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Date: April 30, 2024 Tue
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Results for counterfeit goods
30 results foundAuthor: Hubschle, Annette, compiler Title: Organised Crime in Southern Africa: First Annual Review Summary: In 2005 representatives of the Institute for Security Studies (ISS) and the Secretariat of the Southern African Regional Police Chiefs Cooperation Organisation (SARPCCO) discussed the lack of reliable information and research on organised crime and how it impacted on law enforcement in southern Africa. The lack of credible homegrown research data ultimately led to the conceptualisation of a joint research project between the Cape Town-based ISS Organised Crime and Money Laundering Programme and SARPCCO. The Enhancing Regional Responses Against Organised Crime (EROC) Project commenced in January 2008 and concludes in December 2010. The objectives of the research are to: Provide in-depth information on contemporary organised criminal activities in the sub-region to policy and decision makers; Analyse the transnational dynamics of organised criminal groups and networks; Determine whether, and to what extent, links exist between organised crime and terrorism; Consider and document the role that corruption plays in organised crime; and Evaluate the capacity and effectiveness of law enforcement agencies in the sub-region to overcome organised crime. This report comprises the research findings of the first year of data collection (2008) for the EROC project. It is the first of three such reports that will be published by the ISS in collaboration with SARPCCO. It looks at selected organised criminal activities and observed levels of prevalence in 12 southern African countries. Research questions, methodologies, limitations and ethical considerations are discussed in detail. Due to the lack of statistical and quantitative data, the report relies mostly on qualitative methodologies. Representatives of law enforcement agencies, government departments and para-statals, civil society, business and professional associations, academics, prisoners, former gang members and members of the broader communities whose lives have been affected by organised crime, were consulted in one-on-one interviews, focus groups, observations and workshops. A team of field researchers led by a research coordinator collected the data presented and analysed in this report. The research was informed by a working definition of organised crime which was jointly developed by the heads of criminal investigation departments in southern Africa and the research team. The report shows that the more serious forms of crime in terms of the monetary value involved or the potential harm they cause have a transnational dimension, both in terms of being committed by people of varying nationalities and in terms of affecting more than one country. It has been established that organised crime in most countries is underpinned by corruption, which is either a facilitating activity or an organised criminal activity in its own right. The geo-political and economic environments of individual countries amplifies the significance of specific criminal activities, the commonest forms of which have been identified as stock theft, theft/hijacking of motor vehicles, cultivation of marijuana and a broad spectrum of economic crimes. Further, the research has shown that although economic crimes may not be as prevalent as other forms of crime, statistically their impact on the society and the economy are far reaching. Furthermore, the effectiveness of law enforcement against organised crime has been put in the spotlight. Details: Pretoria, South Africa: Institute for Security Studies, 2010. 101p. Source: Internet Resource: Accessed February 11, 2011 at: http://www.iss.co.za/uploads/OrgCrimeReviewDec2010.pdf Year: 2010 Country: South Africa URL: http://www.iss.co.za/uploads/OrgCrimeReviewDec2010.pdf Shelf Number: 120675 Keywords: CorruptionCounterfeit GoodsDrug MarketsFinancial CrimesHuman TraffickingMoney LaunderingOffenses Against the EnvironmentOrganized Crime (South Africa)PoachingSmugglingStolen Motor VehiclesWildlife Crime |
Author: Padavan, Frank Title: The Golden Door: Illegal Immigration, Terrorism and the Underground Economy: With a Focus on the Counterfeit Goods Trade and Analysis of the 2000 Census Summary: In 1994, Senator Frank Padavan, then Chairman of the Senate Committee on Cities, released "Our Teeming Shore," a report reflecting extensive research and public hearings on "federal immigration policy and its impact on the City and State of New York." That report concluded that New York State and its localities were spending over $5.6 billion annually as a result of federal immigration policy: $2.1 billion in social service costs; $270 million for criminal justice and corrections; and $3.3 billion in elementary and secondary education expenditures, all unreimbursed by the federal government. As a result of Senator Padavan's landmark research -- New York State was among the first in the nation to document the impact of federal immigration policy at the state and local level -- the Senate Majority Task Force on Immigration was created. A second report, a year later, confirmed the findings of the first. In "The Golden Door: Illegal Immigration, Terrorism and The Underground Economy," Senator Padavan updates the topics discussed in the earlier reports, with a focus on the counterfeit goods trade, its link to terrorism, and its cost to taxpayers. Details: Albany, NY: New York State Senate Majority Task Force on Immigration, 2005. Source: Internet Resource: Accessed April 28, 2011 at: http://www.nysl.nysed.gov/scandoclinks/ocm64195701.htm Year: 2005 Country: United States URL: http://www.nysl.nysed.gov/scandoclinks/ocm64195701.htm Shelf Number: 121573 Keywords: Counterfeit GoodsIllegal AliensIllegal ImmigrationImmigrantsImmigration PolicyTerrorism |
Author: Padavan, Frank Title: The Counterfeit Connection : The Counterfeit Goods Trade, Intellectual Property Theft and Terrorist Financing: With a Discussion of Illegal Immigration, Alien Smuggling and Human Trafficking Summary: This report focuses on the counterfeit goods trade and its connection to terrorism financing. The purpose of the report is to explore the connections between illegal immigration, including alien smuggling and human trafficking, and the counterfeit goods trade and terrorist financing. Details: Albany, NY: New York State Senate Majority Task Force on Immigration, 2005. 108p. Source: Internet Resource: Accessed April 29, 2011 at: http://nysl.nysed.gov/uhtbin/cgisirsi/xK6obNlwCS/NYSL/62700081/9 Year: 2005 Country: United States URL: http://nysl.nysed.gov/uhtbin/cgisirsi/xK6obNlwCS/NYSL/62700081/9 Shelf Number: 121574 Keywords: Counterfeit GoodsHuman TraffickingIllegal AliensIllegal TradeImmigrationTerrorismTerrorist Financing |
Author: Qian, Yi Title: Counterfeiters: Foes or Friends? Summary: This paper combines a natural policy experiment and randomized lab experiments to estimate the differential impacts of counterfeiting on the sales and purchase intent of branded products of various quality levels. I collect new product-line level panel data from Chinese shoe companies from 1993-2004. Exploiting the discontinuity of government enforcement efforts for the footwear sector in 1995 and the differences in authentic companies' relationships with the government, I identify heterogeneous effects of counterfeit entry on sales of authentic products of three quality tiers. In particular, counterfeits have both advertising effects for the brand and substitution effects for authentic products. The advertising effect dominates substitution effect for high-end authentic product sales, and the substitution effect outweighs advertising effect for low-end product sales. The positive effect of counterfeits is most pronounced for the high-fashion products (such as women's high-leg boots) and for the high-end shoes of the brands that were not yet well-known at the time of the entry by counterfeiters. I provide a theoretical framework to generalize such impacts due to counterfeits. Analogous heterogeneous effects of counterfeiting on consumer purchase intent for branded products of three quality tiers are also discovered in lab experiments. Responses in the lab allude to the fact that counterfeits could increase brand awareness as well as steal business. Details: Cambridge, MA: National Bureau of Economic Research, 2011. 66p. Source: Internet Resource: NBER Working Paper Series; Working Paper 16785: Accessed June 28, 2011 at: http://www.nber.org/papers/w16785.pdf Year: 2011 Country: China URL: http://www.nber.org/papers/w16785.pdf Shelf Number: 121880 Keywords: Consumer FraudCounterfeit GoodsProduct Counterfeiting (China) |
Author: Ledbury Research Title: Counterfeiting Luxury: Exposing the Myths. 2nd ed. Summary: Building on the findings of the 2006 Edition of Counterfeiting Luxury: Exposing the Myths Report, our 2007 edition probes further into the impact that counterfeit and look-alike products has on luxury brands in the UK. Based on the results of an extensive survey of over 2,000 consumers and a number of focus groups, this report reviews what changes have taken place over the last 12 months in terms of purchasing drivers and attitudes of consumers of counterfeit and look-alike goods and provides guidance to brand owners as to how to change consumer behaviour. Details: London: Davenport Lyons, 2007. 30p. Source: Internet Resource: Accessed August 23, 2011 at: http://www.a-cg.org/guest/pdf/Counterfeiting_Luxury_2007_Report.pdf Year: 2007 Country: International URL: http://www.a-cg.org/guest/pdf/Counterfeiting_Luxury_2007_Report.pdf Shelf Number: 122472 Keywords: Consumer FraudCounterfeit GoodsCounterfeitingCrime Prevention |
Author: Savona, Ernesto U. Title: Understudied Organized Crime Offending: A Discussion of the Canadian Situation in the International Context Summary: This report provides an analysis of selected possible understudied organized crime activities in the Canadian context, contributing to the knowledge on both of the nature and the scope of organized crime. The analysis involved an extensive review of the existing state of organized crime literature in the international context. The analysis was based on available literature, official reports and informed speculations. Details: Ottawa: Public Safety Canada, 2011. 38p. Source: Internet Resource: Accessed January 12, 2012 at: http://transcrime.cs.unitn.it/tc/fso/pubblicazioni/AP/Understudied_Organized_Crime_Offending_A_Discussion_of_the_Canadian_Situation_in_the_International_Context-English.pdf Year: 2011 Country: International URL: http://transcrime.cs.unitn.it/tc/fso/pubblicazioni/AP/Understudied_Organized_Crime_Offending_A_Discussion_of_the_Canadian_Situation_in_the_International_Context-English.pdf Shelf Number: 123556 Keywords: Counterfeit GoodsCounterfeitingGamblingHazardous WastesOffenses Against the EnvironmentOrganized CrimeWildlife Crime |
Author: U.S. Department of Homeland Security Title: Intellectual Property Rights: Fiscal Year 2011 Seizure Statistics Summary: Theft of intellectual property is a serious crime, and in Fiscal Year (FY) 2011, Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE) remained vigilant in their commitment to protect America by expanding their efforts to seize infringing goods. Counterfeit and pirated goods pose a serious threat to America’s economic vitality, the health and safety of American consumers, and our critical infrastructure and national security. Through coordinated efforts to interdict infringing merchandise, including joint operations, CBP and ICE enhanced intellectual property enforcement while facilitating the secure flow of legitimate trade and travel. • The number of Intellectual Property Rights (IPR) seizures increased by 24% to 24,792 in FY 2011 from 19,959 in FY 2010. • The domestic value of IPR seizures decreased by 5% from $188.1 million to $178.9 million due to the following: • The number of high-volume but low-value seizures • The number of high-volume but low-value seizures, including express courier and consolidated shipments, increased significantly. • The average value of an IPR seizure dropped to $7,193 in FY 2011, the lowest average value for IPR seizures in the last 10 years. • The estimated Manufacturer’s Suggested Retail Price (MSRP) for all FY 2011 IPR seizures is $1.1 billion, a slight decline from FY 2010. • The value of consumer safety and critical technology seizures soared to more than $60 million due to an increase in pharmaceutical and perfume seizures. • The number of consumer safety and critical technology seizures increased by 44%, and the value of these seizures rose by 41% compared to FY 2010 totals. Details: Washington, DC: U.S. Department of Homeland Security, 2011. 34p. Source: Internet Resource: Accessed January 17, 2012 at: http://www.ice.gov/doclib/iprcenter/pdf/ipr-fy-2011-seizure-report.pdf Year: 2011 Country: International URL: http://www.ice.gov/doclib/iprcenter/pdf/ipr-fy-2011-seizure-report.pdf Shelf Number: 123639 Keywords: Border SecurityCounterfeit GoodsCustomsProperty TheftTheft of Intellectual Property |
