Illegal commerce, also known as illicit trade or the black market, refers to the production, movement, and sale of goods and services that are prohibited by law. These activities often involve criminal networks, undermine public safety, weaken the rule of law, and result in significant tax revenue losses for governments. 

Key Characteristics

• Evasion of Regulation: Illegal commerce operates outside official, regulated markets to avoid taxes, quality controls, and other legal requirements.
• Criminal Activity: It often fuels other crimes, such as corruption, money laundering, and organized crime.
• Global Scope: Illicit trade exploits global supply chains and digital platforms, making it a transnational issue that requires international cooperation to address.
• Harmful Impacts: Beyond financial losses, it can harm consumers with unsafe products (e.g., counterfeit drugs), damage the environment (e.g., illegal logging), and violate human rights (e.g., human trafficking). 

Common Examples of Illegal Commerce

Examples of goods and services commonly traded in the black market include: 

• Illegal Drugs: The trade in controlled substances, such as fentanyl, which has significant public health consequences.
• Counterfeit Goods: The production and sale of fake products, ranging from luxury items to pharmaceuticals, estimated to be worth hundreds of billions of dollars annually.
• Human Trafficking: The illegal trade of people for forced labor or sexual exploitation.
• Arms Trafficking: The illegal trade of weapons and ammunition.
• Environmental Crimes: Illicit activities such as illegal logging, fishing, and the trafficking of endangered wildlife.
• Stolen/Pirated Media: The illegal distribution and sale of copyrighted materials like music and movies.
• Illegal Organs Trade: The commercial transaction of human organs for transplant purposes, which is prohibited by the World Health Organization (WHO). 

Legal and Economic Implications

In the United States, various federal laws, such as the Sherman Antitrust Act (which prohibits combinations in restraint of trade) and the Federal Food, Drug, and Cosmetic Act (prohibiting the introduction of adulterated or misbranded products into interstate commerce), are used to combat illegal commerce. 

Despite its illegality, the economic impact is substantial. Some economists estimate that the illegal economy can account for a notable percentage of economic activity, and the proceeds (“black money”) are often subject to money laundering to conceal their origins. 

If you encounter an illegal business practice or scam, you can report it to the Federal Trade Commission(FTC).