Falcon Invoice Discounting: Unlock Your Business Potential
Sw Mi Enviro Health Assoc Fall Conf 101609
1. Food Fraud 101: The Crime of the 21 st Century Sandra J. Enness, MA Anti-Counterfeiting and Product Protection Program (A-CAPPP) School of Criminal Justice Michigan State University Southwest Michigan Environmental Health Association Fall Seminar October 16, 2009
7. Defining Counterfeiting Terms (Source: Mace, R. (2008). Food Crime and Security: Corporate and Regulatory Response to Food Adulteration, Fraud, and Safety) ACT DEFINITION EXPLOITED WEAKNESS Adulteration and Tampering Deliberate contamination or change of ingredients or components to cause specific injury Product and Package Authentication/Integrity Brand Integrity Up-labeling and Mislabeling Deliberate misrepresentation of product of something it is not Packaging/Presentation Consumer Knowledge/Protection Certification Integrity Product Substitution or Repackaging Substitution of similar (generally inferior) product in another brand’s packaging Packaging/Manufacturing Controls Consumer Knowledge/Protection Brand Integrity Ingredient Substitution Unannounced introduction or substitution of inferior product Labeling/Packaging Consumer Knowledge/Perception Brand Integrity Expiry Fraud Changing labels to obscure proper expiration of sales or use date Labeling/Packaging Consumer Knowledge/Perception
20. Top Counterfeit Food Products According to 2007 Organisation for Economic Co-operation and Development (OECD) report, some of the most faked food and drink items include: The OECD report found that alcohol products are the prime targets for counterfeiters in the drinks sector, both because of their brand value and the high tax and excise component of the final price. (Source: Organisation for Economic Co-operation and Development. (2007). The Economic Impact of Counterfeiting and Piracy . June 4) Kiwis Milk Powder Butter Baby Food Instant Coffee Alcohol Drinks Confectionary Hi-breed corn seeds
26. The Food Continuum Economic Threat Public Health Threat Unintentional Intentional (Source: Spink, J. (2006). The Counterfeit Food and Beverage Threat, Association of Food and Drug Officials (AFDO), Annual Meeting)
27. Food Fraud and Impact on Public Health Health Threat Scenario: Soda Pop Adulteration Counterfeiters substitute a liquid for the corn syrup in the product. The liquid substitute is a sweet-tasting product that could easily be substituted for more expensive syrups used in drugs, food, and other products.
28. Food Fraud and Impact on Public Health Health Threat Scenario: Soda Pop Adulteration The counterfeit syrup passes through three trading companies on three continents. Not one company tests the product. Certificates are falsified for purity and shipment, eliminating the name of the manufacturer and previous owner.
29. Food Fraud and Impact on Public Health Health Threat Scenario: Soda Pop Adulteration Traders buy the product without knowing where it came from/who made it. Could this really happen? What burdens would be placed on public health from such an event?
30. Food Fraud and Impact on Public Health Could this really happen???? It did happen; however, the adulterated product was cough syrup. Diethylene glycol was intentionally substituted for glycerin in cough syrup. The adulterated ingredient traveled from the Yangtze Delta, Beijing to Barcelona, Spain and finally to Panama. ( Source: Bogdanich and Hooker. (2007). From China to Panama, a Trail of Poisoned Medicine. NYTimes)
31. Food Fraud and Impact on Public Health 46 barrels of “syrup” implicated in the matter. Panamanian health officials began a nationwide campaign to confiscate the cough syrup. 1155 bottles of 6774 authorities retrieved were contaminated. Over 350 confirmed deaths as the result of consuming cough syrup – possibly hundreds more but victims were buried before cause was known. ( Source: Bogdanich and Hooker. (2007). From China to Panama, a Trail of Poisoned Medicine. NYTimes)
36. Big Question How do we get consumers and suppliers to participate in the authentication process and NOT desire illicit/illegitimate products at significant cost reductions – particularly in this struggling economy?
37. Multidisciplinary Research Partners Anti-Counterfeit Activities Political Science Social Anthropology IPR Law Consumer Behavior Retailing Info Technology Public Health Forensic Science International Trade Marketing Medicine DO, DVM, MD Food Science Nursing Pharmacology Engineering Pharmacy
38. For additional educational opportunities in this subject area, visit A-CAPPP online www.a-cappp.msu.edu Graduate Degree Credits Certificate Credits Lifelong Education Credits Non-Credit Courses/Seminars/Webinars
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Hinweis der Redaktion
Adulterator – entity has a legitimate right to produce a product but some component of the finished product is fraudulent. melamine in pet food (a human decision to defraud) Tamperer – could be where the product is used and returned, changing the expiration dates on products, uplabeling an inferior product to look like a name brand Over-Runs – this is a manufacturing problem… after the legit line is run, more is ran and goes out the back door Thief – steals product and passes it off as legitimate in the supply Diversion – this is selling a product outside of its intended market. Not explicitly illegal but usually it is violating a contractual distribution agreement. Simulations – this is where the logo or product design is created to be “like” but not “exactly like” the branded product. Counterfeiter – this is where all aspects of the product and package are fraudulent. These people are not crack dealers and stereotypical low-life. They are your neighbors, your family, people who are really a lot like me and you.
Like Hiedler’s Balance Theory in Persuasion, have to have positive “feelings” moving through all three “partners” for the crime to occur. Less than 1% of product entering the US undergoes inspection so the opportunity certainly exists.
NEC is an electronics company with brand links to a network of more than 50 electronics factories in China. The products were pirated and even developed their own range of consumer electronic products (from home entertainment systems to MP3 players) with full coordination of manufacturing and distribution of products, collecting all the proceeds. The real NEC even received complaints about products – which were found to be generally good in quality – on products that they did not make or warranty. The counterfeiters required factories doing business with them to pay royalties for “licensed” products and issued official-looking warranty and service documents (Lague 2006)
The prevention, intervention, and response will turn our thinking from where will the next melamine event take place to what will be the next melamine event – the next time could be worse
The prevention, intervention, and response will turn our thinking from where will the next melamine event take place to what will be the next melamine event – the next time could be worse
Public Health threats from food fraud is through Negligence not intent. If there is intent to harm, then the event is a Food Defense event. Fraud is usually economically motivated to offer an inferior product at top costs to the victim/consumer. Melamine in the pet food and baby formula can be argued both ways. There was an intent for economic gain, not an intent on pets and infants dying. Shipping known contaminated peanut butter paste like PCA did was intentional in many people’s opinions though it was certainly economically motivated. The line is fine between intentional an unintentional.
The prevention, intervention, and response will turn our thinking from where will the next melamine event take place to what will be the next melamine event – the next time could be worse
The prevention, intervention, and response will turn our thinking from where will the next melamine event take place to what will be the next melamine event – the next time could be worse