From Fakes to Forced Labour

Evidence of Correlation Between Illicit Trade in Counterfeits and Labour Exploitation

- OECD/EUIPO 2026

Illicit trade in counterfeit goods is not only an economic threat, it is a profound social one. While counterfeiting harms legitimate brands, industries and governments, it also generates hundreds of billions of USD in illegal profits each year. A less visible but equally critical dimension underpins this activity: the exploitation of workers, including forced labour, hazardous child labour and widespread informality.

This report brings new evidence to light. It shows that countries with higher levels of labour exploitation are also those where counterfeit production and export intensity tend to be greatest. These findings reinforce what enforcement authorities increasingly observe in practice: counterfeit supply chains frequently rely on coercive labour practices, unsafe working environments and the vulnerability of workers operating outside any form of legal protection.