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Counterfeit goods have long plagued South Africa’s alcohol and cigarette industries, but the country’s toy and games market has emerged as the latest target for illicit traders, with fake products now estimated to account for a quarter of sales. Industry players warn the surge is not only costing the economy millions of rand but also exposing children to potentially dangerous toys that bypass safety standards and regulatory checks. The South African Toy and Games Association (Sataga), which represents toy makers and distributors, estimates that counterfeit and noncompliant products now make up about 25% of the local toy and games market, worth about R1.9bn of the industry’s estimated R8.7bn value. That marks a sharp increase from about 5% in 2022, as counterfeit goods have spread beyond informal markets into mainstream retail outlets and online shopping platforms. According to a report by the Consumer Goods Council of South Africa and Econometrix, toys and games are among the most heavily counterfeited product categories globally, consistently ranking as the second-most affected sector in international intellectual property crime. The EU toy sector alone loses about €1bn annually to counterfeiting, equivalent to 8.7% of total sales. The sector is particularly exposed due to its combination of: high-volume production;strong brand dependence; relatively low manufacturing costs; and pronounced seasonal demand. According to the report, the toys and games sector employs an estimated 11,045 people. However, about 2,275 jobs are displaced by illicit trade. Sataga MD Farrel Frank said the growth of the illicit trade threatens jobs across the manufacturing, distribution and retail value chain and deprives the state of an estimated R333m a year in taxes and duties.“Every time consumers buy counterfeit goods, they’re feeding a shadow economy,” Frank said. “That money doesn’t circulate through legitimate businesses, doesn’t create formal jobs and doesn’t contribute to public revenue.”These goods are unchecked. Our ports of entry are porous and the criminal syndicates behind these toys and games are highly organised.— Farrel Frank, Sataga MDThe growth highlights serious weaknesses at ports of entry and the increasing sophistication of organised criminal networks. According to Frank, counterfeit toy makers often bypass safety testing and regulatory requirements, allowing unsafe products to enter the market at significantly lower prices than legitimate brands.“These goods are unchecked. Our ports of entry are porous and the criminal syndicates behind these toys and games are highly organised,” he said.Unlike legitimate importers, counterfeit networks often avoid maintaining digital records, favouring coded notebooks and cash-based systems that make investigations far more difficult.While consumers often think of counterfeit goods as merely cheap knock-offs, Frank argues that the real danger lies in safety.Counterfeit toys bypass the quality controls, testing procedures and safety standards applied to legitimate products. As a result, children can be exposed to hazardous substances, defective components and potentially life-threatening defects.Counterfeit toys may contain dangerous levels of lead, mercury or phthalates. Electrical toys can pose fire risks, while poorly manufactured products can become choking hazards.A recent complaint received by Sataga involved a counterfeit “squishy” toy that emitted a strong chemical odour immediately after the packaging was opened. The consumer reported severe burning and tingling after accidentally touching the toy to his face.“If that had been a child, the consequences could have been much more serious,” Frank said.The incident highlights a fundamental problem with counterfeit products: there is often no accountability when things go wrong.“When parents buy a toy, they assume it has undergone safety testing. Counterfeit toys often have no such guarantees. The issue is no longer just intellectual property infringement. It is fundamentally about child safety.”In April Sataga and law enforcement officials seized about 61,000 counterfeit party products valued at R6m to R8m. The confiscation included plates, cups, serviettes and other children’s party itemsIndustry stakeholders argue that customs and law enforcement agencies face an uphill battle because counterfeiters increasingly use small parcels ordered online rather than large shipping containers. These shipments are harder to identify and inspect, allowing fake products to slip through traditional border control systems. The rapid growth of online marketplaces has further complicated enforcement. Counterfeit sellers can create temporary online storefronts, sell products directly to consumers and disappear before authorities can take action. Online sales have become a key channel, with research showing that 60% of seizures of dangerous counterfeit products destined for Europe were linked to e-commerce transactions, making enforcement increasingly difficult. Local industry stakeholders are calling for: stronger enforcement at ports of entry;tougher penalties against counterfeit traders; and increased consumer awareness. In April Sataga and law enforcement officials seized about 61,000 counterfeit party products valued at R6m to R8m. The confiscation included plates, cups, serviettes and other children’s party items.Hazardous materials What alarmed investigators was not only that the products carried counterfeit branding but also that they had been transported in used pesticide packaging still displaying hazardous material warnings.For Frank, the seizure demonstrated how counterfeiting can create unseen health risks for consumers. “A child drinking from a contaminated cup could potentially become ill, and nobody would know where the problem originated,” he said.Since launching its enforcement programme in 2025, Sataga says it has conducted 142 raids in seven provinces. The association works with brand owners, investigators and law enforcement agencies to identify counterfeit supply chains and remove products from the market. Frank advises shoppers to be wary of deals that seem too good to be true, particularly where branded products are being sold at dramatically discounted prices.He also recommends checking product barcodes using verification apps and paying attention to packaging quality, unusual smells, poor printing and suspicious retail sources.Business Times
