The problem of counterfeit cosmetics and other counterfeit beauty products has become much more prominent and frightening of late with reports of fake beauty SKUs containing toxins that have led to several serious, high-profile injuries — and even one death. A unit chief at the Federal Bureau of Investigation has noted, “Counterfeit cosmetics sometimes contain harmful or even carcinogenic ingredients, perhaps not intentionally designed to harm —but because the counterfeiters feel no obligation to protect the consumers, they are defrauding.” As reported in Cosmopolitan (May 12, 2015, online) and elsewhere, these products — such as fake Laura Geller GlamLASH — are often manufactured in unsanitary conditions, and can be contaminated. Unsuspecting consumers who use these products have gotten rashes, dermatitis, eye infections, acne and eczema — and in some cases, long-term, deep physical effects.
Looking at the global economics of counterfeiting, fake branded products cost the retail economy an estimated $250 billion, according to USA Today (“9 most counterfeited products in the USA,” March 29, 2014, online). Other estimates put this number as high as $650 billion. This tidal wave of fakes poses a brand nightmare both to product manufacturers/suppliers and retailers — not to mention in cases such as dangerous, unregulated fake electric hair dryers and toxic counterfeit makeup, a very real danger to consumers. How do these phonies get into the supply chain? And can they be stopped?
Continue reading this story in Beauty Store Business'October digital edition.
[Image courtesy of Andrew Brodsky]
