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"The continued growth of counterfeit electrical products is a real concern for us," says Randy Carson, senior vice president and group executive of Eaton's Electrical business. Eaton is one of several manufacturers working with NEMA.* "We're in the business of improving the safety and performance of our customers' facilities,” says Carson. “When counterfeit products enter the market, property and lives are put at risk. Our responsibility to our customers, our Westinghouse heritage, and our current brands is to increase awareness of the issue, educate those who can make an impact, and assist law enforcement agencies whenever possible."

The Bureau of Customs and Border Protection currently seizes approximately $1 million per month in counterfeit electrical merchandise, up from $4.5 million worth of counterfeit electrical products seized in total from 1997 through 2002. Those products not seized often end up in the market. 

"Counterfeiting is growing," says Clark Silcox, general counsel for NEMA. "In fact, last November and December shipments of products such as extension cords and power strips totaling $8 million were seized. It's tough to put hard numbers on the counterfeit electrical market, but based on the anecdotal evidence I hear, it's happening everywhere."

The damage of counterfeiting goes beyond the obvious economic loss to original equipment manufacturers. Counterfeit products jeopardize the performance of electrical systems and place personnel in danger of electrical accidents. While hard data does not exist tying counterfeit products to industrial accidents, in 1999 there were 17,200 industrial facility fires, according to the National Fire Protection Association (NFPA). These events resulted in 29 deaths, 609 injuries, and $1.1 billion in direct property damage.

"Counterfeit electrical products are a threat to the health and safety of anyone who uses electrical products," Silcox says. One product that is particularly susceptible to counterfeiting because of its small size and ubiquity is the low voltage circuit breaker. It is the most common type of over-current protection, ensuring the safe flow of electricity in residential, commercial, and industrial applications. Without circuit breakers, the safe flow of electricity becomes nearly impossible. Lives and property are put at risk when breakers do not perform properly.

"Counterfeit circuit breakers,” Silxcox says, “have been found that are nothing more than a good looking switch providing no electrical protection whatsoever." In addition to jeopardizing code compliance and personnel safety, use of unauthorized products can invalidate existing warranties.

For example, counterfeit breakers installed in switchgear can void the switchgear warranty. Warranty issues oftentimes result in unnecessary repair and replacement costs for the end user. 

“Engineers and operators are on the frontlines of defense against counterfeiting,” says Silcox. For their safety and for that of others, NEMA encourages them to know their original equipment and replace suspect equipment with new, approved products.

*NEMA’s Anti-Counterfeiting Committee, established in 2003, helps NEMA members understand how to protect their intellectual property rights, informs the public about counterfeit electrical products, exchanges information with other organizations concerned about counterfeiting, and works with law enforcement and public officials to address this problem.

NEMA is the leading trade association in the United States representing the interests of electroindustry manufacturers. Founded in 1926 and headquartered near Washington, D.C., its 400 member companies manufacture products used in the generation, transmission and distribution, control, and end-use of electricity. Domestic shipments of electrical products within the NEMA scope exceed $100 billion.

Press/Public Relations Contacts:
NEMA Communications Department
Email: communications@nema.org
Phone: (703) 841-3286
Fax: (703) 841-3386