Counterfeiting of brand-name products is a growing international problem. The U.S. Chamber of Commerce estimates that 7 percent of world trade is in counterfeit goods, and the Federal Bureau of Investigation estimates that U.S. companies lose $200 billion to $250 billion a year due to counterfeiting.
When consumers unknowingly purchase counterfeit products, which Colgate has no role in producing or distributing, the impact has a much greater impact on the Company than just the loss of sales. It affects the relationship and trust that we have established with consumers who have a right to receive the quality and safety that they expect when they purchase Colgate brands.
Counterfeiting has evolved into a sophisticated global manufacturing and distribution industry. To combat this serious issue, Colgate launched a centralized anti-counterfeit initiative in 2006 to ensure that consumers receive Colgate’s genuine high-quality products.
A cross-functional Anti Counterfeit Taskforce (ACT) with Colgate professionals from corporate communications, global security, information technology, legal, supply chain and technology provides global supervision to anti-counterfeiting efforts across the Colgate world. The taskforce examines counterfeit developments and has created a standard protocol that is applied in addressing all counterfeit cases.
