Counterfeit Automotive Parts FAQ

Globalization and digitalization are two strong trends that have been influencing the automotive parts industry.

Globalization means that international supply chains are growing, and so do international transactions.

 

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Digitalization is the growth in e-commerce and online shopping. The scale of the problem is enormous, and so is its scope. Consumers can find every product category on online marketplaces, including automotive parts offered for purchase by numerous sellers.

 

How do globalization and digitalization result in fake automotive parts?

Fake automotive parts constitute a growing aftersales market. Globalization results in global transactions and global supply chains that are more vulnerable. Digitalization results in e-commerce platforms that are used by legitimate sellers alongside unscrupulous sellers that offer illegitimate products. Online listings can present fakes right next to genuine products with no way of telling which one is which. Buyers have more choices and accessibility, but also varying quality.

 

What is the scale of the fake automotive parts problem?

According to the World Trademark Review, the European Office of Intellectual Property (EUIPO) estimated that €2.2 billion is lost by legitimate parts manufacturers to counterfeit tire sales annually and €180 million each year due to the sale of counterfeit batteries.

 

What are the most faked automotive parts?

Almost any automotive part is counterfeited.

In addition to tires and batteries, other automotive parts are counterfeited, such as airbags, engine and drivetrain components like oil filters, brake pads, body parts, electrical components like lights, wheels, and windscreens.

 

What is the effect of e-commerce on the automotive parts industry?

E-commerce platforms make automotive parts accessible to buyers. With automotive parts, consumers find it difficult to distinguish between genuine and fake parts, especially with savvy counterfeiters who offer super fakes that look like the real products. When buyers cannot tell if a product is genuine or not by looking at it, they are much more likely to purchase a counterfeit.

 

 

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What are the types of non-genuine auto parts?

(1) Counterfeit parts. Designed to mislead consumers into believing they have purchased a genuine part. Counterfeits are often of sub-par quality and are associated with performance and safety issues.

(2) Gray market parts. Gray market or parallel import parts are not fakes, but they enter the territory through unauthorized channels, and therefore may not fit the territory’s specifications and conditions or may not have the car manufacturer’s warranty.

(3) Salvaged parts. Salvaged parts are removed from damaged vehicles and used as replacements. Salvaged parts may create problems because of the unknowns: their source is unknown, and it is also not clear whether or not they sustained damage in the accident or vehicle failure. The safe way to buy salvaged parts is when reconditioned by the original car manufacturer.

(4) Independent aftermarket parts. Aftermarket auto parts makers do not attempt to deceive by claiming to be produced by the carmaker. They are independent manufacturers who offer alternatives. Alternative parts should be carefully examined to verify that you get the same quality and safety as the vehicle maker’s genuine parts.

 

How do counterfeiters mislead consumers?

Counterfeiters design, package, and falsely label to intentionally mislead buyers into believing they purchase the original product.

However, imitating protected trademarks and packaging says nothing about the materials that go into the product, its quality, or its performance.

 

What are the safety risks associated with fake automotive parts?

> Counterfeit parts are not generally not made in accordance with the brand’s standards. As a result, they may not perform as well or result in a part failure.

> Automotive parts are usually connected and interact with other parts. Some parts can affect a larger vehicle system and cause system breakdowns.

> Substandard parts can lead to vehicle safety events.

For example, several original equipment manufacturers (OEMs) have tested the quality and performance of counterfeit brake components, and have demonstrated that they offer inferior performance and safety.

Who sells counterfeit automotive parts?

Fake automotive parts are good business, as evident from the sheer number of counterfeits. Many of the illicit online sellers are criminals connected to other types of criminal activities and organized crime.

 

What is the automotive industry’s reaction to fake parts?

The automotive industry recognizes the problem and has been working to fight it. The major OEM brands fight fakes with professional departments and initiatives. Governmental groups are also working with OEMs, such as the Department of Homeland Security and the Federal Trade Commission in the U.S.A. In Australia, the Federal Chamber of Automotive Industries (FCAI) launched the Genuine is Best website, and other efforts are happening around the world.

Industry-focused organizations work to curb counterfeit and gray market automotive parts. The Automotive Anti-Counterfeiting Council (A2C2) is a council of North America’s vehicle manufacturers that have agreed to work together to eliminate counterfeit automotive components that could harm U.S. consumers. They have succeeded in enacting legislation in several U.S. states, such as anti-counterfeit airbag legislation. The Motor & Equipment Manufacturers Association (MEMA) is working to address issues such as counterfeit parts on major online platforms, and the Specialty Equipment Market Association (SEMA) works on legislative measures to help combat counterfeiting.

Although the numbers of fakes are increasing, there are many successful efforts in this challenging reality. Online marketplaces, such as Amazon and eBay, have issued guidance on buying aftermarket vehicle parts, and Alibaba has announced the ban of listings offering car airbag components on two of its cross-border e-commerce platforms.

Other efforts tackle the issue in different ways. One example is the Manufacturers Against Product Piracy (Mapp) code used to verify the originality of an automotive part with the help of the One Identity platform.

 

What are the advantages of fighting counterfeits?

(1) Mitigating health and safety risks for consumers.

(2) Securing profits for legitimate brands.

(3) Protecting brand reputation and consumer trust.

(4) Supporting innovation and product R&D.

(5) Helping authorized dealers and legitimate partners to identify genuine products.

(6) Increasing consumer confidence in online marketplaces and legitimate business partners.

 

How to tackle the problem of automotive fake parts?

There is no single way to eliminate counterfeiting, but there are ways to better tackle the issue through coordinated efforts.

(1) Create protective measures with technology that enable real-time authentication and tracking.

(2) Give customers tools and information, such as the manufacture’s legal name and harmonized packaging that will indicate if a product is legitimate.

(3) Encourage original equipment manufacturers to carefully consider the pricing of service parts to discourage counterfeiters.

(4) Create consumer education and awareness content online, including knowledge regarding potential threats to their safety.

(5) Advocate for governments and consumer protection agencies to stand up to these challenges through programs, policies, and regulations.

(6) Increase online protection through the use of an online brand protection agency that will detect and eliminate counterfeits from online platforms.

What can an Wiser Market, an online brand protection agency do for my brand?

As buyers are more accessible to counterfeiters, there is a growing problem of counterfeit automotive parts. With time, counterfeiters are becoming more sophisticated and counterfeits more difficult to spot.

Wiser Market is an online brand protection agency that uses innovating technology and unique know-how to fight counterfeiters and protect your brand, your partners, and consumers across online marketplaces, eCommerce platforms and social networks.

Wiser Market’s effective online brand protection strategy defends your brand’s intellectual property, revenue, and reputation, resulting in an over 90% success rate.

 

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