Author: Council of Europe. Parliamentary Assembly. Committee on Economic Affairs and Development Title: The Underground Economy: A Threat to Democracy, Development and the Rule of Law Summary: The underground economy represents a large and growing share of the overall economic activity in Europe and beyond. It accounts for from about 10% to over 60% of gross domestic product in different European countries. The “new democracies” of central and eastern Europe – where the rule of law is more fragile and where vested interest groups are firmly rooted – are particularly affected. The evolving structure of the world economy, the geopolitical changes following the fall of the Berlin Wall and the global economic crisis have all fuelled the growth of the informal economy. The report stresses that the underground economy and its extreme form – economic crime – significantly erode state authority and the capacity for good governance which are essential for fostering democracy, development and the rule of law. These phenomena also deprive state budgets of much tax revenue, distort competition, flout citizens' socio-economic rights, slow down economic progress, abuse public welfare systems and propagate lawlessness. The reports considers that the Council of Europe should pay more attention to addressing the problem of undeclared work, study more closely the activities of offshore centres as financial intermediaries and review the situation of organised crime in its member states. It proposes a series of directions for action, ranging from evaluation measures, regulatory adjustments, electronic surveillance of money flows, use of economic intelligence to information exchange, whistle-blowing and witness protection. Details: Strasbourg Cedex: Council of Europe, 2011. 14p. Source: Internet Resource: Doc. 12700: Accessed January 23, 2012 at: http://assembly.coe.int/Documents/WorkingDocs/Doc11/EDOC12700.pdf Year: 2011 Country: Europe URL: http://assembly.coe.int/Documents/WorkingDocs/Doc11/EDOC12700.pdf Shelf Number: 123735 Keywords: Counterfeit GoodsEconomic CrimesTax EvasionUnderground Economy (Europe)Whistleblowing |
Author: Pacula, Rosalie Liccardo Title: An Alternative Framework for Empirically Measuring the Size of Counterfeit Markets Summary: NBER Program(s): PE This paper develops a new method for estimating trends in the size of counterfeit markets. The method draws on principles of microeconomic theory and uses aggregated product-level data to estimate counterfeiting activities in various geographic markets. Using confidential firm unit forecasts and actual sales information, a two stage approach is employed that first accounts for unexpected but observable factors that could lead to forecasting error and then, in the second stage, considers the influence of market susceptibility to IPR infringement. Data are analysed for 45 related products sold by a single firm operating in 16 countries during the period 2006-2011. Our models predict larger amounts of counterfeiting in countries with higher corruption norms, lower government control and effectiveness. Predictions of the level of counterfeiting obtained from the second stage are then compared to estimates of counterfeiting derived internally by the firm using shadow-shopping methods. While our two stage model generally under-predicts the level of counterfeiting in each year, it generates trends in counterfeiting that are broadly consistent with those obtained using more costly and intensive methods. Details: Cambridge, MA: National Bureau of Economic Research, 2012. 36p. Source: Internet Resource: NBER Working Paper No. 18171: Accessed June 26, 2012 at: http://papers.nber.org/papers/w18171?utm_campaign=ntw&utm_medium=email&utm_source=ntw Year: 2012 Country: International URL: http://papers.nber.org/papers/w18171?utm_campaign=ntw&utm_medium=email&utm_source=ntw Shelf Number: 125395 Keywords: Counterfeit GoodsCounterfeiting |
Author: De Cat, Dennis Title: Counterfeiting and Consumer Behaviour Summary: Many reports state that the overall magnitude of counterfeiting is obviously on the rise. For instance, the Taxation and Customs Union from the European Commission (EC) reports that the number of counterfeit articles detained in EU member states only, has risen from 25 million in 1999 to 178 million in 2008 (European Commission, 2008). The most frequently cited number to ‘value’ counterfeiting is the one the OECD proposes in their analysis of international trade data. They suggest that, worldwide, up to USD 200 billion of internationally traded products could have been counterfeit in 2005. However, one must remain critical. As the OECD report suggests itself, “available information on counterfeiting and piracy falls far short of what is needed for robust analysis and for policymaking”. Chaudry and Zimmerman (2008) even state it is virtually impossible to determine the real size of the worldwide counterfeit product market as it concerns an illegal activity. Green and Smith (2002) blame the fact that there exists no exact standard or agreement about the factors that should be taken into account when calculating the monetary value of counterfeiting for this non-transparency. Nevertheless, they also suggest that product counterfeiting is significant and growing. This statement is confirmed by previous research on the reasons of counterfeit growth by Vagg and Harris (2000). Not only the magnitude of counterfeiting is increasing. The same goes for the scope of counterfeiting. Chaudry and Zimmerman (2008) state that the types of products being counterfeited are broadening. Not only CD’s, DVD’s, computer equipment, clothes and shoes are being counterfeited. Other product categories frequently being imitated are toys, pharmaceuticals, automobile component parts, electrical equipment, food and beverages, tobacco and personal care products. This is confirmed by the OECD (2008) which even finds a shift from luxury goods to common consumer goods. These results are also congruent with the findings of the Taxation and Customs Union from the EC. Gentry et al. (2006) even put it more extreme: “If one can attach some value to a consumer brand, one is likely to find counterfeit imitations of it, somewhere.” This view is supported by Lewis (2009) who ads the aspect of the illegal profit margin that has to be high enough before a product is attractive for being counterfeited. Despite the fact that other product categories are on the rise, the OECD (2008) and the EC (2008) report that fashion items (i.e. clothing, jewellery, accessories and footwear) still account for the largest part of counterfeit trade, e.g. the textile sector and jewellery together make up 66,2% of all interventions by European Customs. Gessler (2009) states that counterfeiting is the major obstacle the luxury fashion industry is facing today. These astonishing numbers explain why the author opted for investigating non-deceptive counterfeiting (i.e. people are fully aware of the fact they are buying a counterfeit at the time of purchase) and consumer behaviour in the luxury fashion industry. The consequences of counterfeiting are enormous at various levels. Gessler (2009) divides ‘the true costs of counterfeiting’, i.e. the consequences of the phenomenon, in six categories: the cost to brand owners, government burdens, the effects counterfeiting has on consumers, child and forced labour issues in the production of these counterfeits, organised crime and terrorist funding activities of counterfeiters and the moral cost of counterfeiting. Later on in this paper the author will make a distinction on the basis of personal and societal harm counterfeit trade causes. One thing is clear: counterfeiting may no longer be seen as a victimless crime as it has a damaging effect on businesses, national economies, consumers and on society as a whole (UNICRI, 2009; Santos and Ribeiro, 2006). In the anti-counterfeiting literature many authors propose different strategies to counter product and brand counterfeiting. These anti-counterfeiting tactics range from the use of RFID tags (Tuyls and Batina, 2006) to the development of new legal frameworks (Bush et al., 2001). However, Berman (2008) states also companies can contribute to the reduction of the counterfeiting problem through the development of consumer education programs that publicize the personal and societal dangers counterfeiting causes. A part of this education process is that ‘marketers need to develop advertising campaigns that focus on the significant safety, performance and financial risks associated with the purchase of counterfeit merchandise’. To the author’s best knowledge, no such research has been conducted before that classifies and investigates the potential consequences of counterfeiting in such an extensive way. Furthermore, by integrating the construct of ‘societal harm’, this research responds to the critical remark Gessler (2009) made: ‘Unfortunately, the societal impact of counterfeiting remains largely under researched and often neglected’. In this research we will assess the impact of consumers’ awareness of societal consequences on their attitudes toward purchasing CLFI. Altogether, the main interest of this research goes out to examining consumers’ attitude toward purchasing counterfeit luxury fashion items (CLFI) and their intention to purchase CLFI. More specifically, the author will be investigating if there exists a difference in attitude toward purchasing CLFI if one is being informed about the personal harm counterfeits cause rather than being informed about the societal consequences bound to counterfeit trade. In addition, several factors proven important in previous research (e.g. subjective norms, perceived behavioural control, etc.) will be reinvestigated in a Belgian context. The relationship between the price level, the quality level and perceived quality will be examined as well. Finally, the linkage between attitudes and intentions is assessed in a counterfeit-related context. Details: Ghent, Belgium: Ghent University, 2010. 109p. Source: Internet Resource: Thesis: Accessed March 7, 2013 at: http://lib.ugent.be/fulltxt/RUG01/001/459/733/RUG01-001459733_2011_0001_AC.pdf Year: 2010 Country: International URL: http://lib.ugent.be/fulltxt/RUG01/001/459/733/RUG01-001459733_2011_0001_AC.pdf Shelf Number: 127865 Keywords: Consumer BehaviorConsumer FraudCounterfeit GoodsCounterfeiting |
Author: United Nations Office on Drugs and Crime Title: Transnational Organized Crime in East Asia and the Pacific A Threat Assessment Summary: East Asia and the Pacific have experienced rapid economic and social changes during the past few decades and faced the considerable regulation challenges these changes create for public authorities. This report takes a look at the manner in which criminal enterprises have developed alongside legitimate commerce in recent years. Drawing on official statistics, academic studies, and interviews with law enforcement officials, it attempts to outline something about the mechanics of illicit trade: the how, where, when, who, and why of selected contraband markets affecting the region. It also endeavours to give the best reading of the available data on the size of these markets. Though the list of contraband markets discussed is not comprehensive and it is impossible to quantify the value of these markets with any precision, these estimates are offered to prompt public debate on areas of great public policy significance. The mechanics of trafficking are discussed for a nonexhaustive list of 12 illicit flows, which themselves are organized under four headings: 1. Human trafficking and smuggling of migrants 2. Illicit drugs (heroin and methamphetamine) 3. Resources (wildlife, wood products) and pollution crime (e-waste, ozone-depleting substances) 4. Products (counterfeit goods, fraudulent medicines). Details: Vienna: UNODC, 2013. 192p. Source: Internet Resource: Accessed May 1, 2013 at: http://www.unodc.org/documents/data-and-analysis/Studies/TOCTA_EAP_web.pdf Year: 2013 Country: Asia URL: http://www.unodc.org/documents/data-and-analysis/Studies/TOCTA_EAP_web.pdf Shelf Number: 128580 Keywords: Counterfeit GoodsDrug TraffickingFraudulent MedicinesHuman SmugglingHuman TraffickingOffenses Against the EnvironmentOrganized Crime (East Asia, Pacific)Wildlife Crime |
