Crime and consumption: the economic and social impact of piracy and counterfeiting in Brazil

Crime and consumption, unfortunately, often meet in consumers' product choices. This occurs when, deceived by supposed prices lower than the average of companies that follow the laws, they buy smuggled or counterfeit devices, equipment, drinks, clothes, medicines and sneakers.

According to data from the FNCP (National Forum Against Piracy and Illegality), 15 economic segments accumulated losses of R$326.3 billion in 2025. Clothing and alcoholic beverages lead this ranking, with losses exceeding R$80 billion each.

Therefore, these are not backyard criminals. They are authentic mafias, with different profiles from the mafiosi who appeared in old Hollywood films. Their photos do not usually appear in the newspapers, as they act almost silently, except when there are more violent clashes, usually localized.

In 2014, the illegal market generated R$100 billion, meaning that legal Brazil no longer received taxes and other taxes, and created formal jobs. Last year, this mountain of illegal money reached an incredible R$473 billion in total losses (the R$326.3 billion already mentioned, subtracted from 15 economic segments, plus R$146.8 billion in estimated tax evasion).

In other words, in a simple calculation, the movement of smugglers and counterfeiters represented 3.7% of Brazil's GDP (Gross Domestic Product) last year. The economic and financial aspects are therefore already extremely relevant, but there is more. Counterfeit medicines are health threats that, at best, are placebos, products without any effect.

Electronic devices and equipment have no quality, guarantee or technical assistance. Illegal alcoholic beverages often use methanol, industrial alcohol, which can cause blindness and kidney failure. Furthermore, and no less important, the profits of smugglers and counterfeiters have a common destination: subsidizing organized crime, which threatens the safety and lives of Brazilians.

With illegal resources, criminals buy weapons, vehicles and hiding places that finance other crimes. Anyone who cares about health, quality of life, safety and economic prosperity should never buy illegal products.