White Paper WP012002EN Effective March 2014
Suspect, counterfeit, and fraudulent
electrical products: targeting authenticity
Tom Grace Table of contents
Brand Protection
Manager Executive summary. . . . . . . . . . . . . . . . . . . . . . . . 1
Eaton’s Electrical Dangers of counterfeit electrical products . . . . . . 1
Sector, Americas
Safety. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Unexpected costs . . . . . . . . . . . . . . . . . . . . . . . 2
Other serious financial implications. . . . . . . . . . 2
Combatting counterfeiting. . . . . . . . . . . . . . . . . . . 2
Manufacturers . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Industry organizations . . . . . . . . . . . . . . . . . . . . 2
Government. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Proactive consumers. . . . . . . . . . . . . . . . . . . . . 3
Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
About Eaton. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
About the author. . . . . . . . . . . . . . . . . . . . . . . . . . 3
Executive summary
Manufacturers and trade associations have
devoted much attention to the effects of
counterfeit electrical products on consumers and
how to protect the supply chain and customer
from these potentially harmful parts. For example,
Eaton’s electrical business has adopted a strict
policy for counterfeiting and is committed to anti-
counterfeiting technologies and programs. This
white paper introduces the effects of counterfeit
electrical products and reviews the measures that
the industry is taking to thwart counterfeiting.
Dangers of counterfeit
electrical products
Safety
In many instances, counterfeit products appear to
be genuine, but they are unable to meet minimum
performance specifications. Manufacturers of
counterfeit products often use inferior materials
without regard for meeting published ratings
or safety. These “knock-offs” consistently
fail independent certification testing from
organizations such as Underwriters Laboratories
(ULT). Instead, counterfeit product manufacturers
rely on deception and prices that are below
market levels to find their way into our homes,
businesses, and electrical infrastructure.
Counterfeit circuit breakers can result in product
malfunctions or failures, and can also cause
serious bodily injury, including electric shock,
electrocution, and even death. Counterfeit circuit
breakers are also capable of significant property
damage. Circuit breakers are designed to provide
circuit protection for power distribution systems
and to safeguard people and equipment. A breaker
failure leads to loss of production, possible
equipment damage necessitating costly system
analysis and replacement, and the increased risk
of worker injury at the time of failure or during
maintenance. The financial liability of such an
incident will fall on those who participated in the
supply and distribution of the counterfeit products.
White Paper WP012002EN
Effective March 2014
Unexpected costs
In addition to safety, counterfeit electrical products can add
additional costs in the purchasing process. If a buyer is shopping
for price alone, without regard to traceability of the product or
the nature of the channel it is purchased from, it is only later
in the procurement process that issues can even be identified.
These issues can cause delays during shutdowns or significantly
increase the costs of the products because of short-term delivery
requirements or expediting freight and shipping.
Other serious financial implications
If the safety hazards and financial liability posed by counterfeit
products fail to attract your attention, the economic consequences
should. These include layoffs due to unfair competition and reduced
customs and sales tax revenues, resulting in greater financial
burdens for businesses and individuals.
Worldwide, counterfeiting costs the electrical products industry
$600 billion annually. In the U.S., that figure is $200–$250 billion.
Because of the revenue “stolen” from lawful companies,
counterfeiting reduces U.S. employment by 750,000 jobs each
year, according to the International Anti-Counterfeiting Coalition
(www.iacc.org).
These issues are compounded by the production, sales, and
importation of counterfeit electrical goods, which are soaring at
alarming rates. According to the Department of Homeland Security,
over 3,400 seizures of “consumer safety and critical technology”
products accounted for a street value of more than $146 million in
2012, which is a 143 percent increase from 2011.
2 eaton www.eaton.com
Suspect, counterfeit, and fraudulent
electrical products: targeting authenticity

Combatting counterfeiting
Stopping the sale of counterfeit products is everyone’s responsibility.
This includes manufacturers, distributors, resellers (authorized and
unauthorized), governments, and customers alike. Collaboration will
be key in stopping counterfeit electrical products.
Manufacturers
Aware of the dangers of counterfeit electrical products to
consumers, manufacturers are taking measures to help prevent
counterfeits from entering the supply chain. For example, Eaton’s
electrical business has adopted a strict policy for counterfeiting
and is committed to anti-counterfeiting technologies and programs.
This includes enhancing products with labels and markings to make
them easier to identify and thwart counterfeiting, building awareness
among consumers of the dire consequences of using inferior goods
marked deceptively under brand names of reputable companies, and
engaging with government and law enforcement to create stronger
deterrent penalties and take action against illicit manufacturing,
importers, and brokers of counterfeit electrical products.
