Research Highlights Role of Power Brokers in Counterfeit Trade
Research conducted by British researchers has shed light on the influential role certain power brokers play in the growth of the counterfeit trade. This trade not only poses risks to consumers but also costs companies significant amounts of money. The University of Portsmouth in the UK conducted a study to investigate the involvement of influencers in selling counterfeit products. The study involved interviews with 2,000 people living in the country, and the results provided clear evidence to support the hypothesis.
Major Human and Economic Costs
The research revealed that approximately 22% of consumers active on social networks purchased counterfeit products based on the recommendations of influencers. This poses a significant problem, as the working conditions of those involved in the production of counterfeit goods are often extremely poor. These individuals earn very low incomes and are frequently subjected to dangerous circumstances. The sector has witnessed countless injuries and even deaths. However, despite these risks, some customers still choose to support this trade. The study found that the majority of these customers are young, between the ages of 13 and 16, and 70% of them are men. They are often unaware of the risks involved and are drawn to counterfeit products due to the high prices associated with genuine branded items. On the other hand, older individuals are typically more skeptical of the endorsements made by unscrupulous content creators.
It is important to note that such practices come with significant costs to the economy. A study conducted by the European Union Intellectual Property Office revealed that counterfeit bags, clothing, and electrical goods alone cost the EU 60 billion euros and resulted in the loss of 434,000 jobs. While this study primarily focuses on the United Kingdom, it is one of the first to delve into this topic. In France, authorities have also taken action against abuses by influential individuals, implementing a recent law that prohibits the advertising of certain products or services such as risky financial investments or cosmetic surgery. Non-compliance with these provisions can lead to severe penalties, including up to five years in prison and a fine of 375 thousand euros.
For more information on this new legislation, you can refer to our dedicated article here.
