Beware
of the bogus
Counterfeit products, including
drugs, electrical appliances and food and beverages, are flooding
the market
By Nalaka Nonis and Hisham Hilaly
"You name it, they have it", may sound a cliche but it
aptly describes the numerous counterfeit products that have flooded
Sri Lanka's market today. Not only do these products take the people
for a jolly good ride, but on a more serious note they pose health
and safety risks.
When we did
an investigative round we found that these bogus products ranged
from food items such as rice, sugar, ice cream, and vegetable oil
to medicines and household items such as electrical appliances,
mosquito coils, porcelain and ceramic ware.
Consumers are
often duped because the master minds behind the fakes make them
look almost identical to genuine products. Consumers also complain
that there is a lack of awareness programmes.
The safety risks
are mainly associated with sub quality electrical equipment which
pose a physical threat to consumers. Meanwhile some producers of
genuine products whose reputations have been tarnished due to fake
products blame the government for doing little or nothing about
this booming racket.
A.R. Sarma
director of Sigma Overseas Co. Ltd., bottlers and distributors for
Crystal Natural Mineral Water says theirs is the only product that
conforms to WHO standards and the industry has been seriously affected
by fakes that pose a grave health risk.
A reputed electrical
company Clipsal has warned people against counterfeit products that
could explode when being used as the inferior products are unable
to withstand the electrical load.
"We constantly
receive complaints from customers who have been fooled by the duplicate
products, which have a short life span," Operations Manager
O. Symons told The Sunday Times. He said the demand for their products
have dropped as sub standard equipment is available at low prices.
He said although the company had spent more than Rs. six million
to prevent fake Clipsal products being marketed, it had been of
little help.
We found out
that inferior food items too are being packed by unscrupulous traders
under popular brand names. Araliya Impex, which markets food items
such as rice and sugar has been one of the many companies affected.
M. Rajkumar,
Chairman, Araliya Exporters (Pvt) Ltd told us that consumers have
been complaining about sub standard rice and sugar products and
the company had to tell them that they had been swindled by duplicate
products.
Reputed photocopying
paper company Avalon too has been affected by local traders who
have started pumping in low quality paper under its name into the
market. Avalon known for its high quality comes in moisture proof
packaging where as the fake paper comes poorly packed. Dushan Roberts,
Marketing manager Avalon Enterprises (Pvt) Ltd said these counterfeits
have brought down their sales by 40%.
Pettah is a
leading counterfeit hub and we observed a thriving business of world
reputed Eveready batteries being sold under the name of Everyday
batteries. The difference in the logo and label are so slight that
only a very observant consumer would spot the difference. We also
walked into a maze of of black marketeers and duplicate racketeers
who were selling electrical items, pens, phones, VCDs, DVDs, watches
and phone accessories. CFL bulbs that were going for as low as Rs.
60, were nothing but florescent lamps. Counterfeit Nokia phones
are also available at Pettah.
Mabole is a
popular area where businessmen go to get duplicate products manufactured
or labelled. The businessman makes a payment and provides the name
of the product to be copied to the counterfeiting manufacturer,
and the job is done.
Although counterfeiting is wide-spread it's short lived and authorities
say they find it difficult to crack down on operations as racketeers
in search of a fast buck enter the market for about two to three
months and then disappear from the scene. Officials also said that
some reputed companies are afraid to seek justice as the thriving
racket has political and some times underworld patronage.
Counterfeit
products that are imported to the country mainly come from the annual
canton fair held in China. Any counterfeit product under a desired
popular brand name can be obtained at this fair. This operation
was revealed in 2001 when Customs detained a consignment of Clipsal
counterfeit products worth Rs. 12.4 million being imported from
China.
Another modus
operandi used by businessmen to send the fake items into the country
is through housemaids. However Dr. L.S.S.K. de Silva, Deputy Director
General of Sri Lanka Standards Institution said that any product
that does not meet the required standards is rejected outright.
Director, National
Intellectual Property Office Dr. D.M Karunaratna said they are only
responsible for the registration of trademarks and brand names.
A common complaint from business organizations whose products are
being faked was that there are loopholes in the legal system that
help the culprit to get away after paying a small fine. They cited
the case where a couple of months back Slave Island police arrested
a person while filling water from the Beira lake into mineral water
bottles. He was later released after courts charged him a fine of
Rs. 3000.
Many companies
also said they avoid legal battles against counterfeiters because
the process takes a long time. However Sudath Perera Associates
chief Sudath Perera, a lawyer who handles counterfeit cases told
The Sunday Times that it was possible to convict culprits involved
in acts of counterfeiting under the prevailing laws. He said the
consumers had three options through which they could claim for damages.
(see ‘Legal options’).
1. A consumer
who has been sold a counterfeit product could make a complaint
to the Consumer Affairs Authority within three months of purchasing
an item under the Consumer Affairs Authority Act No 9 of 2003.
2. A complaint can be made to the police under section 475 of
the Penal Code.
3. It is possible for the purchaser of a fake item to institute
proceedings in the Magistrates Court by way of a private plaint
under Section 136(1) (a) of the criminal procedure code read with
the Section 117(c) and Section 150 and/or sec151 and 152 (1) and
152 (2) of the Intellectual Property act No. 30 of 1980.
Dos and donts
1. Go for
a reputed company.
2. Go for a known brand name.
3. Always check the brand name and the logo thoroughly.
4. As the brand name and logo can be copied at times, insist on
a guarantee from the seller for your product.
5. Make sure you get a receipt and not " approval bills"
or other scribbled chits.
6. Always check the expiry date whenever you purchase a product.
7. With regard to medicine always go to a well recognised and
authorised pharmacy.
8. When it comes to food and infant items give first priority
to quality.
9. Try to get information regarding duplicates from sources carrying
out awareness programs.
10. Do not fall for adds that promote unfamiliar products.
Duplicate
Viagra with reverse effect among counterfeit drugs
Drugs such as antibiotics, aphrodisiacs and contraceptives have
not been spared by counterfeit conmen who pump in sub standard duplicates
into the market, posing a health risk to consumers.
The trend is
to counterfeit fast moving medicines that include blood pressure
and diabetic tablets. Some of the medicines that are being counterfeited
include Dionil, Metphormin, Ibuprofen, vaccines and saline.
Daya Abeywickrama,
Executive Director of the Family Planning Association of Sri Lanka,
told The Sunday Times that sub standard counterfeit contraceptives
were being sold in the pharmacies at a cheaper rate.
He said Depoprovera,
an injection given to women to prevent pregnancy hadbeen subjected
to the counterfeiting business in Sri Lanka. He said the racketeers
import outdated stuff from Pakistan and India and then market them
here after re-labelling them under a popular brand name with a new
expiry date. He said doctors should be alert to this.
He also said
rejected condoms from Bangladesh and Pakistan ended up in the local
market. He warned that Viagra, a popular aphrodisiac manufactured
by Pfizer, too, has its duplicate which has a total opposite effect.
Pakistan and India are the most popular markets for counterfeit
medicines, Mr. Abeywickrama said. |