Author: United Nations Office on Drugs and Crime (UNODC) Title: The Illicit Trafficking of Counterfeit Goods and Transnational Organized Crime Summary: As a global, multibillion dollar crime, organized criminal groups have not hesitated to cash in on the trade in counterfeit goods. In many parts of the world, international, regional and national law enforcement authorities have uncovered intricate links between this crime and other serious offences including illicit drugs, money laundering and corruption. Some estimates put the counterfeit business at well in excess of $250 billion a year and hundreds of billions more, if pirated digital products and domestic counterfeit sales are included. The involvement of organized criminal groups in the production and distribution of counterfeit goods has been documented by both national and international authorities. Groups such as the Mafia and Camorra in Europe and the Americas, and the Triads and Yakuza in Asia have diversified into the illicit trafficking of counterfeit goods, while at the same time being involved in crimes varying from drug and human trafficking, to extortion and money laundering. UNODC's own research reports have recognized the strategic and operational criminal link between counterfeiting and activities such as drug trafficking. There is an additional societal impact caused by counterfeiting. The trade in counterfeit products can result in increased corruption and law enforcement costs, have a serious impact on public health and safety, lead to social and environmental concerns, and result in the infringement of other criminal and administrative laws such as tax and customs evasion as well as fraud. Details: Vienna: UNODC, 2014. 10p. Source: Internet Resource: Accessed June 4, 2014 at: https://www.unodc.org/documents/counterfeit/FocusSheet/Counterfeit_focussheet_EN_HIRES.pdf Year: 2014 Country: Europe URL: https://www.unodc.org/documents/counterfeit/FocusSheet/Counterfeit_focussheet_EN_HIRES.pdf Shelf Number: 132414 Keywords: Costs of CrimeCounterfeit GoodsTrafficking in Goods |
Author: EPS Consulting Title: Tackling the Black Market and Retail Crime Summary: Retail Ireland, in August 2012, published a major new report 'Tackling the Black Market and Retail Crime', which says the Exchequer is losing L861 million annually because of illegal black market activity and retail theft. The group said the recession had led to an increase in retail crime, including shoplifting, fuel smuggling and the sale of smuggled cigarettes, and called for a zero tolerance approach from the Gardai and courts. Key facts in the report include: - At least 12% of all diesel sold in Ireland is illegal. Since 2010, 19 oil laundries have been detected and closed, and 690,000 litres of oil seized - Figures on the size of the illegal tobacco market range from L250m upwards. - Attempts to import counterfeit goods increased by a quarter to 1277 from 2009 to 2010; 66853 counterfeit articles were intercepted in 2010 - Industry estimates that 770,000 individuals in Ireland have down-loaded music/films illegally, costing the industry and Exchequer millions - Ireland ranks 11th out of 22 countries in Europe for shop-lifting, with employee theft accounting for one-third, the highest rate in Europe Details: Dublin: Retail Ireland, 2012. 25p. Source: Internet Resource: Accessed August 14, 2014 at: http://www.ibec.ie/IBEC/Press/PressPublicationsdoclib3.nsf/vPages/Newsroom~black-market-costing-exchequer-E861-million-annually-20-08-2012/$file/Retail+Ireland+-+Tackling+the+Black+Market+and+retail+Crime.pdf Year: 2012 Country: Ireland URL: http://www.ibec.ie/IBEC/Press/PressPublicationsdoclib3.nsf/vPages/Newsroom~black-market-costing-exchequer-E861-million-annually-20-08-2012/$file/Retail+Ireland+-+Tackling+the+Black+Market+and+retail+Crime.pdf Shelf Number: 133058 Keywords: Counterfeit GoodsCrimes Against BusinessesEmployee TheftIllegal GoodsRetail CrimeShoplifting |
Author: Przyswa, Eric Title: Counterfeit Medicines and Criminal Organisations Summary: Counterfeit Medicines are a major threat that is spreading dangerously across the globe and the International Institute of Research Against Counterfeit Medicines (IRACM) has decided to present a study report to decipher the relationship between organized crime and medicine counterfeiting. Today, every country, every person can come into contact with counterfeit medicines. The risk of taking counterfeit medicines "involuntarily" is increased exponentially for any potential patient of the "global village". This risk can become a real danger to individual lives, but also a global threat to public health. The IRACM wishes to alert the public by publishing this report to raise awareness among governments and citizens and help consumer-patients to make careful choices, whether on the internet or at markets in developing countries where drugs are sold on stalls at lower prices. The purpose of such a report is a hot topic as medicine counterfeiting issues have escalated to worrying heights with the growth of international trade and the Internet. This problem now generates major public health issues on an international scale. As for criminal organizations, they are often perceived simplistically in public debate and this research on this new subject seeks to attempt to characterize the structures that exist. The study focuses not only on Western countries but also on Russian and especially Chinese aspects, often regarded as strategic. This novel research report includes the best international academic sources and seeks to identify the logic behind the most significant criminal strategies rather than provide a hypothetical exhaustive list of organizations involved in such illegal trafficking. Many criminal organizations Based on our research, it is clear that criminal organizations are involved in medicine counterfeiting and three types of organization can be identified: Small-sized organizations (two to five people) often created by opportunistic individuals motivated by short-term gains. These organizations offer specific products at attractive prices. Medium-sized transnational organizations whose criminal profile varies: these may be structures stemming from organized crime (Wuppertal case1), opportunistic businessmen using sophisticated techniques to manage their organization (Arnaud B. case2) or people more directly connected to the pharmaceutical industry (Gillespie case). Large-scale and transnational organizations as seen in two significant cases: - The RxNorth case involving a Canadian distributor which, in parallel with its business, organized a complex system to import counterfeit medicines made in China into the United States, transiting them through Hong Kong, the Middle East, the UK and the Bahamas. - Another, even more complex example: a so-called "Jordanian-Syrian" network created in 2003 during the U.S. invasion of Iraq and which, through a succession of opportunities, evolved into multiple subnetworks in the region (Jordan, Palestinian territories, Egypt, Syria), then moved to the West with a counterfeit cancer drug whose network transited through several countries (Egypt, Turkey, Switzerland, Great Britain) before finally reaching the U.S. market. This case, which has received little media coverage, is thought to be the largest criminal network of medicine counterfeiting still active. Chinese organized crime has a very strategic role and it is important to distinguish Chinese criminal cases involving the Western market (the case of Kevin Xu, a businessman who specialized in exports), from cases mostly involving the local market where the criminals often have connections to the healthcare sector. Lastly, there are foreign structures that create local companies that serve to build transnational networks based in this leading region for the manufacture of counterfeit medicines. On the Internet there are two types of criminal structures. The first category includes opportunistic online networks set up on an ad hoc basis by being grafted onto "real" trade with the end consumer in the distribution phase. The second category of organizations is dedicated exclusively to online distribution with globalized affiliation techniques and aggressive advertising on search engines or through spam. The most significant case of a cybercrime organization in recent years involves the Russian Glavmed and SpamIt affiliation programs. The affiliates of these two networks benefited from "prefabricated" online pharmacies and a dozen SpamIt affiliates earned over $1 million in commission on their website. Vast criminal organizations Generally speaking, certain analytical limitations in deciphering these organizations have been identified and differentiate our analyses from most sources on the subject. Despite the proven involvement of Italian criminal organizations in the counterfeiting of luxury goods and the healthcare sector, their presence in the organization of counterfeit medicine trafficking is difficult to prove. However, the report raises the theoretical possibility of the Mafia's involvement in certain strategic locations such as harbours. As for the Chinese Triads, analysing their involvement has proven to be difficult, as research in mainland China is complex. In short, we must be cautious regarding the presence of traditional criminal organizations in our field of study. The involvement of terrorist organizations is also difficult to prove, despite many reports seeking to document money laundering linked to counterfeit medicine trafficking. But the explanations given are often related to broader geopolitical issues, raising doubts over the objectivity of such analyses (Hezbollah for example). However, the involvement of the IRA in the organization of a vast counterfeit veterinary drug trafficking network in the early 90s between Northern Ireland and Florida has been clearly proven. In sum, the report identifies these criminal organizations and their activities and characterizes them in several ways: - Fragmented crime through better access to illegal activities. The "massification" of printing, production and distribution techniques has clearly facilitated such developments. - Criminal organizations often operate based on a "structural holes" approach, seeking to maximize the systemic flaws in the supply chain or on a broader scale (free trade zones, tax havens, servers hosted in "protected" areas, etc.). - On a large scale, these organizations are characterized by a hybrid network structure, where licit operators can cooperate with illicit ones or be directly involved in such criminal trafficking. - In terms of timelines, it is important to distinguish between organizations likely to generate a major risk over a relatively short period of time, and that need to be dismantled as quickly as possible, and large hybrid organizations whose total elimination can take years. - To our knowledge, there are no sustainable large-scale transnational criminal organizations that combine trafficking on the Internet and trafficking in the "real" world. - Paradoxically, networks on the Internet often seem to have a more structured and consistent organization than organizations involved in medicine counterfeiting in the "real" world, which are more difficult to observe. - The counterfeit medicines distributed are no longer limited to "convenience" drugs but also include major diabetes and cancer treatments. Details: Paris: Institut de Recherche Anti-Contrefacon de Medicaments, 2013. 129p. Source: Internet Resource: Accessed April 9, 2015 at: http://www.iracm.com/wp-content/uploads/2014/02/Contrefacon-de-Medicaments-et-Organisations-Criminelles-EN.pdf Year: 2013 Country: International URL: http://www.iracm.com/wp-content/uploads/2014/02/Contrefacon-de-Medicaments-et-Organisations-Criminelles-EN.pdf Shelf Number: 135203 Keywords: Counterfeit GoodsCounterfeit MedicinesCybercrimeIllegal GoodsOrganized CrimePharmaceuticals |
