ASPECTS OF FOOD FRAUD - Part 1 of 3

I have been investigating the issue of food fraud and find that it is much more complicated than I thought.  My impression was, food fraud dealt with people/companies selling unsafe product or substitution of raw materials.  I am right but only partially.  It is true that fraud can impact food safety and can be caused by people/companies selling unsafe product or by switching your raw ingredients.  However - this is a very limited view of food fraud.

What is Food Fraud?

1. Counterfeit products
• Same as counterfeit hand bags. 
• An unsuspecting customer can buy this when there is a problem, call you
• Against Intellectual Property laws (misappropriation of logo, patent, trademark, etc.)
2. Adulterated ingredients
• Supplier sells you an item that is not as contracted - Honey mixed with corn syrup when you purchased 100% Honey
• Your Company running out of an ingredient and substituting an alternate
3. Smuggling of product to alternate markets
• Country x labelling the product as country z to avoid high Tariffs or to increase the price
• Big in the coffee industry where coffee can cross a border and now have a price that is 5 cents or more higher.  This does not seam like much but each container of 40,000 lbs will net $2,000 US dollars extra if at the 5 cent increase level.
• Also big with Honey - a country will avoid custom tariffs by cross docking and changing paperwork to look like it came from a different country (one with lower custom tariffs)
4. Manufacturing of near identical copies
• Similar to number 1. but with a slightly altered colour, wording, etc.
5. Production overrun
• Your co-packer or one of your facilities makes 100 units as per your order request.  The facility makes 200 - 100 units for you and 100 units for themselves.
6. Tampered product
• Changed Best by dating or lot code information.
• repackaging of a damaged product known to be comprised
7. Mislabelled product
• Wrong Allergen information
• Fraudulent nutritional information
• Wrong net weight or unit count
8. Known contamination
• Food has been tested and is unfit for consumption or is a lower grade than advertised.  It is still sold or remixed into good product to dilute the contaminant
9. Theft of product
• Your product is stolen from the truck, warehouse, store, or production facility and it finds a way into consumers hands.
10. Diversion of product
• Product is sold to a market where it was not to have been sold.

Very long list.  The common string in all the above is, they are crimes of opportunity.  Also the "fraudster" is always looking to get around a country's and your company's laws, rules, practices, and procedures.

Next - I will look why this Fraud is dangerous to consumers.