COUN T E R F E IT I T P RODUC R O DU C TS
The production and availability of counterfeit goods has been a longstanding issue in the electrical contracting sector. We examine the scale of the problem – and the dangers of being tempted by deals which seem to be too good to be true BY ROB SHEPHERD
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roduct counterfeiting is a big business. A recent report from the Organization for Economic Cooperation and Development put the value of fake goods at more than £400 billion – a figure equivalent to 3.3 per cent of world trade. Lighting devices, cable, wiring accessories, circuit breakers and fuses are just some of the products in electrical contracting that are counterfeited and readily available for contractors to use, knowingly or otherwise. The word ‘counterfeit’ refers to a product that illegally uses a manufacturer’s branding and infringes intellectual property rights in order to dupe a potential purchaser. This is different to a product that is simply substandard and doesn’t meet regulatory compliance. Nevertheless, there are always people willing to produce
goods that are designed to lull unsuspecting purchasers into a false sense of security. Jeremy Hodge, British Cables Association (BCA) secretary general and director of the Approved Cables Initiative (ACI), says the matter is particularly problematic in the electrical contracting sector. “The main issue is the risk of an installation that fails an inspection or a test and needs extensive rework,” he says. “For cable that has been permanently fitted into a building, the cost of rework could be many multiples of the difference between the original cable cost and the counterfeit. With this then goes reputational damage, which can take a while to recover – if it does at all.” It is surprising that any reputable electrical contractor would risk purchasing such products, but
30%: THE PROPORTION OF PEOPLE WHO HAVE BOUGHT ELECTRICAL PRODUCTS ONLINE THAT TURNED OUT TO BE COUNTERFEIT
£400BN: THE GLOBAL VALUE OF FAKE GOODS
Mark Froggatt, technical director at the British Approvals Service for Cables (BASEC), believes that the tendering process is a factor. “Every penny counts, and it is this financial pressure which can create problems, leading to the use of counterfeit goods,” he warns. “However, opting for a low-cost product that does not hold any formal product approval will have a higher chance of causing issues further down the line.” WEB OF DECEIT Online trading has introduced additional opportunities for counterfeiters. The scale of this problem has been highlighted by Electrical Safety First, which found that some of the most popular e-commerce sites are being used to exploit online shoppers, exposing them to thousands of substandard, counterfeit and suspected recalled electrical goods. “We surveyed 2,000 people and found that 30 per cent have bought electrical products online that turned out to be counterfeit,” explains Martyn Allen, technical director at Electrical Safety First. “We also found that 92 per cent of people think online retailers have complete control over third-party sellers, regulating what goods they offer. This isn’t the case.” Chris Stammers, compliance services manager at the British Electrotechnical and Allied Manufacturers’ Association (BEAMA), shares this concern. “With the exponential increase
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