Author: Europol Title: 2015 Situation Report on Counterfeiting in the European Union Summary: Although the majority of counterfeit products in circulation in Europe are manufactured outside the EU - and evade detection at the EU's external borders - research for the report highlights how domestic EU production is on the rise with cases originating in Belgium, the Czech Republic, Italy, Poland, Portugal, Spain and the UK. This large-scale domestic production of counterfeit goods in the EU is becoming an increasingly profitable business for organised crime groups and organisations. Counterfeiters, who operate with significantly lower risks, have been found to have links with other forms of crime such as trafficking in human beings - notably for labour exploitation - as well as with other criminal groups, originating from different countries in and outside Europe. The most significant enabler for distributing these counterfeit goods is the Internet. Consumers are drawn to e-commerce sites due to their prices, 24/7 availability and direct delivery. Some websites are of such high quality that they rival those of the rights holder. Counterfeiters are able to function across multiple jurisdictions, evading capture, and are also able to take down and set up new websites overnight without losing their customer base. The report explores how Chinese organised criminal groups involved in distributing counterfeit goods are highly mobile, specialised teams. Those operating in Italy are known to have close relationships with the Camorra and collaborate to import counterfeit goods. Chinese diaspora communities across Europe are extensive and there is a concentration of Chinese counterfeit businesses in several Italian provinces that are all associated with the textile and fashion industries. Parts of Madrid and its suburbs have also been infiltrated by Chinese organised crime groups. These criminal groups operate across Europe and use legitimate businesses to facilitate the movement of counterfeit products. They have also established and developed collusive relationships with a network of money transfer agencies, enabling them to launder and send large amounts of money to China. After China, India is the next priority concern due to its impact on the EU through counterfeit pharmaceutical products; Turkey for foodstuffs; Indonesia for weak legislation and corruption issues; and the Philippines for low rates of enforcement. Details: The Hague: Europol, 2015. 70p. Source: Internet Resource: Accessed May 20, 2015 at: https://www.europol.europa.eu/content/2015-situation-report-counterfeiting-european-union Year: 2015 Country: Europe URL: https://www.europol.europa.eu/content/2015-situation-report-counterfeiting-european-union Shelf Number: 135731 Keywords: Consumer ProtectionCounterfeit GoodsCounterfeitingOrganized Crime |
Author: Chaudhry, Peggy Title: The Impact of Plain Packaging on the Illicit Trade in Tobacco Products Summary: The illicit trade in consumer products is a dynamic problem with a global reach. Measuring the scale of this trade and the worldwide value of illicitly-traded products is inherently difficult given the illegal nature of this activity, but most accept that it has grown significantly over the last few decades. While the loss of tax revenue is the most measurable impact of illicit trade, other negative consequences center on: harm to consumers; damage suffered by intellectual property owners and legitimate supply chain members; and profits to organized criminal groups. Packaging is a critical deterrent to the counterfeiting of consumer products. Reflecting the challenges of measuring the scale of all global illicit trade, there are no reliable statistics for calculating precisely the size of the worldwide illicit tobacco problem. Some estimates suggest that around 10 to 11% of the global cigarette market is illicit, representing over 600 billion cigarettes a year. Cigarettes can be thought of as the 'ideal smuggled product' since the product is light, extremely valuable for its size and weight, and easy to transport and conceal in shipments of other products. There are various types of illicit tobacco products and the nature of this trade varies between markets. Some markets are mainly a source of illicit products, others are transit routes, and still others are destination markets for consumption. In this report, the serious illicit trade issues affecting the UK are used as a case study. Factors spurring the growth of illicit tobacco trade include: affordability of unlawful cigarettes compared to lawful ones; huge profit incentives for illicit traders; low criminal penalties disproportionate to these profit incentives; and widespread consumer complicity. This trade is assisted by the geographic characteristics of some markets (e.g., destination countries with borders more conducive to receiving illicit product). Currently packaging that is complex or innovative acts as a deterrent to counterfeiters of tobacco products since keeping up with the evolving packaging of genuine product is an expensive and time-consuming process. Packaging is also one of the few ways smokers and law enforcement agencies can use to assess whether a product is genuine or counterfeit. Illicit traders are often nimble, adapting to changing consumer demands and the regulatory environment. They enjoy the business benefits of product diversification without the regulatory constraints faced by manufacturers of legitimate product. The organized criminal gangs often behind the illicit tobacco trade also have the ability to exploit global networks of contacts and to work closely with other criminal enterprises. Tackling the illicit trade in tobacco products requires a multi-level response including national and international collaboration between regulators, enforcement agencies, and those who operate within the legitimate product supply chain. A careful review of the relationship between plain packaging for tobacco products and illicit tobacco trade is required given the pre-existing, serious societal impacts of this illegitimate trade. In our expert opinion, plain packaging for tobacco products will worsen the illicit trade in tobacco products as it would open a number of new opportunities for illicit traders. Notably, plain packaging will allow the illicit traders to provide counterfeit cigarettes using the mandated plain packaging specified by national legislation. The advent of plain packaging may also encourage new entrants to the lucrative business of counterfeiting cigarette packs since the costs and barriers of getting into this business will be reduced; reductions in start-up costs may encourage those without the resources to manufacture an authentic-looking copy of currently available sophisticated pack designs to begin counterfeiting plain packs. The recent Australian plain packaging legislation shows why this is the case: - Plain packs will be easier to counterfeit. In Australia, each cigarette pack can be covered only in a shade of "drab brown" specified by the regulator. In addition, the law forces the use of the most commonly counterfeited pack shape - a flip top box. - Illicit traders are effectively given a blueprint of 'how to make the pack.' Pack specifications will be made available online in contrast to the current practice where design specifications and colors are deliberately kept confidential in order to deter counterfeiters. - Static packaging reduces future cost burdens for illicit traders. A uniform pack design, like the one mandated in Australia, removes the need to keep up with the manufacturers' evolving pack innovations and developments, therefore, reducing the cost burden on counterfeiters since there will be no additional investment necessary until there is a further change in the law. - Plain packaging creates economies of scale in production. Once one plain pack brand is faked, the counterfeiter can reproduce packaging of each brand on the market with minimum effort since the only difference on each pack is the 'brand and variant names' that appear only in a specified font/size. Ironically, while plain packaging makes life easier and cheaper for counterfeiters, it may make life more difficult for consumers, retailers, and law enforcement agencies to differentiate between genuine and fake packs. Those who conduct forensic investigative analysis of packs may have to resort to more resource-intensive and time-consuming tools of verification in a plain packaging environment. Complex health warnings, tax stamps, or holograms will not be an effective deterrent to counterfeiting these much simpler packs. Such 'anti-counterfeiting' markings are already easily faked and counterfeiters generally only replicate enough to 'fool the consumer.' Track and trace requirements are also not the answer as these apply only to manufacturers of genuine product (and, even then, not all of them). In addition, these requirements cannot provide the information smokers need to tell if they have bought a fake pack. Plain packaging would also provide illicit traders with new opportunities to: - Offer counterfeit branded packaging that predates the introduction of the plain packaging measure. While brand owners will be prevented from using their iconic branding, criminals will not. Smokers who want to use familiar branded packs may continue to - wrongly - assume that the branded illicit product being offered is genuine but produced in another market when it is, in fact, fake. - Maintain or increase sales other types of branded packs: 'illicit whites' and contraband genuine product. In our expert opinion, plain packaging is highly likely to aggravate the existing negative impacts of the already serious and socially damaging trade in illicit tobacco. Since illicit products are often more accessible to those underage and those from low-income groups, plain pack laws risk undermining a key objective of plain packaging: to reduce smoking by these groups. We foresee that creating a plain packaging environment will also intensify the following serious societal impacts of the illegitimate trade: - Negative impacts on governments and taxpayers. The loss of tax revenues as more smokers shift from licit to illicit product has a multiplier effect since governments have less funding for healthcare, education, and other public services. 'Cross border shopping' is also likely to increase with the search for familiar branded packs providing an added incentive to the price benefits of buying packs abroad, further reducing government tax revenue in the smoker's 'home market.' - Detrimental influences on communities and society. An array of problems arises from illicit trade that range from cultivating consumers of illicit product who disrespect the law to fostering organized crime groups. These groups often penetrate low-income communities with their cheap products and enlist vulnerable people to perform perceived 'soft crimes,' such as 'ant smuggling.' In the long run, this illicit trade may 'normalize' criminal behavior and lead the individuals involved towards other acts of criminality. - Costs to legitimate manufacturers and retailers. Increased sales of fake products shift revenues from legitimate manufacturers and jobs from the highly-skilled legitimate workforce employed at all levels of the supply chain. Legitimate retailers already lose business to those involved in illicit tobacco trade. - Additional harmful effects to smokers. Regulators and public health officials have repeatedly expressed the concern that smokers are exposed to greater health risks by consuming illicit product. - Profits made by serious criminal organizations. The profits stemming from illicit tobacco trade are often used to finance other serious criminal or terrorist activity including prostitution, human trafficking, and trading of lethal weapons. In summary, we recommend a careful appraisal be given to these unintended negative consequences before plain packaging regulations are developed. Policy makers should be aware that plain packaging will, in our expert opinion, make the illicit trade in tobacco worse and these policy makers should therefore be exceptionally careful to ensure that such regulations do not inadvertently undermine anti-illicit trade programs and initiatives. Details: Villanova, PA: The Authors, 2012. 187p. Source: Internet Resource: Accessed September 30, 2015 at: http://www.peggychaudhry.com/publications/Impact_on_illicit_trade.pdf Year: 2012 Country: International URL: http://www.peggychaudhry.com/publications/Impact_on_illicit_trade.pdf Shelf Number: 136921 Keywords: CigarettesCounterfeit GoodsDesign Against CrimeIllegal TobaccoIllicit TradeOrganized Crime |
