COUNTERFEIT PERFUMES AND COSMETIC PRODUCTS

In 2019, perfumes and cosmetics were the third most commonly seized IPR-infringing goods at the EU’s external border (in terms of the number of seizure procedures). These counterfeit perfumes and cosmetics were valued at approximately EUR 40 million at the time of the seizure . A decrease in reported seizures of these commodities was observed in 2020, when only approximately EUR 20 million worth of counterfeit perfumes and cosmetics were seized . Nonetheless, packaging materials for perfumes became one of the most-seized fake goods at the EU’s external border in 2020 . In 2019, the cosmetic products and perfumes seized at the EU’s external border were mainly from China, Turkey and the United Arab Emirates, while in 2020 they were mainly from China and Turkey. These products were mostly seized as part of post and parcel shipments and, to a lesser extent, on passengers crossing the border . Items originating from Turkey are typically transported by road . In addition to ready-to-use IPR-infringing goods, product components, such as aroma compounds, fixatives and solvents, are increasingly being seized. These components are used to create the final counterfeit products in illegal laboratories within the EU . In some cases, the laboratories operate on a large scale – assembling, packaging and labelling IPR-infringing products. Some counterfeiters employ the ‘fake perfume tester scam’. As part of this scam, criminals sell counterfeit versions of well-known perfume brands at low prices, which they justify by claiming the products are tester versions of the genuine product, not suitable for regular retail. The fake tester bottles are even marked as ‘not for sale’, as if they were genuine testers . Counterfeiters continue to exploit established and emerging online platforms. The increase in the number of sales of counterfeit goods online is a continuing trend . The OECD and the EUIPO have recently conducted an analysis on seizures registered by EU customs authorities as being related to online sales. They found that in recent years the share of detentions of cosmetics and perfumes related to online sales has exceeded 70 % . Online marketplaces remain the chief distribution channels for counterfeit goods in the EU, including cosmetics and perfumes. These types of commodities are widely distributed in small parcels . IPR-infringing items from the cosmetics industry also appear on darknet marketplaces, with discounts of up to 90 % of the retail price of the authentic product . Cheaper production methods and improved technology have prompted counterfeiters to move into the production of daily use items, including over-the-counter medicines, shampoo, toothpaste and cosmetics . IPR-infringing cosmetics and perfumes are often side seizures in operations originally targeting other commodities. The distribution of counterfeit cosmetics and perfumes raises significant health and safety concerns. Applied directly on cutaneous tissues, illicit perfumes, cosmetics and personal care products can pose serious health threats. Laboratory tests have shown that counterfeit perfumes often contain harmful chemicals. Fake cosmetics can contain toxic levels of chemicals and harmful substances such as arsenic, mercury and lead; fake toothpaste can contain poisonous substances, such as diethylene glycol.

Products

1. packaging materials for perfume
2. cosmetic products
3. aroma compounds
4. fixatives
5. solvents
6. tester bottles
7. over-the-counter medicines
8. shampoo
9. toothpaste
10. personal care products