Phony Goods Pose Big Health, Safety Risks

(CBS)  When you think of counterfeit goods, designer clothes, pocketbooks, sunglasses and CDs probably come to mind.

But counterfeit products run the gamut -- and can cause serious harm to you or your family, reports Early Show consumer correspondent Susan Koeppen.

Items such as fake medicines, car parts, electrical products and more have been confiscated by government officials, and consumers need to know what to look for and how to protect themselves, Koeppen points out.

Millions of these items are flooding the market every year and making their way into the stores where we shop, Koeppen observes.

"We've really found that every product in every industry is vulnerable to counterfeiting and piracy," warns Caroline Joiner of the U.S. Chamber of Commerce.

She says counterfeiting is a $250 billion a year problem for the U.S. economy, and the criminals making fake goods are putting consumers at risk. "They care about making a profit, they don't care about consumer health and safety," Joiner notes.

What's more, Koeppen says, the counterfeiter making a phony Louis Vuitton one day could be making fake airplane or car parts the next.

Ford says counterfeiting and piracy cost it $1 billion dollars a year.

And millions of dollars of look-alike Bendix products, such as valves and brakes, make it to the marketplace annually, Koeppen says.

"We've seen brake pads that are made of sawdust," Joiner says. "We've seen brake pads that are improperly constructed. We're talking about brake pads that can end up in taxi cabs or school buses or even on 18-wheelers on the road."

Joiner showed Koeppen some counterfeit brake pads that had been confiscated, and Koeppen said it was hard to tell them from real ones.

The World Health Organization estimates that 10 percent of prescription drugs sold worldwide may be counterfeit. They may look the same, but counterfeit drugs often lack the active ingredient. They can lead to allergic reactions or worsen a patient's medical condition.

"The best-case scenario is the drug is just a watered-down version," Joyner says. "The worst-case scenario it is toxic, and a lot of these drugs are sold on the Internet." They can also make their way into mainstream pharmacies.

The assortment of counterfeit goods confiscated by the government is vast. Joiner showed Koeppen fake Lipitor, fake surgical mesh, even fake razors blades, and toothbrushes which "you are putting in your mouth," Joiner says. "And I can tell you right now that the counterfeiter did not pay attention to safety. You have no idea what type of materials went into making that."

The vast array of other fake items includes electrical cords and surge protectors.

Brett Brenner, president of Electrical Safety Foundation International says, "These counterfeit products do not meet safety standards and they will not provide the shock and electrical fire protection that you would expect."

Koeppen had video of a counterfeit iron catching fire during a laboratory test, and of a power cord that did the same while being tested by Underwriters Laboratory.

"This is scary stuff," Koeppen remarked. "Buying one of these, if it's counterfeit ... can burn your house down."

"It can," Joiner agreed, "and we have seen cases when it has done that."

The National Electrical Contractor Association (NECA) is starting an Anti-Counterfeit Products Initiative to address the counterfeiting problem.

While you may not be able to tell a real product from a fake with just a glance, Koeppen says, there are things you can do to keep from buying counterfeit goods:

Pay attention to price: Counterfeit items are often sold at a much cheaper price than the real product.

Pay attention to packaging: It may lack serial numbers or country of origin.

And shop at reputable retailers: Counterfeit goods are often sold on the internet, at flea markets and in discount stores.

The federal government, plus businesses big and small are spending millions to fight counterfeiting, Koeppen says, but it's a global epidemic, and most fake goods are made overseas and then sent to this country.

Adds Joiner, "These counterfeiters are all about making a profit, so they've absolutely going to take advantage of consumers during this difficult time. So, the key for consumers is to be vigilant and, if the price is too good to be true, they need to think twice about it."

In October, Koeppen noted, a law dedicating more money and resources to the fight against counterfeit goods was passed, and it includes tougher penalties for the counterfeiters.
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