Product counterfeiting is rampant, costing billions of dollars, while tampering is even more damaging, costing human lives. Here’s what packagers can do to keep products secure:

Protecting products against counterfeiting and tampering is a weighty worldwide concern. In fact, by some estimates, counterfeit goods account for between 5-7% of all world trade, reaching an annual value of over $250 billion. All types of products—including pharmaceuticals, auto parts, toys, software, vintage wines, artwork, airplane parts and consumer goods—are falling victim to some form of counterfeiting. Meanwhile, cases of product tampering remain infamous. Few can forget the 1982 Tylenol scare in which capsules spiked with cyanide killed 7 Chicago-area people. And more recently, in 1990, 89 children in Haiti perished from ingesting pharmaceuticals laced with antifreeze, while in 1996, more than 2,500 people in Niger reportedly died from taking a fake meningitis vaccine.

For packagers, label makers and their customers, these statistics underline the importance of secure packaging. In response to the Tylenol cyanide crisis, for example, makers of over-the-counter drugs began placing PVC shrink bands on their products to protect them from tampering. The integrity of these bands serves to reassure consumers that their purchases have not been tampered with after manufacture.

While the U.S. government does not mandate secure packaging, this could change in the near future. Currently, the Bioterrorism Act, which President Bush signed into law in June 2002, requires all food and drug manufacturing, processing, packing and holding facilities to register with the government, furnishing their name, address and the identities of all involved in each food and drug product. But despite the lack of a federal mandate for packaging security measures such as shrink labels and holograms, packagers and their customers should nevertheless consider these precautions in order to deter counterfeiting and tampering.

Some packagers and label makers are already looking into secure packaging. For example, Logotech, a New Jersey-based converter of pressure-sensitive labels is working on security technology for packaging with Tadbik Group, Tadbik Advanced Technologies, Israel. The two are collaborating and helping packaging and label customers worldwide protect their products. Tadbik president Gadi Honig says brand owners are seeking protection systems with multiple layers. “We provide all levels of brand protection technologies such as holograms, hidden images, microtext, sophisticated numbering systems and different inks for the end-user level,” he notes. And aside from utilizing security technology to prevent counterfeiting and tampering, Honig advises brand owners to embrace a comprehensive product protection strategy, which includes encouraging end users to seek genuine products.

Moreover, packagers and label makers can also take the simple precaution of learning more about the issue. The following resources can help:

1) Reconnaissance International, a global source of information on authentication for document security, personal identification and brand security.
2) Counterfeiting Exposed: Protecting Your Brand and Customers by David M. Hopkins, Lewis T. Kontnik and Mark T. Turnage, a book that explores the world of counterfeiting and offers advice on how to deter counterfeiters.
3) The Product Surety Center, a resource center for industries and government agencies endeavoring to keep products safe and secure.

By looking into security technology and keeping abreast of the latest developments, packagers and label makers can fight the growing trend of counterfeiting and make sure their products get to consumers intact.

Source:

Fighting for Secure Packaging
Laura Butalla, Senior Editor
Converting Magazine, November 2003
www.convertingmagazine.com/currentissue/current.cgi?view=11_03_30.html