Counterfeit Foods: Are You Eating the Real Thing?

×
Counterfeit Food
Think counterfeiting only extends to that knock-off name-brand purse or those slightly irregular DVDs you bought on the street? Think again. Everything is fair game to counterfeiters these days, from music to computer equipment to car parts.

But perhaps most frightening: The food you eat and the beverages you drink might not be the real thing.

While all counterfeiting is problematic, counterfeit food and beverages are especially tricky. The inherent health and safety risks are higher than those associated with, say, a knockoff pair of sunglasses, and they're also harder to detect once they've made their way onto store shelves. And unlike a fake purse whose handle falls off after you buy it, fake foods can hurt more than your wallet.

A Fish by Any Other Name

Charges of mislabeling items to increase the sales prices aren't new. Only last year, large retailers were targeted in a lawsuit that claimed the products they were selling as organic weren't. Tamara Ward of the Food and Drug Administration says that counterfeit food cases can occur when consumers can't easily tell one item from another (as is often the case with certain varieties of fish), or are unable to distinguish by taste the differences among types of certain foods (such as extra virgin olive oil or raw honey).

But beyond mere mislabeling is a more insidious type of food fraud: creating inferior products meant to pass as brand-name goods.

With advances in technology, a localized market and the constant push for value pricing, it's not always easy to tell what's real and what's fake.



Looks Can Be Very Deceiving

According to the Organization for Economic Cooperation and Development, the most successful food fraud occurs when the inferior item is not easily distinguishable from the real deal.

With advances in technology, it's becoming markedly more difficult to determine a counterfeit label from a real one, even in the face of anti-counterfeit security devices like holograms or tax labels. Well-designed packaging (even creating fake "brands") also helps these goods gain traction, enabling them to blend well on store shelves because they don't stand out next to their legitimate peers.

Counterfeiters will make most of their upfront investment in label-making equipment, and less investment in the inferior ingredients going into the food items. Simply put, the more they spend on the outside, the less they'll spend on the inside.

"In most cases, food fraud, or 'economically motivated adulteration,' is a pocketbook issue," Ward says, "but when ingredients are illegally substituted for what is on the label, consumers may be affected by unsuspected allergens or, in the worst case scenario, by toxic contaminants such as melamine."

From Fake Baby Formula to Watered-Down Booze

Baby formula, Scotch whisky, vodka, and premium teas are among the easiest to fake. Items that have an imprinted logo, such as many candy bars, or are visually distinctive are typically harder, as more effort and costs are required in manufacturing. Frozen foods also run a lower risk of being fake, because the additional cost of transporting them cuts into potential profits.

Anyone who has ever been disappointed by a watered-down cocktail will appreciate that premium alcohol is particularly susceptible to fraud. Varieties that are commonly used in mixed drinks are especially attractive, because the mixer will hide the taste of the poor quality underlying alcohol.

In many cases, original bottles are used, but refilled with an inferior product. Casual consumers won't be able to detect the difference among various types of nearly identical looking and smelling beverages.

Most of those counterfeiters are small-scale operators. However, there have been reports of a few large operations that include bottling equipment and printing machines, and which produce their own raw, poor-quality alcohol, which is placed in replicated bottles of premium brands. These businesses, which sometimes span international borders, are almost always linked to organized crime.

Because of the difficulty and expense of transporting large quantities of alcohol in glass containers, most counterfeiting operations are local ones, with the counterfeiters selling directly to local liquor stores or bars. The proprietors may mark up the price to such a level that, between the nearly identical bottle and price of a premium brand, it could be impossible to tell the difference. Because these batches are typically smaller than the large international shipments that are subject to customs inspection, they're often harder for officials to detect. And when the counterfeiters are caught, the small quantities of fake product make prosecution less likely, and any penalties or fines are smaller.

So scan your shopping cart with skepticism. While it may be nearly impossible to tell a fake from the real thing, the same rule of avoiding counterfeit purses applies: Use common sense, don't buy an item with a label that has spelling errors or misprinted labels, and be wary of prices that seem too low.

Customers who suspect they've bought a fake food or beverage item can contact the FDA's hotline at 888-SAFEFOOD or consumer@fda.gov.


