With criminals increasingly targeting the food industry and shopper interest in ‘ethical’ goods on the rise, fake Fairtrade products could be the next big food fraud scandal waiting to happen, Europol has warned.
In a report on counterfeiting published this week, the European law enforcement agency said fraudsters were looking to target everyday goods including food and drink, and highlighted Fairtrade and organic goods as risk areas.
Fake organic goods were already a growing problem for the food industry, Europol said, warning that other certification labels - specifically Fairtrade - could see similar issues in the future.
“In 2013, Fairtrade product sales reached £1.5bn in the UK alone, reflecting the growing willingness of consumers to pay an ethical price for goods,” it said. “The certification label can be easily replicated and affixed to products by experienced counterfeiters who want to sell products at higher retail prices and therefore it may be targeted increasingly.”
The Fairtrade Foundation stressed it had robust supply chain controls in place - including a 15-strong product integrity and mark management team - to ensure the authenticity of Fairtrade-certified goods.
David Meller, Fairtrade director of product integrity, added the Foundation had “an active campaigner base” that was acutely aware of who offered legitimate Fairtrade products. “They alert us if they see companies claiming to be Fairtrade when they are not - and we take all such allegations extremely seriously.”
Where goods were sold fraudulently, this more commonly involved the term “fair trade” rather than the actual Fairtrade Foundation brand, he added.
Meller also challenged Europol’s assertion that Fairtrade goods were especially attractive to fraudsters because they commanded a retail premium. “It’s not true to say that Fairtrade products are always more expensive than non-Fairtrade, and where they are it is often only by a few pence,” he said.
In its report, Europol warned counterfeiters were increasingly interested in everyday goods - including food and drink. In the past, counterfeiting efforts overwhelmingly involved fake luxury goods or dodgy pharmaceuticals.
Europol also said while China remained the biggest source of counterfeit products coming to Europe, more and more fakes were being produced inside the EU and neighbouring countries.
For food and drink specifically, Turkey and Egypt were responsible for a large share of counterfeit products, it added.
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