In the CPG industry, the term consumer product fraud refers to economic adulteration and counterfeiting.
Economic adulteration is defined as the intentional fraudulent modification of finished product or ingredient for economic gain through methods such as dilution with a lesser value ingredient, concealment of damage or contamination, mislabeling of a product or ingredient, substitution of a lesser value ingredient or failing to disclose required product information.
Counterfeiting is defined as the unauthorized representation of a registered trademark carried on goods similar to goods for which the trademark is registered, with a view to deceiving the purchaser into believing that he or she is buying the original goods.
Although fraud is not a top of mind issue for many consumers in most advanced markets, GMA is working with its members to manage against the risk of fraud within the supply chain to ensure the safety and quality products used by consumers.
As part of this effort, GMA and its Science and Education Foundation recently partnered with A.T. Kearney to study consumer product fraud in the CPG industry. The study provides strategic and tactical recommendations for mitigating the risks posed by fraud and for advancing public-private partnerships to monitor and address threats.
Download the full report: Consumer Product Fraud: Deterrence and Detection