New technology to overcome cosmetic counterfeiting

© Ufuk Uyanik – 123RF.com

Companies that operate within the cosmetics industry are aware of the cost of counterfeiting. It seems that the bigger the brand awareness, the greater the chances the brand will be counterfeited. One solution is to upgrade the current security measures of print, labelling and tracking solutions, which organised crime is duplicating with impeccable skill, with hidden technology.

The Pelta technology is based on the standard 2D code but extends the capability of the 2D code by adding a second layer of information. The second layer is hidden and invisible to the standard 2D code reader. The covert layer can only be decrypted by using a custom key, thus can be used as a basis of an authentication or track and trace solution. The licensee of Pelta can use the custom software for internal use and consumers may make use of a scanner application on their smartphone to authenticate the document or product.

The overt layer of information is read identically to standard 2D codes (ie QR, Data Matrix, Aztec, Maxicode, DotCode and others). This first layer of information is easily accessible and includes logistical or marketing information, easily read by scanner applications on a smartphone. Pelta coding has proven successful in eliminating fraud in countries worldwide. The results are promising and more can be done to turn the tide of counterfeiting.

“The counterfeiters tend to target big-selling brands, with Perry Ellis, Dolce & Gabbana, Calvin Klein, and Davidoff among the manufacturers affected by the criminal activity. Counterfeiting of premium brands is expected to strengthen over the coming years,” says Technavio analyst, Brijesh Kumar Choubey.

Laws in place not sufficient

According to Spoor & Fisher, the Counterfeit Goods Acts of most African countries set out to streamline and create effective enforcement measures to enable owners of trademarks, copyrights and marks protected to take action against the counterfeiting of their products.

In an essence, the majority of African countries have strengthened laws and empowered enforcement agencies to search, seize and prosecute with little interference or red tape. However, the sheer size of Africa and the number of enforcement agents leaves a glaring hole of opportunity for criminal organisations.

“Beauty products are meant to enhance your features. However, the fakes can do quite the opposite. Our general rule is: if it seems too good to be true then it probably is,” says detective superintendent Maria Woodall, Police Intellectual Property Crime Unit (PIPCU).

A dermatologist recently told the Fox broadcasting network. “Fake cosmetics could cause acne on your face, dermatitis, eczema or scaling. Theoretically, you can absorb (them) through your skin too. There could be bacteria because there is no quality control. Anything could be in there.”

The cheaper imitations that are flooding the market may look legitimate and please the purse but they have been found to contain ingredients that can cause permanent damage. In addition, according to Interpol, profits made from counterfeit cosmetics are used to fund drugs smuggling and terrorism, this is the shocking flipside to the shadowy world of counterfeit cosmetics.

Pagemark Africa is the African based supplier of software technologies. With a patent approved authentication technology called Pelta, it provides governments and international companies with secure printing solutions, product and document authentication, serialisation solutions and track and trace software.