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Experts analyze a global problem that affects the health and safety of millions: counterfeiting in e-commerce

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On Wednesday, January 15, 2025, the World Customs Organization (WCO) held the second Symposium on the "Eliminating Counterfeiting in Electronic Commerce«. This event placed special emphasis on counterfeit medicines and medical devices, addressing the worrying rise of these illicit practices that represent a serious threat to public health and the safety of millions of people.

Supported by the Customs Cooperation Fund of Japan (CCF/Japan), the event took place in a hybrid format, registering more than 1.000 people, a considerably higher number than the 350 registered in 2024. This increase in participants reflects the growing concern about the problem of counterfeiting in e-commerce and its impact worldwide.

Why are these discussions necessary? Following a series of procedures, the WCO presented, in June 2024, during the first Symposium, a comprehensive analysis on illicit goods based on data collected mainly from Operation STOP III and seizures made by WCO members as well as other stakeholders. This event offered an opportunity to better understand global trends in the fight against illicit trade and their impact on international trade.

Following this, the second event was organised to further raise awareness among customs officials and the general public about the threat of counterfeiting through e-commerce.

Here are the most notable reflections and contributions.

Increased awareness

Maurice Emiola Adéfalu, responsible for the WCO's Intellectual Property Rights, Health and Safety Programme, welcomed and invited James McColm, Acting Deputy Director for Enforcement and Compliance, to open the event. During his speech, McColm explained the significant challenges facing trade due to the growth of small shipments. In this context, one of the central issues is to continue raising awareness among both enforcement officers and the general public about the threats of smuggling arising from e-commerce. He emphasized that this objective is in line with the WCO Strategic Plan, to facilitate legitimate trade and protect society.

About, Sahoko Shiga, Counsellor at the International Cooperation Division of the Customs and Tariff Bureau of the Ministry of Finance of Japan, remarked: “For the WCO’s trade-oriented initiatives to be successful, cooperation with the general public is as essential as the efforts of customs authorities.” She highlighted the WCO initiative, noting its focus on trade, an emerging challenge facing customs today.

Academia and public-private sectors 

The first session began with the opening speech entitled «The academic world's perspective on the rise of substandard, falsified and adulterated medicines sold through e-commerce", pronounced by Saifuddin Ahmed, MBBS, PhD, Professor in the Department of Population, Family, and Global Health at the Johns Hopkins Bloomberg School of Public Health.

The academic highlighted the growing threat of counterfeit medicines in the global supply chain, recognised as a public danger since 1985 by the WHO. These drugs, which often contain inactive or toxic ingredients, have serious adverse effects and are responsible for almost a million deaths a year. The market value of these fraudulent products ranges from 200 to 431 billion annually.

The problem has worsened with the rise of e-commerce, as counterfeit drugs have been found on every continent, affecting both countries with strict regulation and those with limited oversight. In the United States, more than 100.000 deaths annually are linked to counterfeit drugs. Although low- and middle-income countries are the most affected due to lack of control, high-income countries are not exempt, especially due to the availability of medicines online.

Purchasing medicines over the Internet, although often not recognized as risky, remains a common practice. Despite the lack of awareness about the associated dangers, factors such as convenience and competitive pricing make many people opt to purchase medicines online. The COVID-19 pandemic has exacerbated this trend, and although the crisis has subsided, trust in online shopping remains. “This underscores the need for increased surveillance of illegal trade to protect vulnerable populations,” the Johns Hopkins University scholar stressed.

Then the 2 session addressed the growing threat of counterfeit, substandard medicines and medical devices sold online, which pose a significant risk to consumer safety. Moderated by Astrid Heiter, Technical Attaché of the Compliance and Facilitation Directorate of the WCO, the round table brought together experts from the public and private sector to analyse the fight against transnational crime and ensure security in the supply chain.