Author: Frontier Economics Title: Estimating the Global Economic and Social Impacts of Counterfeiting and Piracy Summary: Government efforts to stabilize the economy and stimulate economic growth, trade and employment must include the critical and pervasive role that intellectual property (IP) protection plays in driving, innovation, development and jobs. The massive infiltration of counterfeit and pirated products, or IP theft, creates an enormous drain on the global economy - crowding out billions in legitimate economic activity and facilitating an "underground economy" that deprives governments of revenues for vital public services, forces higher burdens on tax payers, dislocates hundreds of thousands of legitimate jobs and exposes consumers to dangerous and ineffective products. Reliable information on the scope, scale, costs and impacts of counterfeiting and piracy is critical for helping policymakers to better understand that the trade in fake goods is damaging their economies, threatening the health and safety of their citizens and stifling innovation and creativity. Policymakers with better information on of how counterfeiting and piracy undermine IP, innovation, economic growth and employment are better able to make the fight against IP theft a higher public policy priority and take the actions needed to prevent the damage inflicted by counterfeiting and piracy. In this regard, government efforts to strengthen IP enforcement regimes can more appropriately be considered as investments that pay tangible dividends to economic development and society. Because counterfeiters and pirates operate outside the law, estimating the extent of counterfeiting and piracy and the harm these activities cause is extremely challenging. Illegal businesses do not report information on their activities to any government agency so measuring their size must be done using indirect methods. For this reason, Business Action to Stop Counterfeiting and Piracy (BASCAP), an initiative of the International Chamber of Commerce, is commissioning experts (including Frontier for this report) to examine the issue and to develop methodologies for estimating the economic and social impacts of counterfeiting and piracy. No one report or approach will yield a complete picture or provide all the answers, but BASCAP is committed to learning from as many sources of expertise as possible. Details: Paris: BASCAP (Business Action to Stop Counterfeiting and Piracy), 2011. 61p. Source: Internet Resource: Accessed November 16, 2015 at: www.iccwbo.org Year: 2011 Country: International URL: www.iccwbo.org Shelf Number: 137282 Keywords: Counterfeit GoodsCounterfeitingEconomic CrimesFake GoodsFinancial CrimesPirated Products |
Author: International Chamber of Commerce (ICC) Title: Roles and Responsibilities of Intermediaries: Fighting Counterfeiting and Piracy in the Supply Chain Summary: Millions of intermediaries are operating throughout the global supply chain and the vast majority of these players are conscientious, trustworthy and reliable partners. ICC's own membership includes millions of companies: many are brand and copyright owners; many are intermediaries; and others have no direct interest or link to the topics covered in this paper. So while this paper does not and cannot reflect the views of all ICC members, nor is it a consensus of the global business community, it has undertaken to ensure accuracy, balance and consistency with ICC's long-standing opposition to counterfeiting and piracy, intellectual property rights infringement, unfair trade, illegal commerce and corruption. For the most part, this body of work substantiates actions intermediaries are already taking independently or in collaboration with rights holders and government authorities to deal with supply chain vulnerabilities. Where these current efforts have been inadequate in protecting against IP infringements, suggestions for better or best practices are put forward. The result is a product that challenges the status quo and offers a roadmap for discussion, collaboration and resolution. We offer the findings and suggested best practices as a springboard for an ongoing dialog among trademark and copyright owners, intermediaries and governments to find solutions to the infiltration of counterfeiting and piracy into the legitimate supply chain. Our hope is that the suggested best practices will help responsible intermediaries more effectively deal with vulnerabilities in their operations and encourage intermediaries who knowingly facilitate IP infringement to stop. Details: Paris: ICC and BASCAP, 2015. 108p. Source: Internet Resource: Accessed November 16, 2015 at: http://www.gacg.org/Content/Upload/Documents/2015%20BASCAP%20Intermediares_HR%20(1)%20(1).pdf Year: 2015 Country: International URL: http://www.gacg.org/Content/Upload/Documents/2015%20BASCAP%20Intermediares_HR%20(1)%20(1).pdf Shelf Number: 137197 Keywords: Counterfeit GoodsCounterfeit ProductsCrimes Against BusinessesProduct CounterfeitingProduct PiracySupply Chains |
Author: INTERPOL. Office of Legal Affairs Title: Countering Illicit Trade in Tobacco Products: A Guide for Policy-Makers Summary: Illicit trade in tobacco products (ITTP) is a global occurrence, affecting all regions and countries. It holds an allure for criminals to engage in it as tobacco products are light, small, easy to transport and to conceal. Tobacco is one of the most smuggled commodities in the world, allowing offenders to amass huge profits. Further, penalties are often not sufficient to act as a deterrent. Illicit trade in tobacco products has negative and harmful consequences for countries at many levels. It affects consumers' health, reduces States' budgets, creates unfair competition for legitimate businesses, and feeds organized criminal groups who channel the profits obtained into other illegal activities. This handbook aims to offer the first comprehensive legal analysis of the international legal framework against the ITTP. It provides guidance to policy-makers and law enforcement authorities on the implementation of key international instruments in the field, with an emphasis on the new Protocol to Eliminate Illicit Trade in Tobacco Products. The ITTP holds many challenges for governments. One of the biggest is the involvement of organized criminal networks which employ increasingly sophisticated and varied methods to counterfeit and smuggle products. INTERPOL recognizes this as a growing issue threatening the security of States. A joint and coordinated effort is needed to find and implement lasting solutions to this multi-faceted problem. Details: Lyon, France: INTERPOL Office of Legal Affairs, 2014. 290p. Source: Internet Resource: Legal handbook Series: Accessed February 26, 2016 at: http://www.interpol.int/Crime-areas/Trafficking-in-illicit-goods-and-counterfeiting/Legal-assistance/Legal-publications Year: 2014 Country: International URL: http://www.interpol.int/Crime-areas/Trafficking-in-illicit-goods-and-counterfeiting/Legal-assistance/Legal-publications Shelf Number: 137982 Keywords: Counterfeit GoodsIllicit GoodsIllicit TradeOrganized CrimeSmuggled GoodsTobaccoTobacco Smuggling |
Author: Fink, Carsten Title: The Economic Effects of Counterfeiting and Piracy: A Review and Implications for Developing Countries Summary: Policy makers around the world recognize the potentially harmful consequences of trademark counterfeiting and copyright piracy. Indeed, many countries have recently initiated policy reforms to strengthen the enforcement of intellectual property rights (IPR). Further, minimum standards of enforcement have been incorporated in many international treaties, especially trade agreements. This emphasis on enforcement raises basic questions about the actual impacts of IP rights infringement, which differ across the types of IPR and economic sectors. The authors review the academic literature and other studies in the public domain to evaluate what has been learned about these socioeconomic effects, with an emphasis on developing countries where possible. They also identify important gaps in our understanding of the consequences of counterfeiting and piracy and develop recommendations on how governments might collect data and conduct studies to better inform IPR enforcement policy. Details: Washington, DC: World Bank, 2016. 46p. Source: Internet Resource: World Bank Policy Research Working Paper No. 7586 : Accessed March 4, 2016 at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2740120 Year: 2016 Country: International URL: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2740120 Shelf Number: 138046 Keywords: Counterfeit GoodsIntellectual PiracySocioeconomic Conditions and Crime |
Author: United Nations Interregional Crime and Justice Research Institute (UNICRI) Title: Counterfeit Medicines and Organised Crime Summary: Counterfeit medicines are among the counterfeit products with the greatest potential for harming the health of consumers. The production of pharmaceuticals is heavily regulated in order to ensure product compliance with the highest quality and safety standards. All drugs must undergo clinical trials before being marketed in order to test their efficiency, verify their quality and exclude the potential existence of side effects on patients. These institutional and technical measures are meant to work as a safety valve to guarantee the quality of medicines. Counterfeit products do not respect any of these regulations and requirements. Despite the existence of controls, counterfeit products exist in the market, creating consequences ranging from ineffective therapeutic results to severe health problems or death. Before considering the various elements of the problem, the term "counterfeit drug" The meaning associated with "counterfeit medicines" may also incorporate other cases that -- for various reasons -- are ascribable to the adulteration/replication of a product and/or tampering of the packaging: - products containing the same active ingredients and the same excipients of the original pharmaceutical agent and that are correctly packaged and labelled but which have been illegally imported into a country; - products containing the same ingredients of the genuine medicine and with genuine packaging but which contain incorrect amounts of ingredients; - products which -- despite being identical from an external point of view and have genuine packaging -- do not contain any active ingredient; - products externally similar to the originals and with genuine packaging but that contain harmful substances instead of the correct active ingredients; - products with counterfeit packaging and correct amounts of active ingredients; - products with counterfeit packaging but with different amounts of active ingredients; - products with counterfeit packaging that contain a different active ingredient or harmful substances; - products with counterfeit packaging that do not contain active ingredients. should be defined. According to the 1992 World Health Organization (WHO) definition, a counterfeit drug is a pharmaceutical product "which is deliberately and fraudulently mislabeled with respect to identity and/or source." The WHO further clarifies that this definition applies to both branded and unbranded medicines, the so-called generics, and it includes products "with the correct ingredients or with the wrong ingredients, without active ingredients, with insufficient active ingredients or with fake packaging." This definition stresses out the adulteration, inappropriateness, illegality and by extension, the danger of these products. Details: Turin: UNICRI, 2012. 119p. Source: Internet Resource: Accessed June 10, 2016 at: http://www.unicri.it/topics/counterfeiting/medicines/report/Ctf_medicines_and_oc_advance_unedited2013.pdf Year: 2012 Country: International URL: http://www.unicri.it/topics/counterfeiting/medicines/report/Ctf_medicines_and_oc_advance_unedited2013.pdf Shelf Number: 139367 Keywords: Consumer FraudCounterfeit GoodsCounterfeit MedicinesOrganized Crime |
