What is a knock-off? It is essentially an unauthorised imitation or copy of a product, typically well-known or expensive. In recent days, a local footwear manufacturer has fallen victim to counterfeiters.

Blue Label Sandals, a renowned Samoan footwear brand is currently facing a counterfeit crisis after a Chinese company allegedly copied its packaging to mislead consumers. The knock-off product has copied the company’s logo that goes with the product and in one supermarket, it was discovered that the knock-offs are mixed with the genuine product on the shelf.

This is an imminent danger that needs to be addressed now because knock-offs or counterfeited items harm the local businesses and manufacturers and it is part of an organised crime racquet. Yes, crime. It is part of a black market system where the knock-offs that are manufactured at lower prices are sold at almost the same price as the originals. It is more harmful when the knock-off targets local products, just like Blue Label.

Ministry of Commerce, Industry and Labour says they receive information regarding counterfeit goods through "either inspections or complaints." The Ministry emphasised that once a complaint is received, it is assigned to the relevant divisions for investigation.

"It is important for any complainant who seeks the assistance of the Ministry to provide full details and evidence of the counterfeit products and the identity of the person or company manufacturing or selling such counterfeit products to assist the Ministry in its investigation and any resultant action."

The Ministry urged consumers and businesses to remain vigilant and report suspected counterfeit products to protect local industries and maintain consumer trust. Is this good enough to protect our local manufacturers who are being hit by counterfeiters?

The Blue Label situation suggests that the local market is open to exploitation and that there could be other products that are counterfeit and passed off as the original. If the control by authorities like MCIL and the Ministry of Customs is not good enough, knock-offs could be replacing things people consume as well. There are documented cases of rice, coffee and even meat being substituted with plastic. Cigarettes and alcohol have also been targeted.

This is a stark reminder that narcotics are not the only contraband sneaking into the country. This issue has to be looked at seriously otherwise local companies like Blue Label will continue to be victimised by counterfeiting rings.

A key reason society suffers from the presence of counterfeiting is the lost potential tax revenue. A group of people working within a sector of organised crime such as counterfeiting is extremely unlikely to declare earnings of their illegal enterprise to the government. MCR will definitely be concerned about those not declaring their true income and counterfeit products are one way of dodging taxes,

The amount of sales tax that the world’s nations lost to counterfeiting in 2022 was $171 billion. This is money that could be going into hospitals, roads, and schools in order to keep citizens healthy, facilitate economic growth in a country, and promote education and future innovation, but it instead finds itself in the hands of criminal organisations.

Another effect of counterfeit goods is that consumers unknowingly support criminal enterprises. Organised criminal groups very rarely operate in isolation, successful ones typically have the support of other groups providing an array of illegal services. 

Expansive criminal networks are formed that offer numerous services and products illegally, helping to uphold and protect interconnected criminality worldwide. Counterfeiting especially has a close connection to other forms of criminality, in large part due to the organisation and network support required to sustain these operations.

It's also interesting to note that it’s not only brand owners that are suffering. Counterfeit sales sidestep taxes. This means governments are losing out on significant revenues which will have a knock-on effect on society.