Counterfeiting has always been framed as a brand protection problem. A revenue problem. An intellectual property problem. But a study published by the American Apparel & Footwear Association (AAFA) in February 2026 reframes it as something more urgent: a consumer safety crisis.
The study, titled “Unboxing Fake Fashion Unleashing Real Dangers”, found that 41% of counterfeit apparel, footwear and accessory products tested failed to comply with US and international product safety standards. These are not marginal failures. The chemicals found in these products exceed regulatory limits by orders of magnitude.
What the AAFA Study Found
Working with accredited testing laboratory Intertek, the AAFA tested 39 counterfeit products, including clothing, footwear and accessories, between August and December 2025. Of those, 16 failed safety standards.
The chemical findings are stark:
- Phthalates at 650 times the regulatory limit. Eight products (more than 20% of all samples) failed for excessive phthalate levels. One product contained nearly 327,000 parts per million (ppm) of diethyl phthalate (DEP). That exceeds the limit set in the AAFA’s Restricted Substances List by more than 650 times. Phthalates are endocrine disruptors linked to reproductive harm and developmental issues.
- Lead in a men’s jacket. One jacket contained 191 ppm of lead, a heavy metal that accumulates in the body and causes neurological damage, particularly in children.
- Formaldehyde at 10 times the limit. A sports hat contained almost 10 times the regulatory limit for formaldehyde, a known carcinogen that causes skin irritation and respiratory problems on contact.
- PFAS, BPA and other hazardous substances. Five products failed for PFAS (per- and polyfluoroalkyl substances, commonly called “forever chemicals”), three for BPA, and six for alkylphenols and alkylphenol ethoxylates.
As AAFA president and CEO Steve Lamar stated: “Counterfeiting is not just an issue of consumer trust or brand protection, it is an issue of public health.”
Where These Products Are Sold
The study also highlighted the distribution channels involved. At least 25% of the counterfeit products that failed safety tests were purchased on or marketed through Meta platforms, including Facebook and Instagram.
This aligns with a broader trend. Social commerce has become one of the fastest-growing channels for counterfeit distribution. Platforms like Facebook Live, Instagram Shopping and TikTok Shop give sellers direct access to consumers with limited oversight. The USTR’s 2025 Notorious Markets Report identified 37 online markets worldwide as significant facilitators of counterfeiting activity.
The shift matters because consumers buying through social platforms often have no way to verify what they are purchasing. There is no standardised authentication step, no product safety certification visible at the point of sale, and limited recourse when something goes wrong.
The Bigger Picture: A $467 Billion Problem
The AAFA study sits within a wider context. According to the OECD’s 2025 analysis, global trade in counterfeit and pirated goods reached $467 billion, accounting for 2.3% of world trade. Clothing, footwear and leather goods remain among the most affected sectors, jointly accounting for 62% of seized counterfeit goods.
What makes this particularly concerning is the health dimension. Legitimate fashion brands invest significantly in restricted substances testing, supply chain audits and regulatory compliance. Counterfeit manufacturers operate outside these systems entirely. They have no incentive to test for harmful chemicals and no regulatory oversight to enforce it.
The result is that consumers, many of whom may not even know they are buying counterfeit products, are exposed to chemicals that legitimate supply chains have worked to eliminate.
What Brands Should Be Doing
The AAFA study is a call to action, but not just for regulators and platforms. Brands themselves have a role to play in closing the gap between legitimate products and counterfeits. Three areas stand out.
Make authentication accessible to consumers
The most direct way to protect consumers is to give them a simple method to verify that a product is genuine before they buy or use it. This means moving beyond authentication that only works at customs checkpoints or in brand-owned stores. It means giving consumers a way to check for themselves, at the point of purchase.
QR-based authentication, where a consumer scans a code on the product or packaging to confirm its authenticity, is one approach gaining traction. When paired with physical security features like holograms, it creates a layered system that is difficult for counterfeiters to replicate and straightforward for consumers to use.
Treat safety as the core message, not just IP protection
For too long, anti-counterfeiting has been positioned as an intellectual property issue. The AAFA data makes it clear that consumer safety is the more compelling and more urgent framing. Brands that communicate the health risks of counterfeits, not just the legal implications, will build stronger cases for enforcement action and consumer awareness.
Push for platform accountability
The finding that 25% of failed products came through Meta platforms underlines the need for brands to engage directly with e-commerce and social commerce platforms on authentication and enforcement. This includes supporting regulatory efforts like the EU’s Digital Product Passport, which will require verifiable product data across the supply chain.
How Product Authentication Fits In
At H010, we build holographic security labels with dual QR codes that let both brands and consumers verify product authenticity. The system works at the point of sale, in the consumer’s hands, without specialist equipment or training.
The reason this matters in the context of the AAFA study is straightforward. If a consumer can scan a product and confirm it is genuine, they can avoid the 41% of counterfeits that carry dangerous chemicals. Authentication is not just about protecting revenue or intellectual property. It is about keeping harmful products away from the people who would otherwise use them without knowing the risk.
If you are looking at how authentication can fit into your brand protection strategy, see how our system works or get in touch.
Sources: AAFA, “Unboxing Fake Fashion Unleashing Real Dangers” (February 2026); Just Style; OECD, Mapping Global Trade in Fakes 2025; FashionUnited