COUNTERFEIT
ELECTRICAL PRODUCTS
KILL
BEAMA Anti-Counterfeiting
Working Group
FINDING AND COMBATING
COUNTERFEITERS
1
WHAT DOES THE BEAMA A.C.W.G. DO?
2
UNDERSTANDING THE PROBLEM
3
THE LIABILITIES
4
WHAT CAN BE DONE ABOUT IT?
The BEAMA Anti-Counterfeiting WG
WHAT DO WE DO?
BEAMA Anti-Counterfeiting
Working Group – Members
BEAMA Anti-Counterfeiting
Working Group
Raising Awareness
Sequel to “Counterfeit Kills”
available on DVD and CD
free of charge. Arabic and
French versions also
available.
“Counterfeit Kills – Protect Yourself”
BEAMA Anti-Counterfeiting
Working Group
Raising Awareness
Poster issued in UK
to all EDA members
BEAMA Anti-Counterfeiting
Working Group
Raising Awareness
Fax Flier
e-mailed to over
2000 UK Distributors
Fact Sheet
distributed to over
10,000 Electrical Contractors
Signed by BEAMA, BASEC, EDA , LIF, BCA, ASTA, IP ALLIANCE,
TSI, SELECT, ESC, ECA, VOLTIMUM and GAMBICA.
Electric Dragon – 2010
• Permanent operation in China since 2000
• Chinese investigators exclusive to us
• Great co-operation from authorities
• Visits to Guangzhou Trade Fair
twice per year to raid stands and
gain intelligence
• Over 200 factories raided
• 12 Million products seized plus packaging & tooling
• 16 brands now represented and growing
Electric Dragon – 2010
Yiwu market
China
• Largest wholesale market in the world – 36,000 Traders
• Because of the action taken by BEAMA the Yiwu market
has removed many of its counterfeit electrical products
• We also tackle the problem at Trade Fairs worldwide,
including the Canton Fair and Middle East Trade Fairs
Arriving at an illegal factory in China
Production continues during a raid
Components ready for assembly
Moulding Area – Claimed to have ISO 9001!
A hairdryer for temperature calibration!
C
Fakes being taken to the warehouse
C
BEAMA Warehouse – Wenzhou
DESTRUCTION – Wenzhou
DESTRUCTION – Wenzhou
BEAMA Anti-Counterfeiting
Working Group
Projects
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Electric Dragon – China
Electric Lion – Kenya, Tanzania
Electric Cheetah – Nigeria, Ghana
Electric Falcon – Kuwait
Electric Ibex – Jordan
Electric Panda – Dubai, UAE
Electric Oryx – N.E. Africa
Electric Bulldog – UK
Kuwait – May 2008
• Kuwait, like many Middle East and African
countries, have huge counterfeit issues
• It is reported that there were 5,000 house fires
during 2007
• “Up to 80% could be attributed to
Fake Electrical Appliances”
(Jassam Al-Mansourie – Head of Kuwait Fire Service)
• 6 children killed in 1 blaze
Successes
• Government and business (rights owners) leaders are
engaged in expanding efforts to combat counterfeiting
– 90 countries were represented in the most recent global
Intellectual Property (I.P.) congress in Dubai
• Governments have strengthened legal frameworks and
enforcement efforts
– Enforcement directive in the European Union
– The March 2006 ‘Stop Counterfeiting in Manufactured
Goods Act’ in the United States
– Trademark law revisions in China
– 60 countries identified to revise their I.P. laws
UNDERSTANDING THE
SCALE OF THE PROBLEM
Counterfeiting Today
• CD’s
• Baby Milk
• DVD’s
• Car Spares
• Designer Clothes
• Aircraft Spares
• Handbags
• Cosmetics
• Watches
• Cement
• Software
• Pharmaceuticals
• Identities
• Electrical Products
Counterfeit Market Shares –
Electrical
Counterfeits share of Electrical Installation
Products :
– Africa 25-75%
– Middle East 20-40%
– Eastern Europe 10-40%
– Western Europe and UK? Growing share!
