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$3 billion lost to counterfeits

May 23, 2019

A study by Harris Interactive commissioned by HP showed that the global economy is losing around $3 billion (€2.6 billion) every year to counterfeit products sold.

This HP-commissioned report from Harris Interactive showed that although there is more enforcement and more positive results in catching counterfeit product, there is still an increase in counterfeit activity.

Two recent successful operations saw a series of raids on premises in Maputo, Mozambique and Kampala, Uganda, resulting in the seizure of 33,000 contraband items.

Following these raids, in September and October last year, Ugandan authorities dismantled a counterfeit ring in January of this year, raiding another Kampala warehouse where the fakes were being manufactured. A further 77,000 illicit products were confiscated, taking the recent total to 110,000.

According to an article by This Daily Live this is “already costing the global economy $3 billion (€2.6 billion) per year according to the Imaging Supplies Coalition, the growing risk of fake products was driven by an increasingly broad supplier ecosystem, lack of certainty by buyers that their purchases are genuine, and a lack of awareness of the risks of purchasing counterfeit goods.”

Talking to This Daily Live Glenn Jones, the Director Global Anti-Counterfeit Programme at HP said: “Every one of the key market indicators we monitor show a significant increase in the risk of counterfeit print supplies. For companies like HP, counterfeits undermine decades of focused research and testing aimed at creating superior ink and toner, and reliable, high-quality cartridges for our customers.”

Jones added: “For users, fakes cause a significant increase in print failures, low page yield, poor print quality, leaks and clogs, in addition to voiding hardware warranties.”

The report showed that in the past for years there is a decline in companies searching for and working “with a trusted, primary supplier” and an increase of businesses buying “on availability”.

This Daily Live describes that “with a broader, less trusted supplier network, Small and Medium Enterprises (SMEs) are losing the ability to discern the authenticity of their cartridges with absolute confidence. All regions heavily affected by counterfeiting, in particular the Middle East, Eastern Europe and Africa, with almost three quarters of businesses surveyed feeling confident their purchases were genuine.”

With HP’s support, around 12 million fake products have been seized in the last five years, with 4,500 audits and inspections being conducted by HP.

HP’s ACF Programme seeks to educate its customers and partners in the value of vigilance against counterfeit supplies, while cooperating globally with law enforcement agencies to bring an end to the illegal operations producing counterfeit components.

In recent months, as well as its continued efforts across the African continent, such as in Uganda and Nigeria, HP has also been successful in the fight against fakes right across the globe, including recent breakthroughs in the United Arab Emirates.

Categories : Around the Industry

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