Author: United Nations Office on Drugs and Crime (UNODC) Title: Transnational Organized Crime in the Pacific: A Threat Assessment Summary: This report presents major threats posed by transnational organized crime in the Pacific region, mainly focusing on the Pacific Island Countries and Territories (PICTs). Based on consultations with the Pacific Island Forum Secretariat (PIFS) and information obtained from desk reviews conducted by UNODC, this report focuses on four major types of transnational organized crime affecting the Pacific region: - Drug and precursor trafficking; - Trafficking in persons & smuggling of migrants; - Environmental crimes (fishery crime and other wildlife trafficking & illegal logging and timber trafficking); and - Small arms trafficking. In addition to the major four types of transnational crime, the report also includes some information on the trafficking of counterfeit goods, including fraudulent medicines, and cybercrime to shed light on emerging threats in the region. The four major illicit flows discussed in the report are different sorts of illicit activities, yet they all pose immense challenges to the region. There are strong indications that the PICTs are increasingly targeted by transnational organized crime groups due to their susceptibility to illicit flows driven by several factors. These include (a) the geographical location of the PICTs situated between major sources and destinations of illicit commodities; (b) extensive and porous jurisdictional boundaries; and (c) differences in governance and heterogeneity in general law enforcement capacity across numerous PICTs and the region in general. These complexities also underscore the inherent difficulties in detecting, monitoring, preventing and responding to transnational organized crimes in the region. In this context, transnational criminal activities continue to increase throughout the Pacific and have detrimental impacts on communities, sustainable economic development and regional security. At a regional level and across all transnational organized crime types discussed in this report, a fundamental problem is the significant gaps in data and information related to transnational crime among the PICTs. This is a major hindrance in developing effective and evidence-based responses to transnational organized crime. Details: Bangkok: UNODC, 2016. 130p. Source: Internet Resource: Accessed September 30, 2016 at: http://www.unodc.org/documents/southeastasiaandpacific/Publications/2016/2016.09.16_TOCTA_Pacific_web.pdf Year: 2016 Country: Asia URL: http://www.unodc.org/documents/southeastasiaandpacific/Publications/2016/2016.09.16_TOCTA_Pacific_web.pdf Shelf Number: 140518 Keywords: Counterfeit GoodsDrug TraffickingEnvironmental CrimesHuman SmugglingHuman TraffickingIllegal FishingIllegal LoggingOrganized CrimeWildlife CrimeWildlife Trafficking |
Author: Grocery Manufacturers Association Title: Consumer Product Fraud: Deterrence and Detection Summary: n recent years, more than 150 instances of food and consumer product fraud have been documented at a projected cost to the food industry of $10 to 15 billon per year, plus human pain and suffering, and loss of consumer confidence. Food and consumer product fraud, or economic adulteration and counterfeiting, is increasingly a critical problem for the food and consumer products industries. As a result, The Grocery Manufacturers Association (GMA) Science and Education Foundation engaged A.T. Kearney to conduct the first comprehensive assessment of the problem. The research report, Consumer Product Fraud: Deterrence and Detection, demonstrates that the industry needs to find ways to collaborate to address this problem on a global basis. A better understanding of the problem and its impact begins with mapping categories of adulteration and counterfeiting, and analyzing significant examples. Details: Washington, DC: GMA, 2010. 28p. Source: Internet Resource: Accessed October 11, 2016 at: http://www.gmaonline.org/downloads/research-and-reports/consumerproductfraud.pdf Year: 2010 Country: United States URL: http://www.gmaonline.org/downloads/research-and-reports/consumerproductfraud.pdf Shelf Number: 145411 Keywords: Consumer FraudConsumer ProtectionCounterfeit Goods |
Author: FICCI Title: Socio-Economic Impact of Counterfeiting, Smuggling and Tax Evasion in Seven Key Indian Industry Sectors: Executive Summary Summary: This report is a first ever compilation of facts and figures on counterfeiting, smuggling and tax evasion in seven key industry sectors in India. This research has deployed a methodology which is by far the most comprehensive till date, at least in India. Lakhs of data points have been analyzed and 129 existing sources have been referred and relied upon. The data crunching was followed by a robust validation exercise with relevant stake holders. This qualitative element is the most significant part of the research that needs to be emphasized before this audience and all those who read and make use of it. Our industry and government is very concerned about weak intellectual property protection and enforcement in India. The exponential growth of intellectual property (IP) crime has been illustrated very clearly by various studies and information from a variety of sources as well as the media. While counterfeiting used to consist primarily of apparel and other such items, the high profitability and low risk involved has allowed criminals, including organized crime rings, to become very active, counterfeiting virtually everything including, for instance, pharmaceutical products, electrical products, software, movies, food, wine, personal care products, automobile parts and luxury goods. While IP crime can lack, for some, the social stigma of many other criminal offences, this illegal activity is a drain on the economy and is responsible for loss of employment, a reduction in tax revenues for governments, and poses serious consumer health and safety risks due to the poor quality of products and sometimes hazardous nature of the fakes. Virtually no industry escapes this illegal activity. Details: New Delhi: FICCI, 2012. 9p. Source: Internet Resource: Accessed December 14, 2016 at: http://ficcicascade.com/studies.php?adjacents=10&page=4 Year: 2012 Country: India URL: http://ficcicascade.com/studies.php?adjacents=10&page=4 Shelf Number: 146104 Keywords: Counterfeit GoodsCounterfeitingOrganized CrimeSmuggling of GoodsTax Evasion |
Author: Great Britain. National Audit Office Title: Protecting consumers from scams, unfair trading and unsafe goods Summary: The UK consumer protection system has made some progress in the last five years, with some individual bodies making good impacts. The system as a whole, however, has not yet demonstrated that it provides value for money in protecting consumers from modern scams, unfair trading, and unsafe goods according to the National Audit Office. The Department for Business, Energy and Industrial Strategy (the Department) has overall responsibility for consumer policy but does not routinely calculate the total cost of the consumer protection system. The NAO, however, estimates it to have cost £165 million in 2015-16. Local Trading Standards services received an estimated £124 million and Citizens Advice received £18 million, Although there is limited robust data on the overall scale of consumer detriment, the NAO estimates that consumers lost at least £14.8 billion in 2015, of which £4.2 billion is estimated to be hidden and unreported detriment from problems such as mass marketing fraud and counterfeit goods. The Government has created opportunities for a more preventative approach to consumer protection. The Department has ensured better co-ordination across the landscape, in particular by bringing together the consumer protection bodies in the Consumer Protection Partnership, and integrating case management across the system. National Trading Standards, which was set up in 2012 following a previous NAO report, has made a good impact into consumer protection issues, having prevented £345 million worth of detriment to consumers since April 2014, with a cost-benefit ratio of around 12.6 to 1. Funding for this is still, however, small compared with the size of the problem, and annual budgeting prevents proper long-term planning. While the system has made progress at the national level, it is not keeping pace with the growth in online consumer fraud. The UK’s E-commerce market is now the third largest globally, with over a third of non-food retails sales being conducted online. A national e-crime team has been established but Trading Standards has lost e-crime expertise at the local level. Furthermore, the interaction between the consumer protection bodies and other government agencies tackling online consumer fraud is not yet well developed. The majority of law enforcement is carried out by local authority Trading Standards services. While the consumer protection bodies have improved data on consumer threats, significant gaps remain, with some local authorities having no or few intelligence logs. At the same time, Local Trading Standards have become increasingly small, as local authorities have moved funds to other areas. Overall, local Trading Standards have lost 56% of full-time equivalent staff since 2009, with 20 services in England having funding cut by over 60% since 2011. Some services now have only one qualified officer. Despite this lack of funding, Local Trading Standards teams are expected to enforce 263 different pieces of legislation for different government departments with little direction from government on the priority of these. Local Trading Standards teams are being incentivised to prioritise local issues, in particular safeguarding, with few resources available to either undertake enforcement cases or to organise services on national priorities. The changing nature of commerce has meant more consumer issues are occurring at national and international levels, however only 7% of local trading standards teams base their priorities on nationally-advocated ones. The Competition and Markets Authority is also making good impacts in addressing market-wide consumer issues and estimates that its consumer enforcement work generates at least £74 million of direct financial benefits to consumers annually for a cost of £6 million. Details: London: NAO, 2016. 54p. Source: Internet Resource: Accessed December 15, 2016 at: https://www.nao.org.uk/report/protecting-consumers-from-scams-unfair-trading-and-unsafe-goods/ Year: 2016 Country: United Kingdom URL: https://www.nao.org.uk/report/protecting-consumers-from-scams-unfair-trading-and-unsafe-goods/ Shelf Number: 140477 Keywords: Consumer FraudConsumer ProtectionCounterfeit GoodsScams |