Molly McCluskey is a regular contributor to The Motley Fool. Follow her finance and travel tweets on Twitter @MollyEMcCluskey.

Increase your money and finance knowledge from home

How much house can I afford

Home buying 101, evaluating one of your most important financial decisions.

View Course »

How to Buy a Car

How to get the best deal and buy a car with confidence.

View Course »

Add a Comment

*0 / 3000 Character Maximum

21 Comments

Filter by:
javaman16d

Chick-fil-a.

August 01 2012 at 6:24 PM Report abuse rate up rate down Reply
gordianpiusiii

Did anyone notice that the people in the photo look Chinese? That's probably because China is the number one counterfeiter in the world of just about anything you can imagine. For the most part, it's not even illegal in China to make "replicas" of brand name items. They counterfeit golf clubs, purses, coins and currency, and a whole host of other items. They're proud of it. Then there are the more heinous ones; baby formula, pet food, building materials, lead paint in toys, pharmaceuticals, etc. We should just stop doing business with China altogether. They are, after all, our enemy. However, it seems as though corporate greed has taken over common sense.

August 01 2012 at 1:15 PM Report abuse +1 rate up rate down Reply
ejljr

Why do you think Wal Green makes their capsules for headache pain look like Tylenol? Even the packaging. They want you to make the mistake by grabbing theirs. Even Wal Mart and CVS use this ploy.

August 01 2012 at 1:14 PM Report abuse +1 rate up rate down Reply
gosoaring10

I agree with MERLIN--what happened to the FDA and the FTC? Aren't they supposed to ride herd on these sorts of fraud (really they're theft)? Catch somebody doing this--THROW THE BOOK AT THEM--JAIL TIME ETC.

August 01 2012 at 12:37 PM Report abuse rate up rate down Reply
MERLIN

what ever happened to the fda, did they join the liberal progressive commys also

August 01 2012 at 12:30 PM Report abuse rate up rate down Reply
1 reply to MERLIN's comment
Sherrie

No, the FDA was evicerated by the TP Reps.

August 01 2012 at 2:34 PM Report abuse rate up rate down Reply
Elliana

this article left me with WAY more questions then answers.

August 01 2012 at 11:42 AM Report abuse +1 rate up rate down Reply
Kimberly

I HATE these scares and false reports...Here lies Steve...Died of fake bread and butter...MODERATION yall... Lots of water or ice...inbetween all the Burger King fake diet coke...

August 01 2012 at 10:32 AM Report abuse -1 rate up rate down Reply
livinggudgeon

A lot of what you eat isn't what you think anyway. Why do you think the corn industry is so huge? You would be amazed at how much of what is sold on the shelves in the supermarket contains corn, and also how much fast food meat has corn fillers...

August 01 2012 at 10:18 AM Report abuse +1 rate up rate down Reply
Susan

Another weak article. How about some actual names, labels, cities and products. This distribution of lame, useless material gets old.

August 01 2012 at 10:14 AM Report abuse +5 rate up rate down Reply
1 reply to Susan's comment
kaysings

This is pretty typical of aol's affiliates' material, and I've seen just as bad and worse elsewhere on the Internet. But this is the sort of thing that gets page views, which is really all they're after anyway.

August 01 2012 at 12:12 PM Report abuse +1 rate up rate down Reply
mclockhart

A lot of this comes from imported foods. Unfortunately, when I worked at the Journal of Commerce, I had a solution that would have protected people. It was simple and relatively cost free to the government to implement and private industry backed my idea. Problem was...democratic rep from Michigan, John Dingell, was the man that had to move this forward. He did not do that some 25 years ago and so we continue to be overrun with fake brake parts, drugs, foods, etc. Amazing.

August 01 2012 at 9:27 AM Report abuse +1 rate up rate down Reply
1 reply to mclockhart's comment
mouse

25 years ago? Still having the same problem? Several political parties have been in power over that time so it can't have anything to do with any specific political party so why hasn't this been fixed? After all that publication where you worked has 15,000 subscribers right now and no one did anything?

August 01 2012 at 9:39 AM Report abuse +1 rate up rate down Reply