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DPP

How The Digital Product Passport Can Protect You From Reselling Counterfeit Products

The global market is plagued by counterfeit products, which threaten consumer safety, economic stability, and brand integrity. The EU Commission's DPP initiative aims to combat this by offering detailed information on product materials, manufacturing, and authenticity.

Tamara Ciochina

In today's global marketplace, the temptation to resell counterfeit products can be significant. Just as reselling counterfeit products unknowingly. Whichever the case, the repercussions of engaging in such practices are severe, extending beyond legal ramifications to encompass safety, economic impact, and brand integrity. Economic operators must understand these dangers and embrace technological advancements like the Digital Product Passport (DPP) to safeguard their businesses and consumers.

Counterfeit products frequently bypass safety regulations, leading to severe risks for consumers. Nearly 97% of recorded dangerous counterfeit goods pose significant hazards, including toxic chemicals in clothing that can cause skin irritation and more severe health issues. Electronics, medications, and children's toys are also commonly counterfeited, posing risks of electrical malfunctions, adverse health effects, and potential injuries.

The Role of Digital Product Passports in Ensuring Authenticity and Traceability

Digital Product Passports (DPPs) are emerging to tackle the counterfeit crisis. Introduced by the European Commission, these passports will house exhaustive information on a product’s materials, components, manufacturing processes, repair guidelines, and disposal methods. This digital archive allows both consumers and businesses to confirm product authenticity and trace origins, significantly enhancing transparency and trust.

The DPP initiative aligns with the growing focus on sustainability and circularity.

European technology firms are pioneering DPP solutions, leveraging blockchain technology to authenticate luxury brands, ensure supply chain transparency, and facilitate ownership transfers. These advancements fortify consumer confidence and help brands safeguard against counterfeits, fostering a reliable and transparent market.

Complementing these technological strides, the Digital Services Act now requires online platforms to preemptively detect and eliminate counterfeit goods. This regulation, in tandem with DPPs, establishes a solid legal framework, guiding economic operators to adhere to compliance standards and avoid hefty penalties.

Regulatory Risks for Authorised Representatives

Under recent EU regulations, including the Digital Services Act, authorised representatives face heightened risks and responsibilities. These regulations mandate that online platforms and their representatives proactively detect and remove counterfeit goods, trace sellers, and implement mechanisms to flag illegal content. Failure to comply can result in significant fines and legal repercussions. Authorised representatives must ensure rigorous compliance and monitoring to avoid liability and protect their business interests.

Conclusion

The dangers of reselling counterfeit products are multifaceted, affecting consumer safety, economic stability, and brand integrity. Economic operators must recognise these risks and adopt innovative solutions like Digital Product Passports to combat the counterfeit crisis. By embracing DPPs, businesses can ensure product authenticity, promote sustainability, and protect their market integrity in an increasingly digital and interconnected world.

Source: https://www.eu-startups.com/2024/05/the-counterfeit-crisis-in-fashion-why-it-matters-and-tech-solutions-leading-the-way/