The Hidden Costs of Counterfeit Power Cords: A Risk to Your Business


In an era where reliability and safety are paramount, the rise of counterfeit power cords is an alarming trend. These seemingly harmless components can pose severe risks to your business, affecting everything from operational efficiency to employee safety. This post aims to shed light on the hidden costs and risks associated with counterfeit power cords.

The Financial Impact

Revenue Loss

Counterfeit products result in an estimated $250 billion in annual revenue loss*. With such a staggering figure, the financial implications are far-reaching, affecting businesses, consumers, and even the job market.

Job Loss

Counterfeit electrical products are responsible for an estimated 750,000 job losses per year* in the United States. This not only affects individual livelihoods but also impacts the economy on a larger scale.

Downtime Costs

For businesses running data centers, downtime can cost up to $7,900 per minute*. When counterfeit cords fail, the resultant downtime can lead to significant financial loss.

The Risks

Fire Hazards

One of the most immediate dangers of counterfeit cords is the risk of fire. Poorly manufactured cords can overheat, leading to fires that can cause property damage and endanger lives.

Electrical Shock

Inferior materials and poor construction can also result in electric shocks, posing a risk to anyone who comes into contact with the cords.

Operational Disruption

Aside from physical risks, operational downtime due to counterfeit cords can affect customer experience, leading to a loss of trust and long-term revenue.

How to Mitigate the Risks

Verify Suppliers

Always purchase power cords from verified and reliable suppliers. Look for certifications and compliance markers to ensure you're buying a genuine product.

Regular Inspections

Conduct regular inspections of all electrical components, especially those that are critical to your operations. This can help in identifying faulty products before they cause problems.

Employee Training

Educate your employees about the risks associated with counterfeit electrical products and how to identify them.


Counterfeit power cords present a multi-faceted risk that goes beyond financial loss. By being vigilant and implementing preventive measures, businesses can protect themselves from the hidden dangers that these products pose.

*The Park Place Economist, Volume XVII , Kevin Lewis