ILMA Compoundings - March 2021 - 20

Fighting Fraud
Lubricants industr y uses overt and covert
solutions to combat counterfeiting
By Mindy Long

C

ounterfeit products create a
wide range of problems, from
harming a company's reputation and cutting into revenue streams
to creating dangerous situations for
end users. Creating fake lubricants
is big business in certain parts of
the world, but legitimate companies
are fighting back with advanced
packaging, information sharing and
consumer education.
" Tampering and counterfeiting
occur in all segments and markets, and
the lubricants industry is no exception.
It is a rapidly growing problem, and it
is a global problem, " said Steve Larson,
business development manager for
Brandywine Drumlabels. " It would be
a mistake to underestimate the potential harm to your company by failing
to perform an in-depth assessment of

20

MARCH 2021

| COMPOUNDINGS | ILMA.ORG

your potential vulnerability and what
steps you can take to mitigate your
exposure. "
Counterfeiting occurs at every level
- the product itself, the label and
the package. There are several forms
of counterfeiting, including stealing
or reproducing authentic labels and
applying them to counterfeit products, or stealing an original product
and relabeling or repackaging it as
if from a recognized or legitimate
supplier, Larson said. " There is also
the so-called 'fourth-shift' production
of additional units of a product that
are illegitimately manufactured and
then sold on the black market as that
product, " he added.
The American Petroleum Institute
(API) has observed counterfeiting in
many forms, including everything

from unlicensed use of the API Engine
Oil Quality Marks, to use of similar
marks intended to deceive the consumer into believing an oil is licensed
by API, to outright full counterfeiting
of marketers' licensed products, said
Jeffrey Harmening, manager, EOLCS/
DEF/MOM for API. " As our licensing
program has rapidly gained acceptance
throughout the world, we certainly
have observed an upward trend in
counterfeiting of API marks abroad, "
he said.
  Harmening added that a significant percentage of counterfeit oils
that API has tested fail to meet the
packaging's specifications and sometimes contained used oil. Some of
the low-quality oils are so bad that
they would cause significant harm
in a modern engine over time and


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ILMA Compoundings - March 2021

Table of Contents for the Digital Edition of ILMA Compoundings - March 2021

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