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Counterfeit Products

 Counterfeit products are on the rise. As product counterfeiters become more sophisticated, it's getting increasingly difficult to detect the fakes.

 Counterfeiters are becoming increasingly adept at the copying, packaging and labeling of any product that sells well - and they are making enormous profits. It is almost impossible for the average consumer to detect the difference. Even retailers have been duped.

 Electronic Goods

 In 2004, it was estimated that approximately 10% of so-called brand-name electronic goods purchased by consumers turned out to be counterfeit. Counterfeiters deliberately use a false trademark that is identical with, or substantially indistinguishable from, a registered trademark. The aggressive counterfeiters often reproduce the exact housing of the brand name product and simply have a manufacturer provide cheaper components.

Refurbished products are another common source of counterfeit products. The seller usually replaces component parts with inferior drives, memory modules or graphics cards then sells the product as the real thing. Most users wouldn't be aware of the switch as they wouldn't open up the case and even if they did, they may not know what to look for. The substituted components usually work, although often not as well or as long.

Everyone Loses

The losses are far reaching - affecting trademark owners, consumers and the economy at large. Reputable companies that pride themselves on producing excellent products suffer a loss of reputation and revenue when counterfeit and replica products bear their logo. In many cases, counterfeiters do not charge customers tax but retain it. Because counterfeits are often made with substandard materials and are not subject to the rigorous testing procedures that reputable manufacturers must carry out on their products, they can not only prove disappointing but can even pose safety hazards.

 Brand name manufacturers are fighting back with their own investigators that track down the culprit manufacturers and lay charges or start legal proceedings. The manufacturers are also trying to stop the flow by hiding product registration numbers and serial number identifications on their products.

 Protecting Yourself

 Counterfeit products may be half the cost of the genuine article but is it really a bargain if the goods are poor quality, the performance is disappointing or they prove to be inefficient or even a safety hazard?

 To avoid counterfeit products, be wary of the most obvious clues:

  Incorrect, smeared or blurred printing on the packaging;

  Incorrect spelling of brand name and other spelling mistakes;

  Lack of warranty or guarantee documentation; and

  Unbelievably low price.

 As counterfeiters make the cheapest possible products in order to maximize their profits, they often pay less attention to packaging. Does the packaging look right? Does it provide contact information for the manufacturer? Most legitimate packaging contains manufacturers' codes, trademarks, copyrights, toll-free telephone numbers as well as bar codes, holograms and recycling logos.

 Here are some other tips that can help you ensure that the product you purchase is the real thing.

 •  Be choosy about where you buy products. Deal with well-known, reputable companies.

  When purchasing online, deal with well-known, reputable companies. Secure websites are recognized by HTTPS before the site address instead of the more familiar HTTP. Always save or print the purchase confirmation page as a record of the transaction. As this will usually have a confirmation number, it is useful if you need to track the delivery.

  Buy products with which you are familiar or for which you have done some research, even if the price is a little higher.

  If you are uncertain about a supplier, check the manufacturer's website to see if it provides a list of legitimate dealers and contact information.

  Check the serial number. Some manufacturers now provide online authentication programs so consumers can verify the product has been assigned a serial number. If the serial number is not registered, the product is likely a fake.

 If It's Too Good to be True…

 The old adage "if it's too good to be true, it probably is" will stand most purchasers in good stead. In the long run, a counterfeit product could turn out to be very costly in terms of lost revenue, downtime or inferior performance. In a worst case scenario, a serious malfunction could lead to equipment damage and even personal injury. 

 

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