Counterfeit Cosmetics

Latest news, information and statistics about counterfeit cosmetics. Data collected from police seizures, fashion industry lawyers, intellectual property lawyers, luxury business representatives and media reports.

According to an investigation into counterfeit cosmetics by the Daily Mail, a counterfeit MAC eyeliner bought on Amazon was found to have contained 46 times the acceptable level of copper in the eyeliner. The high level of copper makes the eyeliner unacceptable for use on eyes.

The counterfeit eyeliner was bought for $5.60 (£3.50) online, when the normal retail price for a MAC eyeliner is $22 (£14).

Source:  Charlotte Kemp, “The toxic trade in fake make-up: How counterfeit cosmetics containing dangerous levels of arsenic are being sold online to unsuspecting bargain hunters,” Daily Mail, September 30, 2012.

In 2011, police seized 8.9 million counterfeit goods items in France. Half of the products that were seized within the country was luxury goods items, such as clothes, sunglasses, and cosmetics. Louis Vuitton products were the most counterfeited items seized by authorities in France.

France losses up to $8.5 Billion a year to counterfeit goods.

Source:  AAP,”French luxury brands fight back against fakes,” News.com.au, May 30, 2012.

The sales of counterfeit products in Indonesia causes tax losses of up to $4.8 Billion (43.2 Trillion Indonesian Rupiahs) in 2010.

The following is the percentage of counterfeit goods that make up all sales in that category:

Product                     Counterfeit Percentage

Leather products              35.7

Software                             34.1

Automotive Parts             16.8

Electronic goods              13.7

Cigarettes                          11.5

Beverages                          8.9

Pesticides                          7.7

Cosmetics                          6.4

Drugs                                  3.5

Source: “Fake products cost RI Rp 43.2t in lost taxes,” Jakarta Post, November 5, 2011.

The Interior Ministry stated that up to 60 percent of Microsoft products in use in Russia are pirated copies. 37 percent of all clothing sales in the country are counterfeit clothing, and counterfeit cosmetics consist of between 15 and 30 percent of the total market.

The Ministry stated that most counterfeits and imported into the county, with minimal production of fake goods occurring within the country.

Source: Interfax, “Internet Cuts Down Piracy,” Moscow Times, September 2, 2011.

Law enforcement officials in Russia estimated that counterfeit cosmetics in Russia make up to 30 percent of the entire cosmetics market.

Source: “Counterfeit cosmetics: turning beauties into beasts,” RT, November 8, 2010.

Counterfeit goods sales in Russia totaled $29 Billion (910 Billion Roubles) in 2009. Counterfeit goods accounted for 6 percent of total retail sales in Russia in 2009.

In 9 of the key retail sectors of Russia, such as alcohol, shoes, tobacco and cosmetics, sales of counterfeit goods made up to 24 percent of all sales.

Source: AFP, “24% of Russia’s key retail goods fake,” Sydney Morning Herald, September 25, 2010.

Financial losses of $515 Million (4.41 Trillion Indonesian Rupiahs) occur in Indonesia every year due to the importation of counterfeit cosmetics into the country.

Fake cosmetics are the number one counterfeited product in Indonesia, with most of the counterfeit cosmetics entering the country from South Korea or China.

Source: “Bargain hunters find fake cosmetics,” Jakarta Post, September 10, 2010.

Counterfeit goods in Vietnam account for up to 90 percent of all products purchased in the country’s retail markets.

In addition, counterfeit drugs and counterfeit cosmetics consist of almost half of all sales in Vietnam.

Source: “It’s easier to buy counterfeit than real goods,” Vietnam.net, May 19, 2010.

According to a report by KPMG, the following are losses due to counterfeit goods in the United Arab Emirates.

  • Counterfeit Food and Beverage: $9.5 Million
  • Counterfeit Cigarettes: $15.49 Million
  • Counterfeit Household Products: $3.4 Million
  • Counterfeit Auto Parts: $476.8 Million
  • Counterfeit Pharmaceutical Drugs: $1.3 Million
  • Counterfeit Cosmetics: $37.7 Million

Total losses to counterfeit goods based on these products: $544.1 Million.

Source: KPMG, “Economic Impact Study : Analyzing Counterfeit Products in the United Arab Emirates,” January 2008, page 10.

In 2006, the European Union seized 1.6 Million units of counterfeit cosmetics and personal care products at its borders.

Source:  Richard Roberts, “Counterfeit goods: have frontier defences been breached?,” Cosmetic Business, August 10, 2009.

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