The study, ‘From fakes to forced labour: Evidence of correlation between illicit trade in counterfeits and labour exploitation’ shows that countries most frequently identified as sources of counterfeit products tend to have weaker labour-market conditions, such as insufficient labour protections, longer working hours and a higher incidence of fatal occupational injuries.

The findings reveal that weak governance, limited enforcement and social vulnerability create environments where both counterfeiting and labour abuse flourish.

Using global customs seizure data and labour statistics, the report shows that labour exploitation lowers production costs and reduces risks for criminal operators, making illicit activities more profitable. In this context, forced labour and informality emerge as structural enablers of counterfeit production and distribution rather than isolated by-products.

Main findings

• Countries identified as sources of counterfeit goods show higher levels of forced labour, child labour (including hazardous forms), informal employment and fatal occupational injuries.

• Countries with weaker labour protections, including lower trade union membership and collective bargaining coverage, show greater exposure to illicit trade networks.

• The analysis shows that the prevalence of forced labour is associated with the value of counterfeit trade.

• Evidence from enforcement authorities confirms that counterfeiting is often sustained by abusive labour practices to cut costs and to maximise illicit profits. Criminal groups exploit vulnerable workers at multiple stages of illicit supply chains, such as clandestine factories operating without contracts, warehouses where migrant workers are locked in overnight, and small workshops where children assemble counterfeit products.

The study calls for more integrated policy responses: combining stronger labour governance with enhanced trade and customs enforcement, improved data collection and closer cooperation between labour, customs and law-enforcement authorities. According to the report, addressing labour exploitation is essential not only to protect workers’ rights but also to disrupt the criminal networks behind the global trade in counterfeit goods.

Source: https://www.euipo.europa.eu/en/news/new-oecd-euipo-study-reveals-strong-links-between-counterfeiting-and-labour-exploitation