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Burying Our Heads in The Online Shopping Bag - Counterfeit Goods And Their Cost On The Economy

We all like to feel like we are getting value-for-money in anything we purchase, but sometimes a bargain can leave us feeling cheaper than expected when it turns out to be a counterfeit, sub-standard imitation of the real thing. Questions are raised about the multiple perspectives involved in the operation of the movement of these illegal products and how societal roles and conforming to pressures contribute to the damage being done to individuals and the economy as a whole.

According to Retail Economics, the total value of UK retail sales in 2018 was £381bn, with an average annual growth of 15% in online sales in the same year. As the consumer moves towards online services, so too have the trading operations of suppliers of counterfeit and substandard goods who previously plied their wares from fold-up tables in marketplaces and street corners. This movement online has not only anonymised the process for the sellers of these goods, but has also served to raise questions concerning why consumers will resort to buying from unauthorised and risky suppliers.

Two researchers from the Beijing Technology and Business University have investigated the relationship between group motivation, ego and unethical behavioural intention from a broader perspective, looking at the potential driving factors for being complicit in these often- illegal activities. Their findings indicate the collective adoption of a ‘no-harm, no-foul’ mindset in which the consumer does not explicitly see the impact of their involvement in the criminal activity, and as a result, they are more likely to participate. However, many will likely be involved in the purchasing of counterfeit and sub-standard products without actually being aware of the situation. 

With additional pressures from society to conform to standards of beauty and through the perpetual bombardment of images which extol the false image of perfection via social media channels and through popular culture, it is inevitable that those within society without the resources to achieve these ideals through legitimate means are turning to alternatives to do so. Fashion and beauty trends evolve over time, as do expectations for the consumer to adapt to them, and it seems that little that can be done to alter this. However, questions need to be asked regarding the damage that can be caused by purchasing ‘knock-off’ goods online, even under the guise of ‘just saving money’.

According to the Consumer Harm Report (2018), published by the National Trading Standards (NTS) for the UK, their eCrime team uncovered potential online fraud of £59m. This work focussed specifically on several areas, including online shopping fraud. The report served to highlight the dangers faced by the consumer through fraudulent activities carried out on the world wide web. Yet, this figure merely represents visible fraud and presents only the tip of the iceberg. Reports suggest that fraud has cost the consumer approximately £14.8bn in 2014-15 alone.

Where there is a demand, inevitably, the supply will follow. Ultimately, questions need to be asked not only of the online traders and their motivations, but also of the changing moral values and societal pressures placed on people, that are potentially increasing the demand for cheaper items from dubious sources. What we can do is limit the damage by avoiding knowingly purchasing counterfeit items. By identifying fraudulent practices and subsequently reporting traders, progress can be made.

consumeradvice.scot are working in partnership with Scottish tech startup Vistalworks to bring you the very latest innovation in consumer protection technology. Their exciting new service allows you to copy and paste a URL before making an online purchase and will provide  an indication of whether the product appears to be legitimate or not. This can be found by visiting https://www.consumeradvice.scot/knowledge-centre/i-want-help-checking-goods-online/ and entering the URL.

If you believe you have been sold counterfeit or substandard products and need more advice on the matter, you can contact consumeradvice.scot on 0808 164 6000. We are open 9am-5pm, Monday-Friday. You can follow us on social media – Twitter: @advicedotscot , Instagram: @advice.scot and Facebook: www.facebook.com/advice.scot/, or get ahead by visiting out knowledge centre at www.consumeradvice.scot.

 

Last updated: 27 August 2019

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