News

FMCG companies fire-fight to curb counterfeiting menace – Source: Business Standard Online

But experts say that incidence of reporting by companies is actually not high, which is compounding matters

The market for spurious fast moving consumer goods (FMCG) in India is estimated to be nothing less than Rs 45,000 crore, according to a recent study by industry body Assocham. This is almost 23% of the overall Rs 2-lakh-crore FMCG market in India, an eight percentage point growth in five years.

What more? The market for spurious goods is only estimated to grow given the sophistication with which manufacturers today are imitating and producing fake goods.

But are FMCG companies really doing enough to tackle the menace? While players insist they are, experts say that incidents of reporting of counterfeiters is not high in India. “In Mumbai alone, cases of counterfeiting reported is negligible. Just about 15-20 cases for all varieties of counterfeiting is reported in the city, which is less when you take into account how huge this problem is,” says D Sivanandan, erstwhile director general of police, Maharashtra. Sivanandan now runs an advisory firm called Securus First in Mumbai, which consults companies on the issue of counterfeiting. “The first step is to report in greater numbers if this menace has to be tackled,” he says. “For that a new piece of legislation which reflects today’s realities must replace the Copyright Violation Act of 1957 which governs counterfeiting in India. I also feel that there should be a separate economic agency to look into matters pertaining to counterfeiting if the problem has to be tackled effectively,” he says.

Companies pushing hard

Players say they are working closely with law enforcement authorities to bring fraudsters to task. The country’s largest FMCG company Hindustan Unilever (HUL) says that it engages with the police and government bodies at regular intervals to conduct raids and seizures. “In 2013, for instance, we conducted nearly 500 field-level actions with support from police to seize counterfeit and fake products. Similarly in 2013 we worked with the customs to successfully help them make seizures of five consignments of counterfeit products being imported into the country,” Hemant Bakshi, executive director, home & personal care, HUL, said.

Executives from companies such as Emami say they have a separate cell headed by an ex-assistant commissioner of police, whose job is to investigate leads provided by the in-house sales force on places where counterfeit products of its popular brands are made. Once these are identified, the team and local authorities raid these factories.

Firms such as Dabur have gone a step further to carefully map areas where spurious varieties of their products are made. Once they are identified, the company quickly swoops down on them with the help of local authorities to curb the practice.

Some companies also work with external agencies (such as detective agencies) to track down counterfeiters. But is this enough? Hardly anything if the problem has to be nipped in the bud.

A recent report by the Federation of Indian Chambers of Commerce and Industry pegs the revenue loss to the government on account of spurious personal care products at Rs 4,646 crore. If other categories are taken into account, the number will exceed Rs 10,000 crore, experts say.

Privately, companies say that coordination with law enforcement authorities is a challenge, which is why counterfeiters slip through the cracks. The second issue is of imitations and cheap products coming through grey channels, which often becomes difficult to contain given the collusion between government officials and counterfeiters sitting abroad.

Dinesh Dayal, chief operating officer, LÓreal India, who is also the president of the Indian Beauty & Hygiene Association, says that the body is now working closely with both the police as well as government authorities to sensitise them to the problem and close gaps in anti-counterfeit actions.

http://www.business-standard.com/article/companies/fmcg-companies-fire-fight-to-curb-counterfeiting-menace-114061800361_1.html

Lear More

Operation “Wipe-out” seize counterfeit products in Kigali

Counterfeit products valued in millions of francs have been seized in the City of Kigali in an operation code named “wipe-out” conducted jointly by the Rwanda National Police and the international police body – Interpol. Among the forged goods confiscated in an operation conducted on June 17 include 500 print cartridges, 15 sharp television sets, vim, a washing powder and other Uniliver products.

 

Others include 30 boxes of baygon, an insect-side, 30 cartons of royco, a food flavor, nido, a powdered milk and forged Nike, sharp and lacoste products like shoes and T-shirts.

 

Wipe-out is an operation conducted in the Eastern and Southern Africa Police chiefs’ cooperation organization member countries to combat cross-border crimes including trafficking illicit and counterfeit goods.

