Illicit Tobacco Most Reported Counterfeit Product in UK

Cigarettes and tobacco products were the most reported counterfeit goods in the UK in 2019/20, according to a survey conducted by the country’s Intellectual Property Office (IPO) and IP Crime Office.

86% of the UK Trading Standards authorities which participated in the survey said they had investigated cigarette/tobacco cases, followed by clothing (81%) and alcohol and footwear (both 47%).

Top ten counterfeit/private products investigated by Trading Standards.

The locations for the sale of counterfeit goods also revealed a trend away from traditional locations like street markets. While ordinary shops were the most common location investigated (reported by 75% of authorities), social media featured in 67% of reports.

All told, 41% of investigations involved private residences, which ties in with 2019 findings from the OECD/IPO that more than half of the counterfeit and pirated goods imported into the UK in 2016 were sold to consumers who were aware they were buying fake products. Less than a third of cases involved street vendors and outdoor markets.

‘It is notable that authorities have demonstrated links with organised criminal groups in over 35% of submissions,’ said the report, adding that online streaming services remain a key area of criminal activity.

Other trends pointed out in the report included greater use of self-storage facilities by transgressors for storing illicit goods and serving as addresses for front companies and as retail outlets – as well as an increase in the production of counterfeit goods within the UK, rather than traditional sources like China.

Members of the Anti-Counterfeiting Group (ACG) trade association reported increasing numbers of physical products entering the UK by air, sea and road, from countries such as China, Hong Kong, India, Pakistan, Turkey, Singapore, Macedonia, Thailand and Malaysia, during 2019.

The use of the UK as a stop-off point for counterfeit goods destined for other European countries and beyond was also of growing concern, said the ACG, particularly as government funding for border force operations has declined, thereby limiting the number of shipments that can be intercepted.

Meanwhile, there is growing evidence that sophisticated counterfeit networks are selling high quality counterfeits at close to full price, leading consumers to believe they are purchasing genuine goods.

According to the study, ‘Facebook and Instagram continue to be a focus for brand protection teams as they mitigate risks to consumers presented by unsafe counterfeit goods.

‘Other platforms such as Twitter, Gumtree, Amazon and Alibaba are also favourites for counterfeiters, who use the worldwide reach of such platforms to facilitate sales of their infringing products.’ 

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/913644/ip-crime-report-2019-20.pdf.