The cosmetics and perfumery industry is one of the market areas most affected by counterfeiting and smuggling operations. In 2015, it was estimated that the total revenue lost to imitation products across the European Union was €4.7bn or 7.8 of total sales, according to a report into counterfeiting in the beauty industry by the EU Observatory on Infringements of fP Rights, a body overseen by the European Union Intellectual Property Office. Aside from the economic losses created by these goods, imitation cosmetics and fragrances have been found to contain toxic levels of hazardous substances, such as cyanides, arsenic, lead and mercury, all of which are harmful to consumer health. In some cases the chemicals have been found to cause allergic reactions including skin irritations, rashes, burns and swelling, as well as longer term health problems.
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