Non-compliant electrical product counterfeiting

The entire Australian electrical industry should be involved in the fight against the importation of sub-standard, non-compliant electrical product, often referred to as 'counterfeiting', says major electrical equipment manufacturer Schneider Electric. With a substantial financial and human resource investment into the Australian electrical industry, Schneider is proactive in helping to maintain the safety of the Australian public and electrical personnel as well as the industry's commercial stability.

Multiple risks

It is obvious to imagine the impact of fake products on all market factors in terms of credibility, reliability and image. But the major risk remains undeniably quality. Indeed, as copies do not comply with international standards and bypass quality management controls, they expose everybody to serious threats:

• Health and safety hazards
• Installation damages or loss
• No services, no warranty, no insurance

Moreover, all businesses can face civil and criminal liability risks because we are all responsible for what we buy and sell.

Safety cannot be imitated

In the electrical field, quality is not a luxury. In an installation, each electrical component has a vital function. When a component must operate for protection, control or supervision, it has to work immediately and with 100% reliability. Copies are generally made of cheap and unsafe material such as flammable plastics and poorly plated conductors. The companies who manufacture the copies are renowned for reducing production costs by not respecting quality and safety standards constraints that are routinely found in quality electrical fittings. They also generally imitate the external aspects of a quality product but do not have the know-how for the operating technology.

The fight against counterfeiting is one of the strategic axes of Schneider Electric, which has dedicated teams around the world whose mission is to enforce this strategic orientation to local operations. Every endeavour is made to prevent, root out and eliminate counterfeits by taking the following actions:

• Protection of products by registering trademarks, patents and designs.
• Market monitoring to detect and track the copies.
• Enforcement of strict policy with supply partners.
• Cooperation with relevant government authorities, industry associations and professional organisations to develop and enforce laws, regulations and standards.
• Enforcement of industrial property rights by taking legal action.
• Implementation of communication campaigns into industry to raise awareness.
• Development of product authentication systems.

Economic impact

Counterfeit copiers do not pay product development or safety compliance costs, proper wages or taxes, which in turn leads to:

• Reduced profit for legitimate companies, lower wages, lost jobs and less market growth.
• Deterioration of revenues for governments, unemployment costs, hence less funds for other social priorities or developments.

Everyone in the electrical industry is an essential player in this fight. All can easily adopt a responsible attitude by using some simple tips. These include:

• Avoiding products with no brand.
• Purchasing from authorised distributors or manufacturers.
• Watching for products with unusual trademarks.
• Buying only products with their original packaging and being cautious of packaging with blurred marking.
• Checking to ensure only certified electrical products are acquired and installed.
• Beware of prices that are 'too good to be true'.