Industry organizations
Industry organizations, such as the National Electrical Manufacturer’s
Association (NEMAT), enable member companies in the electrical
industry to focus their collective efforts on identifying ways to stop
counterfeiting. Industry representation by NEMA can be used to
promote laws, regulations, or government directives. Other industry
organizations such as the Electrical Safety Foundation International
(ESFiT) rely on engagement from the electrical industry supporters
to promote consumer awareness of counterfeit electrical products.
These collaborative efforts carry a stronger message to the public.
Government
In order for governments to be effective at blocking the proliferation
of counterfeit products at customs and borders, laws need to be
enforceable while supporting the victims and not the criminals.
The engagement of the government to create stronger deterrent
penalties, especially where safety issues are concerned, is crucial
to stopping counterfeiting.
The government also needs the industry’s support and collaboration
to be effective. A high degree of brand holder engagement with law
enforcement is key to enforcing intellectual property rights (IPR) laws
successfully and taking criminal action against illicit manufacturing,
importers, and brokers of counterfeit electrical products.
Suspect, counterfeit, and fraudulent
electrical products: targeting authenticity
Proactive consumers
As the last step in the supply chain, customers can help combat
counterfeiting by educating themselves on how to identify a
counterfeit electrical product and avoid purchasing it.
The first step in identifying a counterfeit electrical product is
to recognize that they are difficult to identify. Many counterfeit
products are hard to detect because they contain the trademark or
service mark of the genuine brand or use the appearance of a well-
recognized article, which may not include the tags or labels.
An example of a counterfeit circuit breaker, together with a genuine
circuit breaker, is shown in Figure 1. While the physical differences
between the two circuit breakers are nearly undetectable, Eaton’s
circuit breaker authentication tool (www.eaton.com/counterfeit) can
help identify that the circuit breaker on the right is the fake one.
In order to avoid these safety hazards and unnecessary costs, it is
important to know how to spot a counterfeit electrical product at the
very beginning of the purchasing process. There are many posible
precautions for decision makers to take to become more confident
that their facility is free of counterfeit products. First and foremost,
the best way to avoid counterfeit electrical products is to purchase
products from the manufacturer’s authorized distributors or resellers.
There is a higher risk of counterfeits if one cannot trace the path of
commerce to the original manufacturer.
Purchase decision makers can also use tools provided by the original
manufacturer or certification organizations to verify that electrical
products are authentic, such as Eaton’s circuit breaker authentication
tool mentioned previously. It is also advised to scrutinize labels and
packaging for certification marks and suspicious additional labeling
not applied by the original manufacturer and make sure that all parts
are present, including the owner’s manual and product registration
card.
If a product is suspected to be counterfeit, it is recommended
to contact the brand owner. This will allow authentication of
the suspect product and ensure that the potentially unsafe
product is removed from the marketplace. Contact Eaton at
unauthorizedproducts@eaton.com.
Figure 1. Example of a Genuine Circuit Breaker and a Counterfeit
Circuit Breaker
White Paper WP012002EN
Effective March 2014
Conclusion
Counterfeit electrical products are a real danger to our safety,
businesses, and economy. The counterfeiting industry is
overwhelming, but that is no reason to give up and let it continue.
With collaboration among manufacturers, industry organizations,
resellers (authorized and unauthorized), consumers, government
organizations, and more, real steps are being taken to combat the
issue—but there is more to be done.
about Eaton
Eaton is a power management company that provides energy-
efficient solutions to help our customers effectively manage
electrical, hydraulic, and mechanical power. A global technology
leader, Eaton acquired Cooper Industries plc in November 2012. The
2012 revenue of the combined companies was $21.8 billion on a
pro forma basis. Eaton has approximately 102,000 employees and
sells products to customers in more than 175 countries. For more
information, visit www.eaton.com.
about the author
Tom Grace has a BS degree from the University of South Florida.
He has a diverse background of information technology, sales, and
marketing. His experience includes 16 years with Eaton, where he
is currently the anti-counterfeiting and brand protection manager for
the Americas Electrical Sector. He is also a member of the Eaton
global anti-counterfeit advisory committee. Tom is actively engaged
with federal agencies and local law enforcement. He has conducted
anti-counterfeit training at most of the major U.S. ports. Tom is also
engaged with industry associations such as UL, CSA,T NAED, and
NEMA. He may be reached at TomAGrace@Eaton.com.
EaTon www.eaton.com 3
White Paper WP012002EN Suspect, counterfeit, and fraudulent
Effective March 2014 electrical products: targeting authenticity


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Publication No. WP012002EN / Z15000 All other trademarks are property
March 2014 of their respective owners.