By Mark DaCosta- Counterfeit consumer goods (or counterfeit and fraudulent, suspect items – CFSI) are goods manufactured and offered for sale under a known and respected brand name without the authorisation of the owner of the brand. Such items are offered with the deliberate intent to dupe or “fool” customers into believing that they are purchasing the genuine thing. The practice is illegal and – as had been explained in part-I of this series – it can be dangerous, even deadly.
While the Food and Drugs Analyst Department is the regulatory body responsible for some of the most important consumer products (food and drugs) in Guyana, the agency is almost invisible. There is virtually no information publicly available about the prevalence of CSFI locally.
In Part-I of this series, this publication focused on how CFSI may negatively impact the health and lives of Guyanese. The problem though is an international one, and it has wide-reaching implications.
Researchers have written about the enormous economic impacts of counterfeit consumer goods.
In 2018, the respected United States (US) based Forbes publication wrote that consumer product counterfeiting was the largest criminal enterprise in the world. Forbes stated that, “Sales of counterfeit and pirated goods totals US$1.7 trillion per year [at that time], which is more than drugs and human trafficking combined. It is expected to grow to US$2.8 trillion, and cost 5.4 million jobs by 2022,” Forbes predicted.
Recent reports suggest that the projections made by Forbes were accurate.
Other experts have reported that, among the leading industries that have been seriously affected by counterfeiting are software, music recordings, motion pictures, luxury goods, clothes, sportswear, perfumes, toys, aircraft components, spare parts, car accessories, and pharmaceuticals.
Counterfeit medicines are the most profitable sector of illegally copied goods, with lost revenues – to the industry – of up to US$217 billion per year. Fraudulent drugs are known to harm or kill millions around the world. And in the process, damaging the brand names of reputable pharmaceutical manufacturers.
Guyanese will recall that in part-I of this series, it was mentioned that there may be fake medications and personal care items on the local market. A matter that is obviously of major concern, and worth mentioning again because people can be hurt.
Guyanese artists, and other content-creators, too, would note that experts recognise that intellectual property, music, art, and other creations are routinely copied, pirated, and sold in Guyana. And the creative person – who probably spent sleepless nights creating the product – gets nothing for the hard work. This practice is wrong, and authorities should take concrete steps to ensure that creative people are rewarded.
The Organisation for Economic Cooperation and Development (OECD) agrees. A statement by the OECD states the observation that counterfeit products encompass all products made to closely imitate the appearance of the product of another as to mislead consumers. Those can include the unauthorised production and distribution of products that are protected by intellectual property rights, such as copyright, trademarks, and trade names. Counterfeiters illegally copy trademarks, which manufacturers have built up based on marketing investments and the recognised quality of their products. Obviously, this is unfair to creative people who work hard to make a good product.
According to the United States based The Counterfeit Report, “China produces 80% of the world’s counterfeits and [the United States is supporting that by purchasing the items]. Whether or not it is the intention to undermine the U.S. economy, [the fact is] we [in the United States] buy about 60 to 80 percent of the products,” the Report lamented.
According to experts, the biggest consumers of counterfeit consumer goods are developed economies such as the US, Italy, France, and Switzerland. Meanwhile, the biggest producers include mainland China, Hong Kong, and Turkiye (formerly Turkey). Village Voice News is of the view that unless the Guyanese authorities take decisive action to control the problem, Guyana may become a bigger target for local and international counterfeiters as the economy grows owing to the influx of oil money.
