The year 2024 has witnessed a significant increase in the production and trafficking of counterfeit goods, severely impacting the economy and consumer rights. Businesses, as direct victims, need to be fully aware of this alarming reality and proactively implement measures to protect their brands.
Statistics On Counterfeit Goods Trafficking In 2024
According to a report by the Government Newspaper, legal violations in commerce are becoming increasingly complicated, especially the issue of counterfeit goods.
- 5,464 violations: Related to the production, business and trafficking of counterfeit goods and intellectual property infringements in 2023, a 48% increase compared to the same period last year. This number highlights the rapid rise of the counterfeit issue.
- 146,678 violations: Total number of commercial law violations detected and handled, including:
- 11,499 cases: Trading and transporting banned and smuggled goods (a 3.37% decrease compared to the same period).
- 129,713 cases: Commercial and tax fraud (a 4.51% increase compared to the same period).
- 2,253 cases: Directly related to the trading, production and transportation of counterfeit goods and intellectual property infringements.
- As of May 2024: 37,383 cases inspected, with 34,225 cases administratively handled. Among them:
- 4,773 cases: Trading and transporting banned and smuggled goods.
- 27,199 cases: Commercial fraud and tax evasion violations.
- 262 cases: Prosecuted, involving 339 individuals.
- Total value of confiscated goods: Up to 744 billion 826 million VND.
- Total fines submitted to the state budget: From violations handling amounting to 8 trillion 491 billion 913 million VND.
Analysis Of Causes And Consequences
The statistics vividly depict the worrying situation of counterfeit goods, intellectual property violations. But what are the causes behind this reality?
- Rapid growth of e-commerce: While benefiting consumers and businesses, the explosive growth of e-commerce has inadvertently created loopholes for bad actors to conduct counterfeit goods trade in a more sophisticated and uncontrolled manner.
- High profits: The lure of profit drives individuals to flout the law, disregarding consumer health and rights by producing and trading counterfeit and low-quality goods.
- Consumer awareness: Many consumers still lack the knowledge and experience to distinguish between genuine and counterfeit products, or they opt for cheaper products of unclear origin, thereby supporting counterfeit goods.
- Penal sanctions: In some countries, the penalties for producing and trading counterfeit goods are not deterrent enough, leading offenders to disregard the law.
The severe consequences of producing and trading counterfeit goods include:
- Impact on consumer health and safety.
- Economic losses for businesses, damaging brand reputation.
- Hindrance to a healthy investment and business environment.
- Loss of state budget revenue.
Solutions For Businesses
Faced with this alarming situation, businesses need to proactively implement comprehensive and effective solutions to protect themselves.
- Register intellectual property rights: This is a crucial step, affirming a business's ownership over its brand and products and providing a legal basis to combat counterfeit goods.
- Enhance management and quality control: Develop professional, transparent production and business processes, tightly control input materials and apply product traceability technology.
- Strengthen cooperation with authorities: Actively collaborate with authorities to provide information and documents related to counterfeit production and trafficking networks.
- Raise consumer awareness: Actively educate and raise consumer awareness about the harm of counterfeit goods, guiding them on recognizing and choosing genuine products.
- Apply anti-counterfeit technology: Invest in and apply advanced technology solutions such as anti-counterfeit labels, QR codes, blockchain, etc., to help consumers easily verify and trace product origins.
Lameco - Accompanying You In Brand Protection And Development!
Lameco is committed to supporting businesses in their journey to protect their brand and achieve sustainable development. With our experience and optimal solutions, we offer services such as intellectual property rights consulting and registration, quality management system development, anti-counterfeiting technology application, distributor management, and grey market management. Contact us today to learn how Lameco can protect your brand against counterfeit and imitation products.
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Lameco - Accompanying you in brand protection and development!