On Jan. 30, the U.S. Government Accountability Office issued a report on the threat of counterfeit products to consumers.[1] Among other things, the report highlighted the prevalence of counterfeit cosmetics on popular e-commerce websites such as Amazon.com Inc. and eBay Inc., noting that 13 out of 13 samples purchased from third-party sellers with exceptional approval ratings were fake.[2]
In the age of e-commerce, counterfeit cosmetics present a growing challenge — not only do they pose significant health risks to consumers, but they raise serious legal concerns for brand manufacturers, distributors and retailers.
A Growing Problem
It is no secret that personal care is big business. According to a report commissioned by the Personal Care Products Council and prepared by PricewaterhouseCoopers, the U.S. personal care industry — which encompasses color cosmetics, perfumes, moisturizers, shampoos, hair color and deodorants — was alone responsible for $236.9 billion in gross domestic product in 2013.[3]
As of January 2018, individual spending on personal care products was forecast to grow at an annual compounded rate of four percent between 2018 and 2022.[4] Yet, as cosmetics sales have steadily increased, so too have sales of counterfeit cosmetics.[5]
To read the full text of this article by Duane Morris attorney Kelly Bonner, please visit the Duane Morris website.