As chair of the Standing Committee on Public Safety and National Security, I was honoured to take part in exposing the serious threat of counterfeiting in Canada.

Just 10 years ago, the RCMP didn’t consider counterfeiting to be a major criminal problem, but that has changed. Many of us are familiar with many “knock-off” items like fake Rolex watches, designer handbags and clothing. Most people purchase these kinds of items with the full knowledge that they’re not the real McCoy. There is a sinister side to counterfeit products, however, when innocent consumers buy inferior substitutes that jeopardize their safety.

Would you feel comfortable knowing that the new brake pads in your car were produced by unscrupulous manufacturers who sacrifice quality to cheapen the price? Of course not, and that’s why our committee decided to take the counterfeiting issue head-on.

Counterfeiting is on the rise in Canada and around the world. The problem covers a vast array of products that can include medications, electronics, batteries, toys, cosmetics, and parts for cars, ships and aircraft. Witnesses told our committee that Canadian consumers have purchased counterfeit power cords with insufficient grounding, extension cords with the wrong gauge of wire that create fire and electrocution hazards, car brake pads made of sawdust, shampoos that cause infections, and jewellery and children’s toys made with lead. Counterfeit drugs have been found to contain wrong dosages and ingredients, dangerous additives, and no essential ingredients at all.

The potential for disaster should prompt Canadians to seek an end to counterfeiting and piracy. Counterfeit goods are no longer limited to novelty items at flea markets – they are showing up in some major retail stores because they are difficult for merchants to detect. Some counterfeiters even attach bogus CSA certification marks to dupe consumers into believing they meet Canadian Standards Association safety criteria.

A study conducted by the Organisation of Economic Co-operation and Development (OECD) estimated in 1998 that these activities represented from five to seven per cent of total world trade. The Manufacturers and Exporters of Canada believe the global economic impact of counterfeiting and piracy is around $20- to $30-billion a year. We must realize that by purchasing counterfeit goods, we are supporting organized crime.

It appears that Canada is not a major manufacturing source of counterfeit goods. The RCMP estimates that about 90 per cent of phony products originate outside our borders, and experts believe that China and Russia are the major offenders. Even so, we can introduce tough penalties for the handlers of counterfeit products within our borders to rein in their business activities here.

Until now, convicted counterfeiters have dismissed fines as a simple cost of doing business. Our standing committee has recommended that the government draft laws with real teeth to convince counterfeit resellers in Canada that the risk simply isn’t worth it.

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