Loading...It’s not something we read about in the papers or even see on TV, but the problem is every bit as real as lead in our toys or contaminated baby formula. Imported counterfeit parts are streaming into the electrical industry. It’s a multi-billion-dollar a year problem that leaves not only the contractor, but the owners at risk when problems arise from faulty electrical parts.
NECVA and the IBEW, as well as their partners at the UL, the Underwriters Laboratory, are among the leaders in a growing awareness campaign to warn owners as well as the contractors who work for them that an ounce of prevention is worth a pound of cure.
It’s an effort to educate the electrical industry about what to look for and collaborating with law enforcement to get these dangerous and illicit products off the shelf. During the NECA 2008 show, we had a chance to listen in on a panel discussion about these counterfeit products. When cheaper products are a driving force behind cheaper bids, it’s a clear case of “let the buyer beware”.
Many reputable contractors make a habit out of buying from a reputable supply house. But when those suppliers don’t have everything a contractor needs, the internet, and a dangerous order, is simply a click away. Ninety-five percent of the counterfeit goods in the United States come from China, and more companies are realizing that what you pay for may not always be what you get.
Bob Crane, Lead Enforcement Specialist, Underwriters Laboratories, Inc.
“UL has known for a number of years that there has been a problem with some counterfeiting of our labels, but the problem never really got to the drastic and dramatic numbers until 15, maybe 18 years ago. We always had some security features in some of our more prone to be counterfeited products. But with more and more product being manufactured overseas and off shore, the problem has escalated.”
Those problems can be big ones for the electrical contractors, including fire, loss of property, or even loss of life.
Kevin Yates, Vice President, Siemens Energy & Automation, Residential Division
“First and foremost, it’s a tremendous safety issue. If we have products that are entering into our market that do not fit the form and function that they are designed to, people are going to get hurt, or even lose their lives, and you’re going to have significant damage to property.”
Nobody is immune from civil or criminal action, including building owners, who have responsibilities to ensure that what’s installed in their building will not harm any occupants.
William J. Ferguson, Vice President of Administration & General Counsel, Babcock Power
“Everybody is within that realm of the touch, as I like to say, who touch the product, who install the product, is going to get named. It’s considered a breach of contract to the party you have your contract with, you’ll be sued for negligence, you’ll be sued for gross negligence, you’ll be sued for intentional misrepresentation for installing a product that you knew that was wrong when you put it in.”
Two hundred and fifty billion dollars a year lost to counterfeit products coming into this country, and that’s just one cost. There are other costs, too, like the damage done to a brand or a contractor’s reputation because of installing a counterfeit product that fails.
Bob Crane, Lead Enforcement Specialist, Underwriters Laboratories, Inc.
“250 billion dollars in the US economy is about 7 or 8 percent of all products that are sold. So image that is seven or eight out of every 100 products sold in the marketplace are counterfeit.”
And like in all business, you get what you pay for. Buying something from an unauthorized dealer or off the internet might be cheaper, but it might end up costing you big bucks in the long run.
Stephen Lichtfield, Assistant General Counsel, Schneider Electric/Square D
“I don’t know if it’s worth it so save a few bucks to buy from someone if you don’t know where their products came from. If it was me, I wouldn’t do it. I would buy from an authorized distributor, making sure that I know that I am getting a genuine Square D product or another genuine electrical product that’s form one of the original or authorized factories.”
So, how are these businesses and associations fighting the counterfeiters? By staying one step ahead of them, and doing their best to prosecute every case they find.
Bob Crane, Lead Enforcement Specialist, Underwriters Laboratories, Inc.
“The counterfeiters, they figured it out after a while, just like they do with currency and money. They see what covert and overt features might be in the label, so we are constantly upgrading and changing our labels. This year, we have actually developed a new gold holographic label that was just introduced in June of this year. It’s got some of the most highly technological and advanced covert features. People like law enforcement and customs will use this technology to help spot these products before they get onto the retail shelves.”
Kevin Yates, Vice President, Siemens Energy & Automation, Residential Division
“We are actively working with our distribution channel partners, trying to uncover and investigate deeply those individuals who might be participating in that illicit behavior. That gets right into my next point, which is aggressive prosecution. We are going to aggressively go after people as we see them violate and knock off our products, we are going to be very aggressive about what we do to bring those folks to justice.”
Until all of these counterfeit products are rooted out, there are always steps that contractors and building owners can do to protect themselves.
Make sure that you look for correct UL marks, and the brand’s correct logo and color scheme. To ensure that you are getting the best products available today, make sure that you look for the IBEW label, alongside the UL label, as seen here. Don’t buy products that have no instructions or warnings. Things that are labeled as overstock are often counterfeit. And finally, if the price seems too good to be true, it probably is.
But more than anything, just use your common sense business practices.
William J. Ferguson, Vice President of Administration & General Counsel, Babcock Power
“Be aware. Train your people, train your apprentices. Ask your project managers to be aware of what is being picked up at the local supplier’s office. Have them do a quick look-see and make sure that what they are receiving is genuine. If they are, by and large, you’ll be protected. If not, you do so at your own risk.”