The panel included the participation of figures from the international arena: Paul Barefoot, Superintendent of the Australian Border Force's Trade Defence Force, led a team dedicated to combating organised crime and customs-related tax evasion. Evita Van Damme, of the European Federation of Pharmaceutical Industries, coordinated efforts to improve the detection of counterfeit medicines in the European Union. Christophe Pereira, from La Post Group, contributed its experience in supply chain processes and international standards. Finally, Alessandro NicolisAmazon led external relations in the EU, with a focus on trust and security in global trade.

Evita Van Damme, of the European Federation of Pharmaceutical Industries, has warned of the serious threat posed by underrated, counterfeit medicines and medical devices sold online to consumer safety and public health. The sale of counterfeit products through online platforms puts the lives of patients at risk, who are unaware that they are consuming fake medicines, which can cause fatal consequences. This problem affects a wide range of products, from treatments for common diseases to serious illnesses such as cancer and malaria.

Statistics indicate that counterfeit medicines are responsible for thousands of deaths each year, including 72,000 children who die from pneumonia after receiving counterfeit medicines. In addition, she said that health systems are overwhelmed by having to treat the damage caused by these products. Lack of access to regulated medicines and increasing sales on social networks and illegal online pharmacies are factors that contribute to this problem. According to the WHO, more than 50% of online sales of pharmaceutical products are counterfeit, and the difficulty in detecting these products worsens the situation. “It is urgent to take measures to protect consumers,” she said.

Paul Barefoot, Superintendent of the Australian Border Force Trade Defence Force, said that legitimate supply chains in Australia have been infiltrated by organised crime, with counterfeit products and pharmaceuticals reaching legitimate pharmacies and chemists. He attributes this in part to vulnerabilities that emerged during the COVID-19 pandemic, during which those responsible for counterfeit products demonstrated rapid adaptation to circumstances, taking advantage of weaknesses in supply chains. This has led to an escalation of criminal activity, with consumers, in their desperation to access medicines, risking obtaining harmful products. Barefoot highlighted the importance of a smart response and collaboration between multiple sectors, such as transport, the pharmaceutical industry and the media, to tackle this problem.

Alessandro Nicolis, Amazon representative agrees in highlighting the growing scale of piracy and counterfeiting, which represents 2,5% of global trade, equivalent to more than 400 million euros, a value comparable to the GDP of Belgium. “This phenomenon greatly affects customer confidence, leading to the loss of business for Amazon, which actively fights against this practice.” Regarding medicines in the European Union, he said that Amazon allows the sale of non-prescription medicines only through third-party sellers in Germany, under strict regulations. “Sellers must comply with the European regulations on counterfeit pharmaceutical products, officially register and display the EU logo.” In addition, Amazon facilitates a process for sellers, authorities and customers to report counterfeit medicines, which are rigorously investigated.

Christophe Pereira, The representative of La Poste explained that the company is a private entity with public capital, designated by the French State to operate within the Universal Postal Union (UPU). He referred to the fight against product counterfeiting, stressing that La Poste has been working closely with French customs authorities to detect and prevent the arrival of counterfeit medicines. Currently, La Poste “handles between 100,000 and 120,000 imported packages daily, of which approximately 20,000 are inspected annually by customs authorities. Of these, about two thirds contain counterfeit products or illicit medicines, with 80% of shipments originating in Asia,” he said.

How can we help protect consumers?

«We can all cooperate»

This was the reflection shared by the panellists when discussing how to contribute to protecting consumers. Referring to this joint effort, they mentioned platforms, sellers and actors in the supply chain, in order to help consumers better identify these types of illicit products.

In this regard, the importance of international cooperation in combating the trade in counterfeit and dangerous products, such as medicines and medical devices, was highlighted. The need for collaboration between government agencies, law enforcement agencies, companies and trading platforms to improve detection and mitigate risks to the health and safety of consumers was highlighted.

In addition, the value of sharing information, data and best practices throughout the supply chain was highlighted. Public-private cooperation and the adoption of new technologies were considered essential, especially in light of the increase in online trading by criminal organisations.

The second WCO seminar thus concluded with a call to strengthen joint efforts, raise public awareness and advance detection capabilities, in order to contribute to a healthier and safer society.

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Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.

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