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A new study released by the Grocery Manufacturers Association (GMA) and A.T. Kearney, titled Consumer Product Fraud - Detection and Deterrence: Strengthening Collaboration to Advance Brand Integrity and Product Safety, uncovers issues enabling product fraud and puts the cost to industry at $10bn to $15bn per year. The study concludes that a fundamental change in the way industry and governments respond to product fraud and ensure product safety is critical to minimize risk and protect consumers.
"This study identifies and measures the consequences of consumer product fraud, but more importantly, the study provides specific recommendations for consumer product companies and governments on how these organizations can better work together to address the consumer product fraud issue" notes GMA.
A.T. Kearney partner Jim Morehouse stated, "It is critical that consumer product company C-level executives take a strategic risk-management approach to the sourcing of product ingredients. A single consumer-fraud incident has the potential to shatter consumer confidence in a specific brand as well as cause major financial dislocations for a company."
The study provides specific recommendations for industry, companies, governments, suppliers and retailers. It is available for download at: www.gmaonline.org/publications.
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