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?

WHAT DO WE DO?

The BEAMA Anti-Counterfeiting WG

BEAMA Anti-Counterfeiting Working Group – Members

BEAMA Anti-Counterfeiting Working Group

Raising Awareness

“Counterfeit Kills – Protect Yourself”

Sequel to “Counterfeit Kills” available on DVD and CD free of charge. Arabic and French versions also available.

BEAMA Anti-Counterfeiting Working Group

Poster issued in UK to all EDA members

Raising Awareness

BEAMA Anti-Counterfeiting Working Group

Fax Flier e-mailed to over

2000 UK Distributors

Fact Sheet distributed to over

10,000 Electrical Contractors

Raising Awareness

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 Fairtwice 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

• 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

Yiwu market China

Electric Dragon – 2010

Arriving at an illegal factory in China

Production continues during a raid

Components ready for assembly

Moulding Area – Claimed to have ISO 9001!

C

A hairdryer for temperature calibration!

C

Fakes being taken to the warehouse

BEAMA Warehouse – Wenzhou

DESTRUCTION – Wenzhou

DESTRUCTION – Wenzhou

BEAMA Anti-Counterfeiting Working Group

Projects• 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 • Baby Milk

• Car Spares

• Aircraft Spares

• Cosmetics

• Cement

• Pharmaceuticals

• Electrical Products

• CD’s

• DVD’s

• Designer Clothes

• Handbags

• Watches

• Software

• Identities

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

• 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 – Eaton|MEM

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 Accessoriesand Lighting products found

• Some Products found which were copies ofgenuine 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!

•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

Electric Bulldog – UK

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/orIMPRISONMENT 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 andMAXIMUM 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 theCounterfeiters!

WATCH OUT!

BEAMA’s ABOUT!

COUNTERFEIT KILLS

www.counterfeit-kills.com