 

http://www.police.gov.rw/news-detail/?tx_ttnews%5Btt_news%5D=1825&cHash=89d225ece60c3daa4a9587382babd505

Lear More

Intellectual property and counterfeiting in Thailand

Whether you know it or not, a day spent in Bangkok will almost certainly involve exposure to intellectual property rights violations and counterfeit goods. In addition to the ubiquitous knock-off designer there are pirated music CDs, counterfeit clothes, accessories and electronics, pirated operating systems for computers, pirated movies streaming 24/7 and even fraudulent vehicles, international driving licences, diplomas, pharmaceutical products, food and passports. That last issue gained prominence with the discovery of two passengers travelling on fake passports on the missing Malaysia Airlines flight MH370. Over the course of the next few articles, we will outline the various laws that are in place to protect intellectual property rights and reduce counterfeiting here in Thailand.

http://www.bangkokpost.com/news/investigation/415366/intellectual-property-and-counterfeiting-in-thailand

Lear More

Forget Handbags: Household Items Among Goods Seized in Counterfeit Busts

Counterfeiting has become a $500 billion-a-year criminal industry that permeates everything people carry, wear and even ingest. “[These are] everyday American products that could be retailed in any store around the United States,” Lev Kubiak, director of the Intellectual Property Rights Center in Washington, D.C., told ABC News’ “20/20.”

 

http://abcnews.go.com/US/forget-handbags-household-items-goods-seized-counterfeit-busts/story?id=24123862

Lear More

Tobacco smuggling: MPs criticise ‘lack of action’

Efforts to tackle tobacco smuggling have been hampered by a “farcical” lack of action by the government and its agencies, a committee of MPs has said. The number of illicit cigarettes smoked in the UK rose by 49% to a billion in 2012, suggesting a reduction in enforcement action, the MPs said.

The Commons home affairs select committee said the failure to deal with rogue products was “of grave concern”.

HM Revenue and Customs said tackling tobacco smuggling was “a priority”.

The committee was particularly critical of the failure to fine a single firm for deliberately oversupplying cigarettes to high-risk markets in order for them to be smuggled back to the UK.

Taxpayers lose out on around £2bn in unpaid duty because of the illegal trade.

tp://www.bbc.com/news/uk-27842834

Lear More

Concerns about counterfeit products and water quality spur crucial workshop

“The fate of good food in terms of labelling now rests with you,” said Resident Representative of the Pan American Health Organisation and World Health Organisation (PAHO/WHO), Dr. William Adu-Krow, as he addressed the participants of a ‘Food nutritional labelling and water testing’ workshop yesterday. And there is significant progress already being made to ensure that authenticity of food labelling obtains on the market, Dr. Adu-Krow noted, as he presented brief remarks at the start of the forum held at the Institute of Applied Science and Technology building, University of Guyana campus. “I think that you are making a lot of inroads…Based on the expertise available we are confident that food inspectors and environmental health officers will be equipped to exercise and enhance regulatory oversight on food labelling for compliance to nutritional labelling and claims as stated on the labels on food products.”

 

http://www.kaieteurnewsonline.com/2014/06/11/concerns-about-counterfeit-products-and-water-quality-spur-crucial-workshop/

Lear More

Government To Fight Smuggling, Counterfeiting And Piracy – Minister Of Trade & Industry

Mr Haruna Iddrisu, Minister of Trade and Industry, has renewed government’s commitment to provide tax incentives to manufacturing companies that make use of local raw materials. He said government will also strengthen its security network to fight the menace of smuggling, counterfeiting and piracy as a protection to the local manufacturing companies. Mr Iddrisu gave the assurance when he launched the new Distell Ghana Brewery Plant in Tema.

Distell Ghana Limited are the distillers of Hunters’Gold and Savannah Dry Cider Beer, Knights and a Royal Reserve Whiskies, Amarula, wines, Brandys and gin across the continent and beyond.

The establishment of the plant in Ghana is an indication that those beverages will no longer be imported from South Africa, but will be produced in Ghana to serve the West African market.

http://www.gbcghana.com/1.1754251

Lear More