Spot the Fake
Pay close attention, or you may be fooled.
By Darlene Bremer
According to Gallup Consulting and the U.S. Chamber of Commerce, 64 percent of counterfeit electrical goods are purchased at legitimate shops and retailers. And according to a 2007 Consumer Survey conducted by the Electrical Safety Foundation International (ESFI), Rosslyn, Va., 60 percent of Americans admitted that they would not be able to distinguish a counterfeit electrical product from a genuine one.
A counterfeit electrical product could be a knockoff of a name-brand product, one that bears an unauthorized certification mark, or a product where visible defects are readily apparent. In these instances, the U.S. Consumer Product Safety Commission (CPSC) advises buyers to scrutinize the product, packaging and labeling and look for a certification mark from an independent testing organization, such as Underwriters Laboratories (UL), and the manufacturer’s label.
“Trademarked logos that look different than usual may signal a counterfeit,” said Scott Wolfson, deputy director, CPSC’s Office of In-formation and Public Affairs.
But what about counterfeit products that appear to be perfect copies of the genuine article?
“This is the scariest type of counterfeit because the danger is within, and there is nothing on the outside to alert you that there might be a problem,” said Brett Brenner, president, ESFI.
Brenner noted that the best way to avoid these devices is to buy from authorized distributors and retailers.
One of the most obvious indicators of a counterfeit product historically has been price. If the price is too good to be true, the product may be counterfeit.
“However, price has become more difficult to use as a tool to gauge whether a product is counterfeit as prices have come up a little,” said Travis Johnson, vice president of legislative affairs for the International AntiCounterfeiting Coalition, Washington, D.C.
Where products are found can be another indicator of their legitimacy. Products requiring extra vigilance include those purchased from deep-discount stores, flea markets, online auction sites where there is no way to inspect the product or its packaging, street vendors or individuals, but that’s not the only thing to watch for.
“Suspicions should be raised if there is no return policy or the sales tax is missing from the sales receipt or if there is no receipt,” Wolf-son said.
Unfortunately, however, a universal standard for identifying counterfeit products doesn’t exist.
What to do?
Distributors who discover counterfeit products should report them to the legitimate manufacturer to determine if the products are theirs and, if not, work with the company to trace the counterfeit to its source.
“The distributor should also report the counterfeit product to UL, which will help in tracking down the source,” said Brian Monks, UL’s vice president of anti-counterfeiting operations.
If the counterfeit poses a safety hazard to the consumer, the distributor or contractor should report it to the CPSC’s office of compli-ance’s defect investigation division. In addition, Brenner said, determine whether any of the counterfeit devices were sold or installed and, if so, immediately take steps to recall the products and replace them with legitimate ones.
Distributors or contractors who discover counterfeit products also can work with the National Electrical Manufacturers Association and its Anti-Counterfeiting Committee, which was established in 2003 to develop programs to help the electrical industry combat this growing and dangerous problem.
Contractors that find they have inadvertently received counterfeit products should go back to the seller and explain the situation.
“If the source is uncooperative or has disappeared, the contractor can work with the local police department as well as report the inci-dent to the Chamber of Commerce, the Better Business Bureau, and even write the appropriate congressperson,” Monks said.
The contractor also may want to work with the project owner and architect, depending on the products involved.
Law enforcement agencies that would have an interest in learning about an incident concerning counterfeit products include the FBI, Immigration and Customs Enforcement, and U.S. Customs and Border Protection.
“There’s no liability in the U.S. for unknowingly purchasing counterfeit goods, so there is no risk to the contractor or distributor in re-porting the incident to these agencies,” Johnson said.
“If it can be proven that there is a large-scale operation involved and there is a safety hazard, law enforcement is very receptive to working with the entire supply chain and will investigate incidents to track down, arrest and prosecute the counterfeiter,” Monks said.
However, Monks warned, a relationship with law enforcement requires a commitment from the supply chain to work with the appro-priate agencies, support the investigation, and make court appearances when necessary. ?
Law enforcement is gaining some additional tools to help in the efforts.
“The 2008 Intellectual Property Act harmonizes the power of the courts to seize illegal product and the equipment used to make it,” said Jim Pauley, vice president, industry and government relations for Schneider Electric’s North American Operating Division, Palatine, Ill.
It also dedicates FBI and prosecutorial resources for anti-¬counterfeiting and anti-piracy enforcement. But law enforcement is only part of the solution.
“Distributors and contractors must take action to help fight this problem. Make sure your company is taking the necessary steps to prevent counterfeit products from entering your own supply chain,” Brenner said.
BREMER is a freelance writer based in Solomons, Md., and a frequent contributor to ELECTRICAL CONTRACTOR and TED magazines. She can be reached at darbremer@comcast.net.
