Feature
FAKES ON THE MAKE
Copy cats and the reality of counterfeiting in
the retail sector, Ruth Orchard, Director General
of the Anti-Counterfeiting Group (ACG)
A
LTHOUGH they say ultimate aim is to change society's Ruth Orchard
imitation is the sincerest perception of counterfeiting as a
form of flattery, there is harmless activity, by exposing the
nothing endearing about worldwide economic and social cost Back in the real world, I recently
the multi-billion pound of intellectual property crime. met representatives from the
global counterfeiting market. Counterfeiting is now recognised Association of Town Centre
Counterfeiting is one of the by UK and international law Management, and as a result I am
biggest global threats to British enforcement as a serious organised even more keenly aware of the
brands and is now known as 'the crime and those fighting it need to impact of counterfeiting on
crime of the 21st century'. Its threat collaborate and share information retailers, particularly at community
extends to legitimate business of all and experience as much as possible. level. Not only do street sellers
kinds - suppliers, distributors and Industry's investment and creativity peddle fakes right outside the
retailers - as well as to the consumer are under global attack. doors of local shops, but also the
in the form of poor quality and Intellectual property is the subject trade in fakes attracts other
dangerous goods. In turn, the of important trade and political criminal elements. This is because
effect on consumer confidence can interests, and is an area that all counterfeiting links to every other
undermine the value of and trust in business leaders, decision makers serious organised crime you can
legitimate retail trade. Best and links in the supply chain need think of – drugs, guns and people
estimates suggest that the market to understand. IP crime attacks the smuggling, prostitution and child
for counterfeit products could be as most valuable asset of many pornography and even terrorism.
much as 10% of all world trade, or companies and economies today, At community level, smaller
the equivalent of the annual spend and undermines future economic retailers are driven out of business
on world tourism. growth. by the counterfeit traders, for
The Anti-Counterfeiting Group The Internet is also fuelling a example independent video rental
(ACG) was founded in the UK in huge increase in the trade in fakes. stores and shops selling jeans and
1980 with just 18 members in the This global and virtual car boot sale sportswear. They cannot compete
automotive industry, who is the fastest growing market for with the lower prices (and no
discovered that they all had a fake goods of all kinds, and the overheads) of the street corner
common problem with counterfeit scale, speed and anonymity of its seller, the Sunday car boot sale, the
parts. We now represent nearly 200 operations make it almost casual market stallholder or the
organisations globally, operating in, impossible to police or assess shortlived, but effective, discount
or providing specialist advice to, interms of economic impact. store which fences the illegal goods.
most industry sectors where • £84million was spent in the UK An independent consumer survey
counterfeiting is an issue. Our online during Christmas 2007 in the clothing & footwear sector
members are UK and multi-national • £30billion was spent online in the conducted in 2007 concluded that
companies, manufacturing UK in 2006 £3.5billion would have been spent
practically everything you can think • 20% of all shopping is now done on genuine items in a year, if the
of – counterfeiting has moved well online. fakes which consumers had bought
beyond luxury designer goods, were not available. This means a
which were amongst the earliest EXTENT OF THE PROBLEM ONLINE loss to retailers and traders, as well
targets. Fakes today include toys, with thanks to ACG Brand as industry, and that economic loss
foodstuffs, electrical appliances, Protection Group member will impact on local communities
medicines, parts for motor vehicles MarkMonitor and jobs, as well as national
and even fake aircraft parts. In 2006 world trade was valued at: interests and revenues.
Via our lobbying, awareness and $11,762 billion
(1)
Successive consumer surveys show
networking activities, ACG 6% of that was counterfeits: increasing awareness of the real
campaigns against the trade in $705 billion
(2)
cost of all those so-called bargains.
fakes on behalf of consumers and 14% of those were online: In fact, there is a very high price to
legitimate business interests, in $98.7 billion
(3)
pay – counterfeiting is a massive
partnership with government and fraud on the consumer, and a
law enforcement agencies, and
Sources: (1) World Trade Organisation
(2) World Customs Organisation
growing threat to social and
other rights organisations. Our (3) Industry surveys/reports economic stability worldwide. RF
24 • RETAIL FRAUD
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44