Counterfeit automotive parts are not a rarity – there have been countless stories on the subject, most recently, the seizure of 3600 components, including spark plugs, filters and sensors worth an estimated £100,000, from a self-storage unit in Gloucestershire.
The seizure was the result of coordinated activity from eight car manufacturers, the Intellectual Property Office (IPO) and Trading Standards.
To combat the rise in counterfeit parts, the IPO launched a campaign in October 2024, ‘Fake always breaks’, to highlight the risks and how to check for counterfeit goods.
The campaign detailed safety-critical items such as tyres, wheels, airbags and brakes are among the most commonly purchased fake items, and that the issue is a serious problem for consumers and trade as “counterfeits are more likely to fail and endanger road users, putting lives at risk.”
The most recent data the government cited on the subject is now 10 years old, but the point is well made when it notes that “Organisation for Economic Co-operation and Development research estimated that counterfeit vehicle parts imported to the UK were worth almost £1bn in 2016.”
The IPO conducted a survey on counterfeit automotive parts and found that “one in six motorists who responded said they had bought a counterfeit part in the past 12 months alone.”
Worryingly, these parts included batteries (bought by 25% of motorists who admitted to buying counterfeit parts), tyres/wheels (23%) and windscreen wipers (19%). 14% of motorists who have purchased fake car parts bought counterfeit airbags, while more than a tenth (12%) bought fake brake pads or discs.
Although many purchases were made unknowingly, 58% of motorists told the survey that they did so knowing the part was counterfeit.
Price and, therefore, cost savings were the key reasons detailed by drivers. And if they gave that as a reason, it’s perfectly plausible that some – the unscrupulous – in the trade may apply the same logic.
But while risks exist, the problem is simple – actually being able to spot the fakes. That’s not easy, since counterfeits can be hard to tell apart from the genuine item, with only the parts’ finish and packaging being the giveaways. When it comes to aftermarket parts, things can get a little trickier. And it doesn’t help that some OEM parts are genuine, but the supplier removes the product numbers.
Of course, just because a part is genuine doesn’t mean that it’s not prone to failure – another complicating factor when separating the real from the fake.
Even so, for the trade, there are legal risks, which Andrew Hopkin, a partner in the criminal, compliance and regulatory team at Browne Jacobson, warns of. For him, “criminal liability is an obvious concern as dealing in counterfeit parts can result in prosecution.” He adds that “consumer protection offences might arise, whilst health and safety violations can occur where defective components create a risk of accident or injury. In the worst cases, corporate or individual manslaughter investigations could follow a fatal accident.”
Michael Cordeaux, a senior associate at Walker Morris, takes the point further, explaining that “the substandard safety profile of counterfeit OEM or aftermarket parts increases the potential for serious harm to road users. Where serious or fatal injury may result, both individuals and businesses can be prosecuted under the Health and Safety at Work etc. Act 1974 and for manslaughter offences.” Penalties include uncapped fines, and for individuals, prison sentences and director disqualification.
He also noted that those who knowingly sell or fit counterfeit products face the greatest risks, potentially committing fraud and trademark offences. “Offenders risk not only imprisonment and fines, but confiscation of stock and profits realised from the supply of non-genuine parts under the Proceeds of Crime Act 2002.”
Beyond that, Hopkin details likely substantial legal defence costs, expensive recall programmes requiring identification, and remediation for all affected customers. On top of that are insurance complications with “insurers refusing cover for claims involving counterfeit parts and imposing increased premiums. Businesses may lose authorised dealer status, cutting off access to genuine parts at trade prices and manufacturer support.”
He adds that the discovery of counterfeit parts can devastate a business’s reputation through negative publicity and social media exposure, leading to permanent loss of customer trust. He says that “rebuilding credibility can prove extremely difficult, even after resolving the issue. Trading standards investigations can result in business disruption and restriction as well as loss of essential accreditations and industry certifications.”
And then there are contractual issues cited by Cordeaux. He stresses that under law, “customers can demand refunds, replacements and compensation from garages if fake parts are fitted. Businesses may face civil claims from customers for injury or breach of contract.”
Cordeaux warns that “lack of knowledge that a part is counterfeit does not give immunity, or that someone else in the supply chain must be pursued instead; regulators will expect diligence to be conducted on suppliers and sufficient measures taken by all traders to be satisfied parts are genuine.”
For Hopkin the advice is clear: “Businesses should source parts from authorised distributors, implement robust verification procedures, train staff to recognise counterfeits, maintain detailed supply chain documentation, and ensure adequate insurance cover.”
Simply put, handling counterfeit parts can threaten a business’s viability and expose it, and potentially individuals, to criminal and civil litigation.