ILLICIT TRADE IN FOOD AND FOOD FRAUD_second part
By Francesca Consorte
Summary of the second part of the publication concerning the multifactorial strategy in combating the phenomenon of food fraud and agri-food crimes.
As already reported, the WTO recently published the first Report on food fraud and agri-food illicit practices (https://www.wto.org/english/res_e/booksp_e/illicit_trade_in_food_and_food_fraud_e.pdf).
The publication includes valuable and diverse contributions from several authors (experts from the WTO and other international organizations such as TRACIT, FAO, ISF, SSAFE, and UNICRI) (https://www.wto.org/english/res_e/booksp_e/itfff_ch_introduction_e.pdf), who, after discussing the broad range of harmful effects caused by the phenomenon of illegal food trade and food fraud, and after illustrating various strategies useful to counter this phenomenon (including WTO agreements), agree on the need for a global approach based on a combination of factors.
Regarding this, the first idea to address is how essential it is to adopt a preventive approach (a strategy that is much more convenient and effective compared to interrupting an already ongoing trade of food) as well as the simplification of the bureaucracy that governs border crossing.
This publication also assigns a central role to the collaboration between the public and the private sphere, as well as international cooperation. Specifically, it is acknowledged how the WTO can play a fundamental role in this regard, as it is able to bring together governments, the private sector, law enforcement, and experts from around the world to work together in identifying tools to fight food fraud; this, especially thanks to the Agreement on Trade Facilitation (https://www.wto.org/english/docs_e/legal_e/tfa-nov14_e.htm) and the Agreement on the Application of Sanitary and Phytosanitary Measures (https://www.wto.org/english/docs_e/legal_e/15sps_01_e.htm). Regarding the role that private companies can play in the fight against fraud in the context of public-private collaboration, of particular interest is the document prepared by SSAFE (a non-profit organization for the protection of human, plant, and animal health), which has developed a free tool (Chapter 6) to help food companies in conducting vulnerability assessments and identify weak points with respect to food fraud (https://www.ssafe-food.org/tools/food-fraud-vulnerability-assessment-tool).
Among the strategies, modern food safety legislation is also considered essential, inspired by a holistic approach, which should not overlook the vulnerability factors present in modern agri-food systems (globalization and the extension of supply chains, the risks of e-commerce, etc.; see Chapter 4). Within these vulnerability elements, the publication specifically mentions new food sources and new production systems, such as foods obtained from cell cultures. These specifically present several critical profiles that must be considered to avoid fraud. On this point, the publication refers, for example, to the fact that the very recent origins of these products have not yet allowed the development of appropriate terminologies for the process and the product itself, something that could allow a potential “fraudster” to provide misleading information, for example, on the potential benefits of these new foods. Decisive importance is also assigned, at a strategic level, to the fight against frauds on seeds. In this regard, it is highlighted how seeds represent 'the starting point of the production process' (Chapter 5, p. 66) of the food sector and how the growing increase in illegal practices on them makes it necessary to adopt framework regulations to protect plant breeders’ intellectual property rights, especially at a national level (Plant Breeders' Rights - PBR).
Finally, the publication deals with criminal justice (Chapter 7), framed as one of the possible and fundamental contributions that States can provide in the battle against these illegal phenomena. The publication particularly emphasizes the need not to neglect the role played by criminal organizations in the context of 'food crime'. The publication reports that, although different types of actors and different 'tactics' are used to carry out illicit trade in food, one decisive fact serves as a common denominator: the need to deceive consumers. It is unlikely that consumers would knowingly purchase food of suspicious origins. That said, the publication analyzes the various ways in which food-related crimes are committed, examining the responses provided by criminal justice in some cases (Chapter 7, p. 79 ff. https://www.wto.org/english/res_e/booksp_e/itfff_ch_7_e.pdf).
To further explore the specific issue of how frauds are committed in commerce, the authors underline that the modus operandi may change depending on the purpose of food fraud activities. More precisely, these activities may be aimed at maximizing the profits derived from ongoing illicit operations within the context of organized crime, or may be the target of criminals or criminal organizations. In the first case, which generally occurs in areas where organized crime is deeply rooted, the criminal group operates by directly or indirectly controlling commercial activities, from wholesale distribution to retailers. This allows placing fraudulent products at any stage of the supply chain, targeting unsuspecting consumers. Although money laundering and diversification of investments represent the primary purpose of these organizations, the commercialization of “fraudulent” food products allows them to maximize their revenues. On the other hand, if food fraud is the criminal group's goal, it may happen that, in relation to certain commercial activities, the group “replaces” the payment of the so-called “pizzo” (“imposition of protection money”) with the purchase of counterfeit products so that these are then sold as authentic. This happens in contexts where there are no quality checks before the food reaches the store.
As highlighted in the publication, all this creates the risk of criminal infiltration into the food supply chain for mass products that are usually poorly controlled by law enforcement and are destined to reach vast geographical areas. A situation exacerbated by online sales, not only because of its ability to reach an unlimited audience but also because of the long time it takes to detect fraud committed through e-commerce. In the Report, even in the introductory section, the fundamental role that criminal investigations can play in the fight against food fraud and in protecting the interests endangered by them is emphasized. In-depth and prompt criminal investigations can lead to the identification of the perpetrators and acts of fraud, discouraging their commission in the future and making consumers aware of the fraud (preventing the foods involved from being consumed by an unsuspecting public). The investigations must obviously be conducted in ways that vary depending on the case at hand, taking into account the evidence, the consequences of illegal activities on consumer health and safety, and the possible involvement of organized crime. One point the authors reflect on is that investigations into food fraud often begin incidentally within broader investigations focused on criminal organizations and their lawful and unlawful activities. After all, the tools available to law enforcement depend on the type of crime investigated. In the case of investigations concerning serious crimes, punished with a certain severity in terms of prison sentences (such as the organized crime, but not limited to it), investigators may resort to more invasive investigative tools and more advanced technology, which could have a significant impact on the efficiency and outcome of the investigations themselves.
In conclusion, as already stated, the Report refers to technology, considered a fundamental resource to fight food fraud committed through online commercial platforms, to the extent that the Report notes how some countries have established real “cyber patrols” that use artificial intelligence to identify suspicious products, investigate potential frauds, and that even have the possibility of ordering the removal of the product from the platform.