Author: NetNames Title: Counting the Costs of Counterfeiting: A NetNames Report Summary: Today, the ease and reach of digital commerce presents extraordinary opportunities and serious threats to businesses, brands and consumers alike. The collision of counterfeiting, globalization and the fast-growing digital world has created a perfect storm, allowing the supply and demand for fake goods to converge. EXTRAORDINARY GROWTH In an environment where counterfeiting is as profitable as illegal drugs, but remains far less risky for criminals, we are seeing explosive growth. Expanding by over 15% every year, counterfeiting now costs more than 2% of total global economic output, or around $1.8 trillion per year. There is little doubt as to the crucial role played by the digital world in this meteoric rise, with a 15% increase in sales of counterfeit goods online last year. The internet has made counterfeiting a shifting problem that is difficult to combat. Rogue websites, online auctions and digital piracy all give counterfeiters lucrative and anonymous channels for their activities. PHARMA WORST AFFECTED While counterfeiting is a major challenge for every industry, pharma is the worst affected sector by any metric. Counterfeiters have claimed around a third of the entire market - worth some $200 billion - and are implicated in the deaths of up to one million people each year due to toxic or ineffective drugs. ENTER THE DRAGON: THE ROLE OF CHINA The United States, Europe and Australasia - the largest markets for fake goods - are all attempting to harmonize and intensify their multi-pronged strategy to combat counterfeiting and digital piracy. However, the tidal wave of counterfeit and grey-market goods from China shows little sign of being stemmed, remaining responsible for 70% of worldwide seizures. While global companies depend on Chinese manufacturing, this same ecosystem provides a haven of cheap labor and raw materials for counterfeiters. COST AND CONVENIENCE DRIVE CONSUMERS TO COUNTERFEITS Consumers remain largely innocent victims in this struggle, with 90% seeing counterfeiting as morally wrong. However, the demand for branded goods and the desire to find lower prices online mean that 28 consumers unknowingly buy fake goods for every person that does so intentionally. When consumers do deliberately consume counterfeit and pirated goods, cost and convenience are the major factors in their decision: 19% purchase fake products when the original is too expensive, while 22% will turn to digital piracy when there is no legal alternative. THE HEAVY TOLL ON BRANDS Counterfeiting creates a heavy financial burden for brands eroding profitability, market share and outside investment. While fake goods destroy around 10% of top-line revenues, they also force brands to make further investments in combatting the problem, and leave them less able to invest in future innovations. Even more insidious are the risks to both brand reputations and customers. Online, reputations can be instantly damaged in front of a global audience: 78% of consumers would shun a brand if they found themselves on a bogus website, even though the company itself was not negligent. Meanwhile, the risks to customers are not just financial, but also physical. G20 countries now see an estimated 3,000 deaths annually due to counterfeit consumer goods alone. NEW TECHNOLOGIES CREATE NEW RISKS Counterfeiters will continue to exploit the potential of new technologies and the digital world to further their reach, profitability and anonymity. The rise of mobile and social is fragmenting the online landscape - exposing brands not just to counterfeiting, but also to evolving threats such as phishing, cybersquatting, traffic diversion and other forms of online fraud. ACTION IS ESSENTIAL New technologies will also be critical to the fight against counterfeiting, with RFID, digital authentication and new generic top-level domains (gTLDs) all allowing brands to strengthen their posture against fraudsters. In particular, given the skyrocketing risks from the combination of digital channels and fake goods, a proactive and effective online anti-counterfeiting strategy is now essential for every brand to safeguard customers, revenues and reputation. Details: London: Digital Citizens Alliance, 2015. 44p. Source: Internet Resource: Accessed April 13, 2017 at: https://www.netnames.com/assets/shared/whitepaper/pdf/NetNames-Counterfeiting-Report-A4-2015.pdf Year: 2015 Country: International URL: https://www.netnames.com/assets/shared/whitepaper/pdf/NetNames-Counterfeiting-Report-A4-2015.pdf Shelf Number: 144902 Keywords: Consumer FraudConsumer ProtectionCosts of CrimeCounterfeit GoodsCounterfeitingFake GoodsFraudOnline Victimization |
Author: Frontier Economics Title: The Economic Impacts of Counterfeiting and Piracy. Report prepared for BASCAP and INTA Summary: EXECUTIVE SUMMARY Counterfeiting and piracy are highly pervasive across countries and sectors, representing a multi-Billion-dollar industry globally that continues to grow. Measuring the scale of counterfeiting and piracy helps us to understand the size of the problem, and the related social costs. It also helps inform policymakers so that they can target resources appropriately towards combating counterfeiting and piracy. 1.1 Extending the findings of the OECD/EUIPO Our starting point is the recent work undertaken by the Organization for Economic Cooperation and Development (OECD) and European Union Intellectual Property Office (EUIPO) to measure the extent of piracy and counterfeiting in international trade. The OECD/EUIPO Report builds on a previous, ground-breaking study by the OECD in 2008. Since the publication of the initial report, researchers at the OECD have been able to bring significant enhancements to their research methodology, including improved econometric modelling, greater magnitudes of data and increased primary data from customs experts. The OECD/EUIPO estimates that trade in counterfeit and pirated products accounted for as much as 2.5% of the value of international trade, or $461 Billion, in 2013.2 Notably, this figure represents an increase of more than 80% over the OECD's findings in 2008. Our report seeks to quantify the global value of counterfeiting and piracy and related economic and social costs. As revealing as the OECD/EUIPO Report is, its focus is on one specific aspect of counterfeiting and piracy: the international trade of counterfeits across borders. We therefore draw on and extend the OECD/EUIPO Report to include additional types and impacts of counterfeiting and piracy delineated, but not quantified, in their analysis. Specifically, this study quantifies three additional categories of losses: (i) the value of domestically produced and consumed counterfeit goods, (ii) the value of digital piracy, and (iii) wider economic impacts. Our approach and analysis is a follow-on study from our 2011 report for BASCAP, which built on the OECD's 2008 analysis. Our analysis consists of the following four dimensions. - Quadrant 1: Internationally traded counterfeit and pirated goods. We reprise the OECD/EUIPO's recent estimates of the value of counterfeit and pirated physical goods in international trade. This captures the value of counterfeit goods that cross international borders. We also develop projections of this value to 2022. - Quadrant 2: Domestically produced and consumed counterfeit and pirated goods. We estimate the value of domestically produced and consumed counterfeit and pirated goods using the findings of the OECD/EUIPO Report as a starting point. This captures the value of counterfeits that are produced and consumed within the borders of a country. - Quadrant 3: Piracy distributed through the Internet, mainly by peer-to-peer (P2P) sharing and streaming. We estimate the value of digital piracy in film, music, and software, which is not captured in the OECD/EUIPO Report as it is based on physically traded goods. Our analysis draws on industry data and studies. - Quadrant 4: Wider economic and social impacts. Building on the magnitudes calculated in quadrants 1-3, we measure related economic and social impacts of counterfeiting and piracy. Specifically, we: - Develop an econometric estimate of the impact of counterfeiting and piracy on foregone economic growth. □ Present effects of the displacement by counterfeiting and pirating activities of legitimate activities on employment, FDI, and sales tax revenues. - Estimate costs of criminality related to counterfeiting and pirating activities 1.2 Key findings Our analysis shows that the scale of counterfeiting and piracy globally is large, that it has grown since previous estimates, and that this growth is expected to continue. Our estimates of these values across all four quadrants are shown in Table 1.S below. We estimate that the value of international and domestic trade in counterfeit and pirated goods in 2013 was $710 -$ 917 Billion. We estimate that, in addition to this, the global value of digital piracy in movies, music and software in 2015 3 was $213 Billion. We estimated wider economic costs associated with the effects of counterfeiting and piracy on the displacement of legitimate economic activity. This estimate also provides a starting point for inferring fiscal losses. We also estimated the effects of counterfeiting and piracy on Foreign Direct Investment (FDI) and crime. We find significant effects on the job market through the displacement of legitimate economic activity by counterfeiting and piracy. We estimate net job losses in 2013 to lie, globally, between 2 and 2.6 million, and we project net job losses of 4.2 to 5.4 million by 2022. We also estimated the effects of changes in the incidence of counterfeiting and piracy on economic growth. Our econometric model, estimating the impact of changes in the intensity of counterfeiting and piracy on economic growth, suggests that a percentage point reduction in the intensity of counterfeiting and piracy would be worth between $30 Billion to $54 Billion in 2017 for the 35 OECD countries. Our forward projections begin with OECD/EUIPO's estimates of international trade in counterfeit and pirated goods, augmented by forecasts of growth in import volumes and the ratio of customs seizures to real imports. Using these, we forecast that the value of trade in counterfeit and pirated goods could reach $991 Billion by 2022. We carry out a similar exercise to illustrate how the size of domestic production and consumption of counterfeit and pirated goods may change over time. We use data on recent and forecast rates of growth in global trade and GDP, and projected growth in the rate of counterfeiting. Using this approach, we forecast that the value of domestically produced and consumed counterfeit and pirated goods could range from $524 - $959 Billion by 2022. Applying the methodology used in our previous study, we combine two different approaches to project digital piracy into the future. The first approach assumes that digital piracy will maintain its share of total counterfeiting and piracy over time. The second approach assumes that digital piracy grows proportionally to global IP traffic. Combining these two approaches, we forecast that the value of digital piracy in movies, music and software could reach from $384 - $856 Billion by 2022. Details: Brussels: Frontier Economics, 2017. 61p. Source: Internet Resource: Accessed April 14, 2017 at: http://www.inta.org/Communications/Documents/2017_Frontier_Report.pdf Year: 2017 Country: Europe URL: http://www.inta.org/Communications/Documents/2017_Frontier_Report.pdf Shelf Number: 144910 Keywords: Counterfeit Goods Counterfeiting Digital PiracyEconomic Crimes Fake GoodsFinancial Crimes Pirated Products |
