The increasing risk of counterfeit car parts

 

Using counterfeit products is always dangerous, but especially in industries where the risks of personal injury and significant property damage are high. Add to that the readily available supply of fake products and what do you get?

 

The global trade of counterfeit car parts.

 

 

The market for fake car parts

As we have outlined in the third instalment of our Counterfeits in different industries series, fake car parts and other infringing automotive brand merchandise provide fertile grounds for fraudulent manufacturers and sellers.

 

This strategically important sector is especially vulnerable to fake products due to its high investment needs yielding proportionately low returns. For honest sellers, that is. Fraudsters can skip all the costs associated with R&D, IP rights and safety issues. All they have to do is create a part that resembles the original and pocket the extraordinarily high profits.

 

Out of all the infringing product categories associated with the automotive industry, fake car parts are the most dangerous as they have the biggest potential to cause or contribute to significant injuries and even death.

 

According to a recent study of the European Union Intellectual Property Office (EUIPO), the overwhelming majority (94%) of all fake car parts originate from China. Hong Kong is responsible for 5%, while Malaysia, Pakistan, Turkey, Ukraine, Singapore, South Korea and Vietnam all contribute to the remaining 1%.

 

Check out how globaleyez contributed to taking down fake car parts producers in China!

 

The study highlights the results of Operation Spare-Off, a major action launched and coordinated by EUIPO to collect data, identify sources and logistic routes of counterfeits, improve cooperation between private and public sectors, enhance the exchange of relevant intelligence and raise public awareness.

 

Air bags, filters, lights, spark plugs, wheel rims and even seatbelts can be found amongst the most often counterfeited car parts. The EUIPO’s report sorts these items as body/crash parts like brake pads, safety parts like alloy wheels, service parts like radiators and pumps, diagnostic software tools and finally, branded merchandise including key rings, towels, wheel covers and floor mats.

 

 

Screenshot of a presumably fake radiator grill product listing on ebay.de

 

 

Although car parts represent “only” 7% of all counterfeit goods seized by the police in EU member states, they certainly are the most valuable items taken. And amongst the most dangerous.

 

Take brake pads, for instance. Instead of the usual materials like metal, ceramics, rubber, steel wool and wires, fake brake pads may contain any material, including compressed grass that’s painted to look like the real deal. Let’s not imagine the consequences of using compressed grass brake pads instead of ceramic ones.

 

 

The market in numbers

Unfortunately, it seems that the European market for fake car parts is growing, and researchers in the US have come to the same conclusions. Between 2009 and 2019, the US Customs and Border Protection saw an increase of 86% of fake car parts seized at the borders.

 

The global market of counterfeit automotive products is valued at $12 billion annually, and counting. $3 billion of that is tied to fake sales in the US.

 

The rise of online trade is certainly making it easier for fraudsters to get customers. While pre-internet, counterfeiters had to rely on dodgy repair shops and other professional establishments to sell their illicit products, today, thanks to online marketplaces, unsuspecting consumers can freely purchase fake car parts in a heartbeat.

 

Indeed, the online sales of car parts is estimated to be around $19 billion in the US alone. According to the EUIPO’s research, currently 60% of all seized dangerous fake products are destined for online sales in the EU. No wonder: this sales channel allows for a wider reach of customers paired with a low risk of detection and conveniently small shipments.

 

 

Related articles

Counterfeits in the automotive industry

 

Tracking down fake car parts manufacturers

 

Besides fake parts, carhacking is also a real danger

 

 

How to recognise fake car parts

Depending on its quality, the difficulty of recognising a counterfeit product can range from very easy to extremely hard. This is especially true if you’re not an expert of the purchased product category.

 

Read our tutorial on recognising fake products!

 

This means that anybody apart from car mechanics may have a hard time determining whether the radiator grills, airbags, or any other car parts they purchased are the real thing. Nevertheless, there are some pointers we can give to safety conscious shoppers.

 

• Take a look at the packaging. If it seems to be damaged, incomplete, poorly wrapped or of bad quality in general, you may have a counterfeit situation on your hands.
• The same is true for shipping labels. Check if it features all the necessary information, including contact information, product description, logos, etc. Insufficient information and typos are definitely a bad sign.
• Does the package contain the required safety instructions and warranty documents? If these are missing, you may have purchased a fake.
• Check the product barcode, as well as brand name, product name, serial number and anything that should be visibly displayed. Are they well legible? Do they have any spelling mistakes?
• Compare the spare part to the original you have at home, or to pictures on the brand’s website. Does it have the same appearance, including material, colour, display of brand name and logo?

 

Sometimes it’s even possible to tell a fake from the product listing appearing on an online marketplace. For example, an unbelievably good price is often a telltale sign that you’re dealing with a counterfeit. Similarly, a brand name/logo appearing in the description but missing from the product picture may also hint at a fake product.

 

 

Screenshot of a presumably fake headlight product listing on ebay.de

 

 

Online brand protection against fake car parts

While fraudulent car parts can have a devastating effect on your brand and customers, luckily, you’re not alone in the fight against them. globaleyez has a long track record of working with high profile clients in the automotive industry.

 

Our marketplace monitoring service detects potentially IP infringing listings on over 150 online marketplaces worldwide. Thanks to versatile filters we built into our in-house software traxster, we can quickly discard authorised listings and focus our attention on suspicious ones.

 

A round of image monitoring catches stray offers/ads featuring your copyrighted pictures or imitated versions of them appearing outside of regular marketplaces.

 

 

Screenshot of a presumably fake tire pressure sensor product listing on ebay.de

 

 

With a test purchase, we can learn crucial information about the origins of a product as well as its seller. Moreover, thanks to careful documentation, our findings are admissible in court and thus may come in handy should you take the fraudsters to court.

 

Finally, we offer to enforce your rights and ensure the removal of the discovered IP infringing content from the internet.

 

 

Conclusion

The sale of fake car parts is on the rise, creating potentially fatal danger for unsuspecting drivers - and your brand’s reputation.

 

Don’t let fraudsters rob you of your revenue and your carefully crafted brand image! Contact us now and let’s set up an effective online brand protection strategy.