Contractors at risk of using counterfeit electrical products
3 minute read
Counterfeiting of electrical products is a serious and growing issue in Canada and around the world.
A counterfeit product is one that uses the trademark, service mark, or copyright of another product without authorization, and with the intention of deceiving prospective customers into believing the product is genuine. Counterfeit electrical products can present serious health and safety risks to consumers and to the electrical industry as a whole. These products can overheat or cause short circuits, leading to fires, shocks, or explosions that can cost people their lives and produce considerable property damage.
Risks you may face
With each project, contractors face risks when installing unfamiliar materials. When they are responsible for sourcing products, much of this risk is understood by the contractor.
However, as clients begin sourcing their own materials directly from suppliers, contractors are faced with several new risks:
Installing materials that could be uncertified for use in Canada (this is becoming more prevalent with online and offshore purchasing).
Being asked to install products that may be unfamiliar to the contractor (products that are not part of typical project specifications).
Time plays a key role as well; clients are increasingly demanding work be performed within a tight timeframe, yet contractors have no control over the delivery of parts sourced by the customer.
Risk factors are even greater when you consider maintenance and warranty issues. When products are purchased by a client and the system becomes inoperable because of a faulty product, the question still remains, who is ultimately liable and held accountable? Many customers are placing the onus on contractors to uphold warranties and repair/replace faulty products.
How to spot a potential counterfeit product
First and foremost, the best way to avoid counterfeit electrical products is to purchase products from the manufacturer’s authorized distributor or resellers. Counterfeit products are often less expensive than legitimate products because the manufacturers cut corners. There is a higher risk of counterfeits if you can’t trace the path of commerce to the original manufacturer.
You should also scrutinize labels and packaging for certification marks and suspicious additional labeling not applied by the original manufacturer. Make sure all the parts that should be included are present, including the owner’s manual and product registration card.
Here are some other common telltale signs and red flags to look for when assessing the authenticity of a product:
Look closely for obvious quality issues with packaging or the product itself.
Look for misspellings, errors, or misprints on certification labels, tags, plates, or packaging.
Be suspicious of pricing that is “too good to be true.”
Be wary of products from unknown sellers, online auctions, or no-name stores, including “copycat” e-commerce websites.
How to report a counterfeit product
If a product is believed to be counterfeit, it is recommended to contact the brand owner. This will allow authentication of the concerning product and ensure the potentially hazardous product is removed from the marketplace.
It is important that you provide as much information as possible. The more information a brand has, the better chance it can find similar products and remove them from the marketplace to protect consumers. This includes:
Name, business name, address, domain name, and any other identifiers to the vendor.
Description of commodity, including explanation on why it is suspected to be counterfeit.
Know that you can help
From the manufacturer designing the product, to the government body inspecting imports, to the distributor selling products, and the contractors installing them, everyone across
the industry is subject to the dangers of counterfeiting. It is crucial to work together to prevent these unsafe counterfeit products from causing harm to people and property.
As a contractor, you can do your due diligence by setting up a reporting process to protect the company and enhance document retention programs. It is also beneficial to establish a companywide process for reporting counterfeit electrical products. This provides a collaborative outlet for alerting fellow workers and protecting your property. If you need to report a counterfeit product, there are several options available to you, such as The Canadian Anti-Counterfeiting Network, Crime Stoppers, or the nearest detachment of the RCMP.
Protect your business with a tailored contractor’s insurance policy
Regardless of how educated you are on this type of risk, you still may find yourself to be a victim of a counterfeit electrical product. To learn more about how you can protect yourself and your business with a tailored insurance policy, visit our contractor’s insurance page today!
This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information.
