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Fake Products, Real Consequences: IP House – ISB Research Reveals the Human Cost of Counterfeiting in India

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Findings show Indian shoppers continue to encounter fake products in routine purchases, impacting both consumer safety and confidence in the marketplace.

“Addressing the truth about counterfeiting demands coordinated action from governments, brands, online platforms, and consumers.”— Jan van Voorn, CEO, IP HouseDELHI, INDIA, July 26, 2026 /EINPresswire.com/ — A joint study by IP House and the Indian School of Business (ISB) Institute of Data Science (IIDS) reveals that close to four out of five Indian consumers have bought a counterfeit item at some point, and more than half of those buyers were unaware of it at the time. The publication, Counterfeit Crisis in India: Consumers, Consumption and Consequences, investigates the scope, personal toll, and actual experience of consumers with fake products across six categories deemed high-risk: pharmaceuticals, food and drink, electronics, children’s toys, cosmetics, and automotive components. The research explores how shoppers view the connection between organized crime and the production, distribution, and sale of counterfeit items, and how recognizing that link reshapes the perception of counterfeits from a harmless deal into a threat to public health and consumer safety.

Based on a nationally representative YouGov survey of more than one thousand online urban consumers in India, along with industry analysis and documented incidents of damage linked to counterfeits, the report outlines how fake products infiltrate every major retail channel. Shoppers are often exposed not because they deliberately look for fakes, but because telling genuine items from counterfeits has become increasingly challenging.

Law enforcement agencies like Interpol and Europol note that counterfeiting is a highly profitable illegal operation frequently used by transnational criminal syndicates. Although 62% of survey participants acknowledge that counterfeit items present a serious danger to their health, the study discovered that a large number of consumers still regard counterfeiting as simply a commercial or economic concern rather than a widespread form of illegal activity.

Additionally, the results highlight a significant gap in perception regarding criminality: only 44% initially recognize the sale of counterfeits as a criminal act, yet once organized crime is clearly explained, 56% agree that criminal networks are involved in making, distributing, and selling counterfeit products, and 50% believe that raising public awareness of organized crime’s role is a key step in safeguarding consumers from counterfeits. This disconnect carries weight. When counterfeiting is viewed merely as a cheaper alternative, the social disapproval surrounding it decreases, reporting drops, and the networks behind it can continue functioning with little oversight.

“Each counterfeit item carries a price,” stated Jan van Voorn, CEO of IP House. “The truth is that the counterfeit trade is tightly linked to highly organized criminal networks that exploit global supply chains and online marketplaces. They push fakes for enormous profits, putting consumers at risk and harming legitimate companies. Tackling the realities of counterfeiting calls for joint action from government, brands, platforms, and consumers. IP House is honored to work with ISB to shed more light on this issue, because safety and faith in everyday goods should never be optional.”

Professor Manish Gangwar, Executive Director of the ISB Institute of Data Science (IIDS), stressed, “Consumer awareness is essential, but it is no longer enough. What is urgently needed is a comprehensive and dynamic strategy for fighting counterfeiting. Safeguarding consumers requires a move toward technology-driven solutions that use artificial intelligence, digital verification, and intelligence-based enforcement to identify and dismantle counterfeit networks before they can reach shoppers. At IIDS, we are dedicated to promoting evidence-based technologies and policy frameworks that build trust in both India’s digital and physical marketplaces.”

The report identifies counterfeit trade in India as:
— An illegal business, where organized criminal networks produce and distribute fake products globally, earning large profits with comparatively low risk while overlapping with other serious unlawful activities.
— A danger to public safety across essential goods—from medications and food to cosmetics, toys, and car parts—that can result in poisoning, burns, allergic responses, fires, injuries, and, in documented instances, deaths.
— A market difficulty, with 79% of respondents reporting they have bought counterfeit items at least once, and 54% stating those purchases were made without their knowledge, showing how hard it is for consumers to spot fake products in real-world shopping situations.
— A risk across multiple channels, with counterfeit purchases happening in street markets, online marketplaces, social media, and physical stores. While consumers often link fakes with informal markets, the study finds that convenience and trust in well-known platforms can reduce vigilance online.

The report records the effects of counterfeit trade across categories that impact everyday life. Illicit liquor tainted with methanol has led to mass deaths in several states. Fake and contaminated medications have been connected to treatment failures and child fatalities. Unsafe electronics, toys, and auto parts can cause injury before consumers realize something is wrong.

Accordingly, the report advocates for a coordinated strategy to address counterfeiting in India, including:
— More consistent, intelligence-driven enforcement involving local police, customs officers, regulators, online platforms, and brand owners.
— Specialized task forces for intellectual property and consumer safety focusing on high-risk counterfeit categories.
— Consumer education that goes beyond generic warnings and provides clear steps on how to verify, avoid, and report suspected counterfeits.

About IP House
IP House is a global full-service intellectual property protection and enforcement company offering complete solutions for both online and offline settings. It merges advanced data intelligence with investigative and field capabilities to detect, analyze, and disrupt IP infringement and fraud across digital platforms and physical supply chains.

Collaborating with rights holders, industry groups, law enforcement, and legal partners, IP House supports the entire enforcement process—from monitoring and intelligence gathering to investigations, evidence development, and coordinated actions—helping clients tackle complex, cross-border infringement on a large scale. Learn more about IP House.

IP House Media Contact:
Sydney Redden
Sydney.redden@ip-house.com
+19134888874

About ISB Institute of Data Science
The ISB Institute of Data Science (IIDS) is an interdisciplinary research and capacity-building center that applies data science, artificial intelligence, and emerging technologies to societal and economic problems. Operating at the crossroads of technology, policy, and governance, IIDS partners with governments, industry, and global organizations in fields such as cybersecurity, digital finance, misinformation, and digital piracy.
The institute produces high-impact research and policy frameworks that guide national and international decision-making, including work on the economic, security, and public safety consequences of piracy and counterfeit ecosystems. Learn more about the ISB Institute of Data Science.

ISB Media Contact:
Samuel Sundar
Samuel_Sundar@isb.edu
+91 9866661680

Sydney Redden
IP House
+1 913-488-8874
email us here
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David Hall

David Hall

David is the senior editor at BusinessInsightNews. He has a background in journalism and has worked with various media outlets, covering topics ranging from markets and investing to business strategy and economic policy. When he is not writing, David enjoys reading, hiking, photography, and exploring new coffee shops.