Eat This Barcode: The Many Ways Labels Defend Against Fraud

In April 2023, long-time supplement manufacturer NOW Foods uncovered a troubling discovery: counterfeit versions of their products had infiltrated Amazon’s marketplace. It wasn’t obvious at first—subtle errors like missing UPC codes and slightly off-colored caps tipped off observant customers who then alerted the company. Testing confirmed their fears. The counterfeit capsules, which looked legitimate on the outside, contained nothing but rice flour. Even worse, some samples showed trace contamination of sildenafil (yeah, that sildenafil), a pharmaceutical ingredient not included in any authentic NOW product.

This was more than just a financial hit; it was a direct threat to their reputation. For decades, NOW Foods had built trust with consumers by delivering reliable, high-quality supplements. Now, that trust was at risk. If these fakes caused harm or simply failed to deliver the promised health benefits, customers wouldn’t just blame the counterfeiters—they’d blame NOW Foods.

Facing these dangers head-on, NOW Foods implemented swift measures. They reported the fakes to Amazon, the FDA, and even Homeland Security, prompting a series of take-downs and buyer notifications. But they didn’t stop there. NOW ramped up its quality surveillance programs, publicly shared tips on spotting counterfeit products, and began exploring advanced security features for their packaging. Through a combination of vigilance, proactive education, and improved labeling techniques, the company safeguarded its reputation and reassured its loyal customers.

Protecting Your Brand: Solutions You Can Count On

NOW Foods’ experience highlights a critical truth: no business is too established—or too small—to be targeted by counterfeiters. But it also underscores the importance of a multi-layered labeling approach. Relying on a single method is rarely enough; counterfeiters are resourceful, adapting to overcome one barrier at a time. By combining visible deterrents, traceable features, and hidden security elements, businesses can create a powerful defense.

Innovative solutions like edible barcodes have started to gain attention as a promising line of defense. These microscopic, food-grade tags are embedded or engraved directly into products. Invisible, tasteless, and safe for consumption, these tiny barcodes carry unique digital signatures that can be scanned with a smartphone to confirm authenticity. By using edible barcodes, brands can turn every individual pill, food, and liquids into an unforgeable “ID card.”

While this cutting-edge technology offers a glimpse into the future of fraud prevention, it’s not the only path forward. Many businesses are finding success by taking a layered approach that incorporates multiple security measures. For those who prefer alternatives or want to bolster their current strategies, a variety of proven tactics can still offer strong, reliable protection:

Holographic Seals: A Visual Check for Authenticity

Holographic seals don’t just look appealing—they send a strong message that a product is genuine. Their unique, shimmering designs are notoriously difficult to replicate convincingly. For companies like NOW Foods or Host Defense, adding a hologram provides instant reassurance to customers and distributors alike.

Why it works:

• Holograms offer a quick visual cue that’s easy for anyone to verify. 
• The intricate designs are challenging and expensive for counterfeiters to duplicate. 
• They create a clear point of differentiation, making it obvious which product is legitimate.

QR Codes and Serialization: Track, Trace, and Verify

When visual deterrents aren’t enough, trackable identifiers like serialized QR codes or barcodes add another layer of protection. Each item is given a unique code that customers or inspectors can scan to confirm its authenticity. Fungi Perfecti, maker of Host Defense mushroom supplements, found that vigilant monitoring and clear labeling helped them counter a wave of counterfeit products on online marketplaces. QR codes could have streamlined the verification process, allowing both consumers and retailers to instantly confirm which product was authentic.

Why it works:

• QR codes are widely understood and easy to scan. 
• Serialization allows you to trace individual items through the supply chain. 
• Real-time tracking helps spot counterfeit patterns before they spread widely.

Tamper-Evident Packaging: Reassurance You Can See and Feel

Sometimes the simplest solutions are the most effective. Tamper-evident seals or shrink bands immediately tell customers if a product has been opened or altered. They not only protect the product but also provide visible reassurance that the contents are safe.

Why it works:

• Customers can instantly see if a package has been tampered with. 
• Tamper-evident seals discourage counterfeiters from reselling fake or altered goods. 
• They offer a straightforward way to strengthen consumer trust.

Invisible Markers: A Hidden Line of Defense

Hidden features, such as UV-sensitive inks or micro-markers, add a covert layer of security. These elements aren’t visible to the naked eye, making it much harder for counterfeiters to detect and replicate them. Fuse Chicken, a small company that battled counterfeit charging cables, would have greatly benefited from incorporating such hidden markers. By giving their distributors and retailers the tools to confirm authenticity using specialized equipment, they could have quickly distinguished real products from fakes.

Why it works:

• Counterfeiters are less likely to detect or replicate hidden security measures. 
• Invisible markers provide an additional layer of verification beyond what the customer sees. 
• They allow distributors and inspectors to confidently confirm authenticity.

Beyond labeling solutions

There are additional proactive steps that can strengthen your brand’s position against fraud:

1. Selling Through Different Channels:

Expanding your distribution network beyond a single major platform can reduce reliance on a single revenue source and help mitigate risk. By partnering with trusted retailers, launching your own direct-to-consumer store, or selling through specialized channels, you gain more control over your product’s journey. Companies like Fuse Chicken, which initially relied heavily on Amazon, learned to diversify after counterfeiters disrupted their primary sales channel. This not only improved security but also restored a measure of control and trust.

2. Protecting Intellectual Property (IP):

Counterfeiting often starts with a brand’s IP being compromised. Registering trademarks and securing patents in key markets is a crucial preventative step. Brush Hero’s founders, for example, came to understand the importance of IP protection after counterfeit versions of their product surfaced on multiple online platforms. Early and thorough IP registration, combined with constant monitoring of e-commerce platforms, can make it easier to take swift legal action when counterfeits appear.

3. Educating Customers:

Sometimes your customers are your first line of defense. Offering clear guidance on how to identify authentic products—and where to buy them—can help prevent counterfeit sales. Kylie Cosmetics leveraged Kylie Jenner’s massive social media presence to warn customers about fake products, showing them exactly where to shop and how to spot fakes. This transparency not only helps protect your customers but also strengthens their trust in your brand.

A Layered Approach: Combining Strengths for Stronger Protection

No single solution can keep counterfeiters at bay. The most effective strategy is a layered approach. By combining holographic seals for instant recognition, QR codes for traceability, tamper-evident packaging for visible assurance, and invisible markers for covert security, businesses can build a comprehensive defense.

Consider the experiences of companies like NOW Foods, Host Defense, Fuse Chicken, and Brush Hero. Each faced serious counterfeit threats, and each found that taking proactive measures—from enhancing packaging to improving supply chain visibility to protecting their IP—made a significant difference. A layered labeling strategy doesn’t just protect products; it protects trust. And for any business, trust is its most valuable currency.