Does counterfeiting cause any damage?

Does counterfeiting cause any damage? 

Yes. Although some believe counterfeiting is a victimless crime, it has many far-reaching consequences. To begin with, depending upon the nature of the product being counterfeited, there can be serious health and safety concerns for consumers, such as in the examples of counterfeit baby formula, toys for children, medications, car parts, or electronic goods. In nearly every instance, counterfeited goods are not made with the same quality materials or to the same high standards as the original.

In addition, counterfeiting damages brand owners’ reputations and lowers consumer confidence in the affected brands. Counterfeiting also damages brand owners and retailers selling legitimate products by causing missed sales opportunities and actual job losses by manufacturers and retailers. Consumer confidence and the value of branding may suffer when purchasers discover that the product they bought, believing that it was being sold under a recognized brand, is in fact not authentic. Damages do not stop with brand owners and consumers because counterfeiting also deprives national economies of customs duties and tax revenues.

Counterfeiting may also be linked to organized crime or criminal activity, which may pose serious threats to the health and safety of consumers, economies and national security.