Bogus cosmetics, foods face crackdown

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Bogus cosmetics, foods face crackdown
By Petchanet Pratruangkrai
The Nation
Published on November 2, 2010

BANGKOK: -- The government has vowed to crack down on counterfeit cosmetics and foods after finding that the sale of such products is widespread in the Kingdom, creating a health hazard as well as major losses for the economy.

Deputy Commerce Minister Alongkorn Ponlaboot said the ministry and concerned government agencies would join forces with private enterprises to suppress the dis�tribution and manufacture of counterfeit cosmetics.

"Many fake cosmetic products have been found, and the trend is increasing gradually, as they have high value and many brandname goods are popular among consumers," he said, adding that buyers should be concerned not only with low prices, but with their health.

The Intellectual Property Department reported 74 cases of counterfeit cosmetics in the first 10 months of this year creating a loss of Bt65.47 million to the industry, and 152,285 items were seized. Every kind of brandname cosmetics was copied including creams, face powder, eye shadow, brushon, perfume, and lipstick.

Also, 437,147 fake food and other essential products were seized, worth Bt5.5 million in losses to legitimate industry. These goods included alcohol, seasoning sauce, coffee, dishwashing liquid, toothpaste, and beverages.

The government found that fake products are being sold in markets, shopping malls, convenience stores, servicestation shops, and border shopping areas.

The government will suppress not just the distribution of counterfeit cosmetics, but also trademark violations. The sale of fake cosmetics not only costs the country billions of baht a year but adversely affects consumers' health, Alongkorn warned.

Besides taking the violators to the court, the government will investi�gate suspect company's balance sheets and tariff payments to see whether they have breached any laws.

Alongkorn said the government would also ask for those countries that are sources of counterfeit products to shut down bogus manufacturers urgently.

He said most fake cosmetics were produced in other countries and imported into Thailand. The counterfeiters copied every aspect of the products, including packaging and trademarks. The fake products are much cheaper than the original products.

Mala Tangprasert, managing director of Selective Trademark Union (Thailand), a distributor of brandname goods, said trademark owners not only lost revenue because of fake goods, but suffered damage to their companies' image.

"Normally, fake products are sold at only 30 per cent of the real products' prices, while brandname goods are subject to 40percent import tariffs and 7 per cent VAT, making them even more expensive," she pointed out.

Consumers should be cautious when buying cosmetics as counterfeit goods can cause health problems, Mala said.