Perfumes and cosmetics are currently the most counterfeited products worldwide. Beyond the financial losses for brands, these products pose a public health risk, as they are often manufactured without quality controls and may contain heavy metals, bacteria, or carcinogenic substances. The phenomenon creates significant challenges for consumers, businesses, and institutions responsible for market regulation and oversight.

This article analyzes critical failures in due diligence processes that allow illegal trade to infiltrate supply chains in Latin America. Based on OECD technical reports, it explores how a lack of traceability and reliance on unverified intermediaries expose companies to legal, financial, and reputational risks in 2026.