The Growing Threat of Counterfeit Goods to Consumers and the Economy

NEW DELHI : On the occasion of World Anti-Counterfeiting Day, the Consumer Online Foundation (COF), India’s premier consumer rights advocacy group, issued a stark warning regarding the escalating menace of counterfeit and illicit products. Invoking the spirit of the iconic “Jago Grahak Jago” (Wake Up, Consumer, Wake Up) campaign, the foundation emphasized that counterfeiting has evolved far beyond simple intellectual property theft it has transformed into a critical hazard to public health and a severe economic drain on the nation.

Established in 1999 by the Global Anti-Counterfeiting Group (GACG), World Anti-Counterfeiting Day is observed annually on June 10. The initiative unites governments, enforcement agencies, brand owners, and consumer organizations worldwide to combat the devastating impacts of illegal trade on businesses and national economies.

A Pervasive Threat to Daily Life:
According to the COF, the market for fake goods now permeates almost every sector of daily consumption. From sub-standard electrical components, automotive parts, and cosmetics to lethal counterfeit medicines and contaminated daily staples like paneer, ghee, spices, and edible oils, the risks to regular citizens are unprecedented. Unlike legitimate brands, these illicit goods bypass rigorous regulatory checks, taxation, and quality control systems entirely.

The scale of this global crisis is staggering. A report titled Mapping Global Trade in Fakes estimated global trade in counterfeit and pirated goods at a whopping USD 467 billion, accounting for 2.3% of all global imports.

The domestic landscape is equally alarming. The State of Counterfeiting in India report revealed a shocking statistic: nearly one in three Indian consumers encountered a counterfeit product over the past year.

“The spirit of Jago Grahak Jago is more relevant today than ever before,” stated Prof. Bejon Kumar Misra, Founder Trustee of the Consumer Online Foundation and a globally recognized consumer policy expert. “Counterfeit and illicit products expose consumers to severe quality, safety, and health risks. Furthermore, the economic fallout hits legitimate businesses, drains government revenues, and dampens innovation.”

The Digital Frontier of Fake Goods:
The rapid proliferation of e-commerce, social media marketplaces, and informal digital platforms has added a complex layer to the problem. Data shows that online aggregator platforms account for 53% of all counterfeit purchases, making digital channels the primary highway for modern illicit trade.

To combat this, the COF is calling for urgent reforms, including:

Stricter digital monitoring systems and increased accountability for e-commerce giants.

Enhanced market surveillance and robust regulatory oversight.

Tightened collaboration between law enforcement, industry stakeholders, and civil society.

Ultimately, the foundation stresses that an informed public remains the strongest line of defense.

Empowering the Indian Consumer:
The fight against deceptive trade practices is hardwired into the DNA of the Consumer Online Foundation. It was under the leadership of Prof. Misra during his tenure as Chairman of the Consumer Coordination Council that the landmark “Jago Grahak Jago” campaign was conceptualized and adopted by the Government of India.

Today, COF stands as the nation’s only voluntary consumer organization certified under ISO 9001:2015 for Consumer Complaint Redressal Services. Since launching its digital grievance platform, the foundation has successfully resolved disputes for over one million aggrieved consumers across India spanning major metros and remote regions alike.