Counterfeiting Remains a Threat to Businessmen, Consumers

Author: 
K.S. Ramkumar, Arab News
Publication Date: 
Thu, 2004-06-03 03:00

JEDDAH, 3 June 2004 — Counterfeiting remains big business in the Kingdom despite efforts to curb the trade ahead of Saudi Arabia’s entry into the World Trade Organization.

Local importers, agents, distributors and dealers make no secret of the availability of counterfeit products, whether automobile parts, electronic products or computer software.

Fake parts pose a major safety threat to consumers, as they are often produced from substandard materials that don’t hold up or perform like genuine parts.

Local businessmen recall a number of instances where counterfeit auto parts like brake pads or spark plugs have failed at the most inopportune moments, endangering not only passengers of the vehicle itself but also other motorists.

The Jeddah Chamber of Commerce & Industry and other chambers of the Kingdom have been addressing the issue of counterfeiting. “We’ve been addressing the problem in every business forum, and together with the private sector and with the cooperation of the Ministry of Commerce, have initiated legal measures,” a JCCI official said. “We continue to deal with the problem and hope to tackle the problem effectively.”

The best protection from counterfeit parts is to buy from authorized distributors or retailers, said JCCI Secretary-General Muhammad Abdullah Al-Sharif.

According to the latest statistics, counterfeit parts now make up 20 percent of spare parts available in the Kingdom and elsewhere in the Middle East. Last year, customs officials and police seized $1 million worth of GM branded counterfeit parts in the Kingdom and the United Arab Emirates alone, according to a company spokesman.

“The profusion of counterfeit auto parts in the region is a serious threat to manufacturers, retailers and consumers alike,” he said. “Counterfeiters are becoming increasingly savvy, pricing products just below genuine parts and utilizing sophisticated packaging and labeling to make them less noticeable, which makes it increasingly difficult for authorities to spot the fakes,” he added.

Imitation parts may be cheaper, but they can cost consumers a great deal of money and anxiety in the long run. Fakes typically don’t last as long as genuine parts and can lead to other mechanical problems and system breakdowns, businessmen say.

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