Counterfeit goods spanning everything from fragrances to automotive mats proliferate in the market, and brands face a persistent challenge: a sizeable segment of consumers in Spain still seeks pirated products. EUIPO data show that Spaniards are among Europe’s most inclined to buy counterfeit items, second only to Bulgarians. As many as 20 percent admit to purchasing a counterfeit in the past year, and this rate has risen about 15 percent since 2020. Experts describe this as a cultural issue amplified by new technologies. When browsing online, some shoppers may hesitate to buy a premium option in person but feel more comfortable with counterfeit alternatives when hidden behind a screen. Andema, the brand advocacy association, notes that roughly half of young people aged 15 to 24 intentionally buy counterfeit goods.
In the digital marketplace, it is surprisingly easy to list a product for sale without a strong brand presence. A counterfeit can appear authentic, with identical advertising visuals, product photos, and a presentation similar to the genuine item, confusing consumers in the process. This scenario underscores a growing risk for legitimate brands operating in online and offline spaces.
EUIPO estimates that market activity dominated by organized crime costs the economy about 5.753 billion euros each year in losses. Jobs are affected as well, with around 50,000 positions disappearing annually. Additionally, enforcing intellectual property rights requires destruction of infringing materials, contributing up to 1.2 billion euros in annual losses. These figures illuminate the broader economic threat posed by counterfeiting.
Impact on the wider economy
Experts warn that the negative consequences of counterfeiting extend beyond brand damage. Rising awareness of risks associated with counterfeit consumption does not seem to curb purchase volumes, which remain stubbornly high. The problem spans a wide range of products, not just luxury items. Counterfeit demand targets mid-range goods, including fragrances, apparel, and cosmetics, with costs borne by brands through lost investments and weaker market conditions. As organized crime networks profit from the trade, legitimate businesses fund innovation and job growth suffer. Allowing counterfeiting to persist means a broader economic drain that communities and regulators must address together.
The protection of brand ownership also safeguards consumer rights. Fake children’s toys can pose choking hazards, and counterfeit creams or medicines sold online often lack guarantees or proper safety standards. This reality highlights the need for vigilant consumer education and robust product verification practices.
Public awareness initiatives are essential to curbing counterfeit activity. Authorities and brand owners should support campaigns that clearly communicate the dangers and legal consequences of counterfeiting. Building consumer trust is a shared responsibility; reducing demand can shrink supply in turn. It is important for search engines, marketplaces, and social networks to acknowledge that counterfeit and legitimate items may appear in the same sales channels, which can mislead shoppers if not carefully monitored.
Artificial intelligence and counterfeiting
The rise of automated processes and artificial intelligence introduces both risks and potential remedies for brands. Observers note concern about how these tools might affect intellectual property and creative work. Yet, when used responsibly, AI can enhance detection and tracing of counterfeit products across large datasets and digital environments. Advanced AI systems are capable of analyzing vast amounts of information to flag suspicious listings, track provenance, and support enforcement actions. This technology can play a meaningful role in reducing fraud when integrated with solid brand protection strategies and regulatory compliance.