low prices, take the time to think about why the prices are so low. How can a $2000 handcrafted, Italian leather bag cost as low as $100 or even less in some situations? The counterfeit market is more prominent than ever before, ranging from pharmaceuticals, to electronics, and personal care products. The main problems associated with this worldwide issue contribute to the loss of genuine economic activity, the serious health risks involved, as well as diminishing the reputation and trust between a company and its consumers.

First of all, counterfeiting refers to the manufacturing and distribution of goods under a different name without the owner’s permission. Specifically, according to the World Trade Organization (WTO), counterfeiting is the “unauthorized representation of a registered trademark carried on goods identical or similar to goods for which the trademark is registered, with a view to deceiving the purchaser into believing that he/she is buying the original goods.” (WTO glossary)

Products are produced with cheap, hazardous materials that can be harmful to consumers, as well as the environment. The leading types of industries that are affected include software, electronics, luxury goods, personal care products, and pharmaceuticals. The most profitable of these is the counterfeit pharmaceuticals market, which causes legitimate pharmaceutical companies to lose out on billions of dollars every single year.

One of the main effects counterfeiting has on society is the serious health risks involved. There are countless vendors selling fake Covid-19 vaccines to desperate consumers. The reason these “vaccines” are highly discouraged is because they are not made to follow the proper standards and regulations. Not only does this put the consumers in danger, but it also can harm the reputability of genuine, government administered Covid-19 vaccines.

Another one of the many ways counterfeiting has a negative affect on society is the fact that it diminishes the reputation and trust between a company and its consumers. When an individual is making a purchase, they should be able to trust its authenticity. Counterfeit vendors are taking advantage of individuals and their families, destroying the trust between consumers and companies. As more people turn to online shopping, it is now more important than before to protect these businesses from illegal vendors diminishing their reliability. When a customer loses trust in a brand, they are likely to never make a purchase from the retailer again in the future, harming the potential sales and profits of that company.

From the consumers point of view, it is imperative to always take the time to do research whenever you plan on purchasing anything online that you are not buying directly from the retailer. Purchasing from illegal vendors is only expanding the amount of criminal activity, so be careful next time you are making a purchase. Overall, it is important for not only consumers, but it is also important for businesses to help steer their customers away from buying counterfeit products.