Homeland Security Issues and Counterfeit Cosmetics

COUNTERFEIT COSMETICS & HOMELAND SECURITY ISSUES

Problem Identification

Counterfeit cosmetics are prevalent specifically over the Internet on such websites as Ebay. These cosmetics are dangerous and cause severe problems even death among those who purchase and use these products. The U.S. Department of Homeland Security (DHS) is reported to be conducting an investigation of the major counterfeit cosmetic manufacturing rings that are producing and selling products reported to contain "high concentrations of various metals and carcinogenic ingredients normally banned from use in cosmetics." (Borrelli, 2013, p. 1) These ingredients when applied to the skin are reported to be such that may result in "long-term health issues." (Borrelli, 2013, p. 1) Adverse reactions to these makeups include "irritations and allergies" as well as other problems. (Borrelli, 2013, p. 1) Somosot (2014) reports that testing of counterfeit cosmetics including MAC and Chanel found these products to be "loaded with harmful lead, beryllium, aluminum and bacteria." (p.1) In addition, it is reported that the fake cosmetics "are proliferating in online retailers, flea markets, bazaars and swap meets." (Somosot, 2014, p. 1) Somosot reports that an Inside Edition investigation into the counterfeit cosmetics that were being sold on the streets and which were then tested by Upstate Labs stated findings that the "counterfeit makeup that Inside Edition bought from the street vendor had high levels of aluminum, which has reportedly been linked to Alzheimer's disease. The fake MAC eye shadows had high levels of lead." (Somosot, 2014, p.1) In addition, there were bacteria in some of the products. One consumer who purchased a fake MAC product had been "scarred for life." (Somosot, 2014, p. 1)

II. Objective Statement

The objective of this study is to determine what actions can be taken and by who to put an end to the sale of fake cosmetics in the American marketplace.

III. Alternatives Considered

Strategic planning to stop the sale of fake cosmetics in the American marketplace involves various agencies and actors including the Airlines industry, border security, the Federal Drug Administration, the Department of Homeland Security, as well as authorities in the U.S. states and municipalities, and the cooperation of private organizations throughout the United States. This will require a focused approach in stopping the inflow of these fake cosmetics into the United States. The first step in implementing such strategies involves educating the various agencies, actors, and organizations. Therefore, educational programs will be designed to provide information so that knowledge will be possessed by each of these designated stakeholders in preventing the inflow of counterfeit cosmetics into the American marketplace whether the inflow is via the airlines, border inflow or inflow through Internet websites offering these counterfeit cosmetics. As well, technology can be utilized effectively to assist in this matter by assigning each authentic producer of cosmetics with registered RFID identification that is encrypted making it difficult for those producing and selling counterfeit cosmetics to duplicate. This would enable mass scanning of cosmetics with RFID scanners to enable effective and efficient checking of these cosmetics. Border security, the airlines industry, the Food and Drug Administration (FDA) and the Department of Homeland Security (DHS) along with the U.S. states agencies and private organizations responsible for overseeing this effort will be equipped with the necessary scanners to check cosmetics so that they can be checked on the streets, in the form of shipments being carried by trucks and other vehicles and packages being carried by Fed-Ex, UPS or the United States Postal Service vehicles. All involved agencies, actors and organizations will be given the regulatory authority to conduct checks and validation of the cosmetics within their jurisdiction. Therefore the alternatives identified include those of: (1) education and knowledge provision; (2) technology enhanced verification; and (3) regulatory authority being assigned to various agencies, actors and organizations.

IV. Analysis

The method of analysis identified in this study is based on the potential effectiveness of the stated alternatives and it is determined that each of these alternatives when combined into one effort have a high chance of success in stopping the inflow of counterfeit cosmetics into the American marketplace. The costs of these alternatives when combined will be considerable however; the benefits will override the costs due to the harms that result from the use of counterfeit cosmetics. Costs associated with implementation of these strategic alternatives will include the following stated costs:

(1) Educational and knowledge provision -- Amount unknown

(2) Implementation of RFID technology for authentic cosmetics: this includes the cost of RFID tagging and RFID readers which will be distributed to the various agencies, actors, and organizations that will be involved in the control of counterfeit cosmetics inflow into the American marketplace.

(3) Costs associated with assigning regulatory authority to the various agencies, actors and organizations involved in this strategic implementation.

V. Alternatives Selected

The alternatives selected in this strategic plan include education and knowledge provision to all agencies, actors and organizations identified as well as implementation of RFID identification tagging for legitimate cosmetics that is encrypted so that it is not easily duplicated in addition to provision of RFID scanning equipment to the various agencies, actors, and organizations that will be taking part in the effort to stop the inflow of counterfeit cosmetics into the American marketplace. The alternatives are to be immediately implemented.