House Passes Bill To Crackdown on Auto Parts Counterfeiters

Washington DC May 24, 2005; AIADA reported that the U.S. House of Representatives on Monday passed a bill which promises to crack down on auto parts counterfeiters, reports The Detroit News. “The bill, spearheaded by U.S. Rep. Joe Knollenberg, R-Bloomfield Hills, would give law enforcement authorities new powers to destroy equipment used to make counterfeit products.”

Addressing the House, Knollenberg said counterfeit equipment is now being sold as replacements for crucial automotive parts like brake pads, spark plugs and filters. Beyond the auto industry, counterfeiters are also targeting products in the textiles, appliances, food and pharmaceuticals industries... Said Knollenberg, "This legislation will help put an end to the constant cycle of counterfeiting and dampen the fraud within our borders.” According to the News, “Auto parts suppliers by themselves lose about $12 billion a year due to fraud, according to the Motor and Equipment Manufacturers Association, known as MEMA.

The top three countries that serve as sources for counterfeit parts are China, Taiwan and Hong Kong, according to a MEMA report that was published last year.” The bill, pending House approval, will head to the Senate where it is expected to be well-received, according to Knollenberg.