ANY ELECTRICAL PRODUCT CAN BE
COPIED
CIRCUIT BREAKERS, FUSES and CABLE
EVEN CERTIFICATION MARKS CAN BE
COPIED
DESIGNS AND PART NUMBERS
CAN BE COPIED
LABELS AND HOLOGRAMS
CAN BE COPIED
Chinese labels to be replaced with branded
Labels – both state “Made in USA”
Example – Schneider
• Copies being imported into
UK
• Not Schneider branded,
but promoted as
interchangeable
• Many are dangerous but
this M.C.B. exploded on test
• Trading in such products is
illegal
• You should only buy from
authorised distributors
Testing of a Counterfeit Circuit Breaker
Example – Eaton|MEM
• Products found in UK market
intended for Middle East and
African markets
• Non compliant to UK standards
and non CE marked products
involved
• Sometimes over labelled by others – infringing
Intellectual Property rights
• Actions being taken against distributors trading in
these illegal products
Example – Counterfeit
Nintendo Charger
• British boy aged 7, Connor O’Keefe, killed by
counterfeit Gameboy charger
• On holiday in Thailand found in hotel room still
holding wires
• Charger below safety standards – 1mm gap
between circuits
• Coroner stated that the “lead was effectively live”
Typical Problems
• Fuses – no fuse elements
• Circuit Breakers – overload elements omitted
• Cable – fewer and smaller strands
• Copper – can be low quality giving much
reduced current carrying capacity
• Moulding material and plastics – usually recycled
material, giving no strength on short circuit events
ALL THE ABOVE CAN CAUSE
OVERHEATING, FIRE, INJURY AND DEATH
Electric Bulldog – UK
• Retailers, Distributors and D.I.Y Stores targeted
• Fake Circuit Breakers, Fuses, Wiring Accessories
and Lighting products found
• Some Products found which were copies of
genuine products but in other brand names
• Rarely do they conform to the standards that they
state on the product – can be very dangerous
• So, copies are here in the UK, either as dead copies or
passing off but in small quantities - however things are
changing!
Electric Bulldog – UK
• The world is getting a smaller place
• With Internet, trade is very easy
• Free Trade Zones and Duty Free Areas
can hide illegal trading
• Customs resource at the ports of entry
cannot control every consignment.
• Chances of getting caught and deterrents
are very low
• All means the UK is an easy target
Electric Bulldog – UK
• Loss of
BRAND REPUTATION
• Issues of GUARANTEES
• Issues of HEALTH & SAFETY
• Issues of LITIGATION
• Issues of PUBLIC LIABILITY
WHAT ARE THE
LIABILITIES?
LIABILITIES
• CONSUMER PROTECTION ACT.
• GENERAL PRODUCT SAFETY REGULATIONS
Enforcement Trading Standards & Courts.
Sale and/or Use of Unsafe Electrical Products,
even with no injury involved.
FINE OF UP TO £5000 and/or
IMPRISONMENT UP TO 3 MONTHS
LIABILITIES
• HEALTH and SAFETY AT WORK ACT.
• ELECTRICITY AT WORK Regulations.
Enforcement - Health & Safety Executive.
Sale and Use of Unsafe Electrical Products
could be referred to the High Court -
UNLIMITED FINE and
MAXIMUM 2 YEARS IMPRISONMENT
LIABILITIES
• CONSUMER PROTECTION ACT
Civil Action could be taken by an Injured Party.
Full compensation through the courts for any
injury or property damage caused by sale of
unsafe products.
UNLIMITED DAMAGES CAN BE CLAIMED
(could run into several millions)
LIABILITIES
• CONSUMER PROTECTION ACT.
Where an Individual is involved and
MANSLAUGHTER is proven,
Police or H&SE would prosecute.
Maximum Term is – LIFE IMPRISONMENT
LIABILITIES
• CONSUMER PROTECTION ACT.
For CORPORATE MANSLAUGHTER
Police or H&SE would prosecute
UNLIMITED FINE levied on the company with a
guide up to 10% of the company’s annual turnover.
LIFE IMPRISONMENT for any Senior Management
involved in the sale of the unsafe products
LIABILITIES
• Low Voltage Directive – in UK, the
Electrical Equipment (Safety) Regulations.
• Marketing of Goods Package – New rules
coming into effect from 2010.
This will introduce new safety-related
responsibilities on importers, wholesalers &
distributors placing products on the market,
whether or not their name appears on those
products.
WHAT CAN WE DO
ABOUT THE PROBLEM?
Questions for Distributors,
Installers and Specifiers
• Are you aware of counterfeit electrical products
in the market?
• Do you ever consider electrical products
to be non-compliant to BS and IEC
standards?
• Does anyone check certification
marks to see if they are authentic?
• If in any doubt, please check with the
original manufacturer or certification body.
Message for Distributors,
Installers and Specifiers
• Check packaging, labelling and text
• Check for any alterations to product or
package
• Check CE and certification marks
• Check the weight
• Obtain through authorised and
known suppliers.
Message for Distributors,
Installers and Specifiers
• Remember to suspect prices that are too good to be
true – they might not be!
• If in doubt check with the brand owner
• Check with the Certification body
• Know your supplier
• Be sure – you are responsible
• 3 P’s – Place , Person , Price
PLEASE, DON’T KILL YOUR CUSTOMERS!
Message to the Industry
• 8,000 electrical fires per annum in UK, 30 deaths
• The number of accidents in UK is falling
but has bottomed out
• Is this a worrying trend over the last few
years? Are we as an industry satisfied
with these figures?
• Could any of this be attributed to the use
and installation of illegal counterfeit and
non-compliant products?
Blow the Whistle!
Report
Counterfeits and non-compliant
products
www.counterfeit-kills.com
And finally,
we have a Message for the
Counterfeiters!
WATCH OUT!
BEAMA’s ABOUT!
COUNTERFEIT KILLS
www.counterfeit-kills.com