Author: Global Initiative Against Transnational Organized Crime Title: Transnational Organized Crime and the Impact on the Private Sector: The Hidden Battalions Summary: his paper is based on a detailed review of the scale and nature of organised crime's infiltration of the private sector. These findings are a 'call to arms' for the international private and public sectors to transform their co-operation and teamwork. We have adopted a practical definition of organized crime as that which is carried out by a group of people, suspected of serious criminal offences, over a prolonged period, motivated by profit or power. In our analysis of six major private sector industries, six specific forms of organised crime stood out as either having material impact on the private sector, or using the private sector as facilitators. Money laundering is the process of making dirty money look clean. One estimate puts it at 2% of global GDP - c.$1.5 trillion. Money-laundering is an 'enabling crime', facilitating organized crime (as well as terrorism) with social and economic costs. Asset misappropriation refers to stealing from businesses. For example, cargo thefts cost as much as $30 billion in losses each year worldwide. Counterfeiting and contraband, whilst thought of as being a consumer goods crime, is rife in a broad range of sectors, in particular technology products and pharmaceuticals, to devastating effect. It is estimated by OECD at $461billion, or 2.5% of world trade. Fraud and extortion remain strongly present in the financial, construction and real estate industries. In construction extortion could account for of 20-30 per cent of lost project value. Human trafficking. High volume, low skilled labour enterprises such as construction and building, have the highest penetration of trafficking incidence in the private sector. Cyber Crime. Hacking attacks cost the average American firm $15.4 million per year over. In 2015 68,000 URLs containing child sexual exploitation and abuse (CSEA) images were hosted online on 1,991 domains. The reputational impact means major tech companies apply significant collaborative resources to weeding out criminal, terrorist and CSEA activity. Finding#1: The Scale and Impact of Crime in the Private Sector is Truly Staggering. A conservative estimate of the value of organized crime was $3.6-$4.8 trillion, in 2015/2016, 7% of global GDP. The broader impact of organized crime is difficult to assess as it is multi-dimensional, and shared across the private, public sector, and society itself. The impact on the private sector only - in terms of revenue loss - is estimated at c$130 billion. The Institute of Economics and Peace (IEP) calculated the financial cost of terrorism at over $52 billion in 2014. A conservative estimate of total transnational organized crime is $870 billion a year. This is more than six times the amount of official development assistance and close to 7% of the world's exports of merchandise Finding #2 Private sectors are either facilitators or targets. Crimes are either done 'to' private sector organisations, or 'through' them. Sectors are either the targets of fraud or asset theft themselves, particularly in construction, consumer goods ($460 billion counterfeit goods), and financial card fraud, or they facilitate crime unwittingly, through use of technology networks by fraudsters to target victims, e.g. the real estate sector laundering dirty funds or the transport industry moving illicit goods. Regulation varies between the 'victim' and 'enabling' industries. Laws are in place to criminalise the use of the private sector for technology or money laundering crime. The victim industries, however, often are reliant on existing laws around theft, or copyright infringement, which are not tailored to the activities of TOC groups and tend to have lower penalties for infringement. Finding #3 Organized crime's impact on the private sector is growing not shrinking. Counterfeit goods have risen from $250 billion to $461 billion in the last 8 years. Asset theft in the transport and logistics theft rose by over 90% 2015 to 2016. There is a sense that regulation is not working: money laundering seizures equated to 0.2% of all laundered funds in one study; and after the dark web's Silk Road was taken down, many sites sprung up to take on and indeed grow the trade. Finding #4 Direct impact of Crime Disproportionately felt in the global south. Sweatshops flourish in South Asia; trafficking of labour and sex workers originates predominantly in Africa, Asia and Eastern Europe; corruption in natural resources damages production in Africa and the Caucasus; technology fraud is driven from eastern and southern Europe, West Africa and the Middle East. Whereas in developed economies counterfeit drugs may comprise less than 0.2 percent of the market developing markets are often beset by 30% fakes, as a UNODC report showed for anti-malarial drugs in Africa. Globalization is increasing the 'attack surface' for TOC groups. The abuse of the often weaker regulatory regimes in the Global South by TOC groups further increases the risk for the private sector operating in these areas. Finding #5 Responses re confrontational rather than collaborative. There are very few examples of successful public and private sector co-operation against TOC groups. Private sector organisations complain that communication with the law enforcement sector is one-way and that the regulatory reporting burden, designed to combat crime, can act as a deterrent to co-operation. Tangible results have been seen when industries take the lead on disrupting the work of TOC groups, such as TAPA the Transported Asset Protection Association Details: Geneva, SWIT: The Global Initiative, 2017. 84p. Source: Internet Resource: accessed December 7, 2017 at: http://globalinitiative.net/wp-content/uploads/2017/12/gitoc_tocprivatesector_web-1.pdf Year: 2017 Country: International URL: http://globalinitiative.net/wp-content/uploads/2017/12/gitoc_tocprivatesector_web-1.pdf Shelf Number: 148755 Keywords: Cargo TheftContrabandCounterfeit GoodsCybercrimeExtortionHuman TraffickingIllicit TradeMoney LaunderingOrganized CrimePrivate SectorStolen PropertyTheft of Goods |
Author: Interpol Title: Operation Opson VI: Targeting Counterfeit and Substandard Foodstuff and Beverage: December 2016 - March 2017 Summary: KEY ELEMENTS 65 countries and 20 private partners, from 22 EU Member States (MS) and 43 non-EU countries, participated in Operation OPSON VI. This represents the largest number of participating countries, especially for non EU countries, since the beginning of OPSON in 2011. 57 countries took part in OPSON V. In total, 13,407.60 tonnes, 26,336,305.3 litres and 11,118,832 units of either counterfeit or substandard food and beverages have been seized during the four month operational phase of OPSON VI. The total value of these illicit goods amounts to 235,681,849.87 EUR. Participating countries reported more than 50,128 inspections and checks, and 13,711 persons arrested or investigated. They opened 6,282 administrative and criminal cases. Investigations started in the framework of OPSON VI led to the dismantling of seven organised crime groups, reported as such by the countries and involved in the production of illegal food, other goods smuggling and other criminal activities. In terms of product range, the levels of seizure within OPSON VI differ significantly compared with OPSON V. The highest quantity of seized products is alcohol whereas the first category of seized products in OPSON V was condiments (e.g. vegetable oil, spices, and sauces). Enforcement actions during OPSON VI led to the closure of at least 183 illegal alcohol factories and to the seizures of production materials, ranging from special bottling machines to counterfeit excise stamps, caps, labels or bottle security rings. The second category of seized goods is meat with almost 5,146 tonnes removed from the markets. The reported infringements are, in most cases, related to deceiving consumers (27%, of which 1% are IPR violations), food safety (22%) and fiscal infringements (19%). Besides the seizures of food and beverages, the participating countries reported important seizures of tobacco, coca leaves (in Peru), pharmaceuticals and cannabis (in Djibouti) which were discovered in the course of OPSON VI. The debriefing meeting was hosted by the Irish authorities in Dublin on 2 - 3 October 2017. Details: The Hague: INTERPOL, 2017. 52p. Source: Internet Resource: Accessed February 2, 2018 at: https://www.europol.europa.eu/publications-documents/operation-opson-vi-targeting-counterfeit-and-substandard-foodstuff-and-beverage Year: 2017 Country: International URL: https://www.europol.europa.eu/publications-documents/operation-opson-vi-targeting-counterfeit-and-substandard-foodstuff-and-beverage Shelf Number: 148974 Keywords: Consumer ProtectionCounterfeit GoodsCounterfeit ProductsOrganized Crime |
Author: KPMG Title: Eurasian Economic Union Illicit Cigarette Report Summary: Key findings: Illicit cigarette consumption has grown rapidly in the Eurasian Economic Union from 2015 to 2018 - Illicit cigarette consumption rose from 0.6% to 6.8% of total consumption in the past 4 years, representing over 20bn cigarettes in 2018 - Had these cigarettes been sold legally in 2018, an additional 68bn RUB would have been collected in taxes (VAT & Excise) across the Eurasian Economic Union in 2018, with 99% of the taxes lost from Russia - A large proportion of the growth occurred in the Russian Federation, where non-domestic cigarette consumption increased from 0.7% to 8.7% of consumption, of which 90% was illicit. Widening price differences between countries and free movement of goods and people are two possible drivers behind the growth in illicit cigarette consumption - The price differences (in particular between Belarus and Russia) have increased by over 40%, making cigarettes from Belarus more affordable(с) - In addition, the establishment of the EEU (in 2015) enabled free movement of goods and people, reducing customs inspections between countries and removing limits on goods imported for personal consumption - The 8 billion Belarusian labelled cigarettes identified in Russia were not supported by the number of travellers buying for their own personal consumption, indicating that a high volume of cigarettes are contraband. Furthermore the seizures of millions of Belarusian labelled cigarettes in Russia indicated that these cigarettes are transported by criminal networks. Distributors of illicit cigarettes have grown to exploit the price differences, reduced affordability and the lack of personal allowance quotas when travelling between EEU countries, especially from Belarus to Russia - Belarus is the primary source of illicit cigarettes, with almost 8 billion of the 20 billion illicit cigarettes identified in this study coming from Belarusian trademark-owned manufacturers, whilst production capacity was reported at 29 billion cigarettes(4) which is not supported by domestic consumption (estimated at 16 billion) - Belarusian labelled cigarettes were identified across Russia, indicating that they are being purchased by consumers who are not travelling across the Belarusian border - In addition, 47% of C&C identified had no identifiable origin including counterfeit, illicit whites and cigarettes with suspicious Russian tax stamps, which have had no taxes paid in any jurisdiction. Some may be illegally manufactured inside Russia - Illicit cigarette smuggling has been shown to help enable Organised Criminal Groups (OCGs), using similar networks to sell other products and its rapid growth in EEU is unlikely to be any different, as profits can be high whilst penalties remain low. Throughout the report, our analysis has focussed on the following categories of cigarette consumption: Legal domestic consumption - Cigarettes legally purchased and consumed within the country of study, based on In Market Sales data provided by the tobacco industry Non-domestic legal (ND(L)) - ND(L) represents cigarettes which are purchased in another country but legally consumed in the country of study, through cross-border or tourism purchases. This represents 0.8% of total consumption in the EEU Illicit consumption - divided into three components: - Illicit Whites: Cigarettes that are usually manufactured in one country/market but which the evidence suggests have been smuggled across borders during their transit to the destination market under review where they have limited or no legal distribution and are sold without payment of tax - Contraband (Other): Cigarettes where the tax was paid legally in one country, but the cigarettes were taken to another country and re-sold without any applicable tax, mainly when the excise tax regimes in the source country are lower than the destination country. Many of these cigarettes originated from an EEU country and whilst they were legally transported (due to no legal personal allowance limits) they were then re-sold illegally - Counterfeit: Cigarettes that deliberately copy a legally traded brand, deceiving consumers who believe that they are purchasing this brand. Counterfeit was only identified by participating trademark owners in the Empty Pack Survey - Russian suspicious tax stamps: Cigarettes where further analysis has revealed that the packs may have been sold without the payment of tax, despite bearing domestic labelling Details: London: Author, 2019. 48p. Source: Internet Resource: Accessed June 28, 2019 at: https://www.stopillegal.com/docs/default-source/external-docs/eea-illicit-cigarette-report-2018-english.pdf?Status=Temp&sfvrsn=ab4677d7_2 Year: 2019 Country: Europe URL: https://www.stopillegal.com/docs/default-source/external-docs/eea-illicit-cigarette-report-2018-english.pdf?Status=Temp&sfvrsn=ab4677d7_2 Shelf Number: 156923 Keywords: AsiaCigarettes ContrabandCounterfeit Cigarettes Counterfeit Goods EuropeIllicit Cigarettes Illicit Markets Illicit Trade Organized Crime Tax Evasion Tobacco |