Amazon Counterfeit Practices Put Consumers at Risk

Dangerous fake products sold on Amazon

February 16, 2017, Los Angeles, CA – Amazon has a counterfeit problem. Amazon claims “Customers trust that they can always buy with confidence on Amazon.com” - but that’s not true.

At issue is Amazon’s illusory claim; “The sale of counterfeit products, including any products that have been illegally replicated, reproduced, or manufactured, is strictly prohibited.” But the fact is that counterfeit and replicas can be, and are, sold on Amazon.

For example, The Counterfeit Report, a consumer advocate and watchdog, identified over 27,200 counterfeit items on Amazon and reported 14,535 products to Amazon for listing removal as the trademark holder’s agent. The number actually sold to consumers is not reported by Amazon. The Counterfeit Report also purchased and received dozens of products from Amazon Fulfillment and Amazon Marketplace sellers, but never received an authentic item.

Even more alarming was Amazon’s response, or lack thereof, to reports of counterfeit products on its website. Amazon claimed dozens of the infringing product listings were removed, when in fact they were not – even after repeated notifications to Amazon management.

Counterfeit products are replicas of real products, designed to take advantage of the superior value and reputation of the real product. Amazon is proving to be an ideal platform to distribute counterfeit goods - an activity that is profitable, difficult to track and widely unpunished. The move is drawing an avalanche of counterfeits from un-vetted global sellers, and strong criticism from legitimate manufacturers.

Counterfeit products are visually deceptive and may be dangerous or even deadly. Consumers are best advised to avoid trademarked items from online sellers and buy directly from the manufacturer or authorized retailers.

Could you identify these counterfeit products listed on Amazon?

(Photo: The Counterfeit Report® - left to right)

1. Tiny microSD® computer memory cards are used in cell phones, cameras and laptops.  Authentic microSD cards bear the microSD trademark which owned by SD-3C, LLC, who licenses its use to authentic, conforming products. Memory on counterfeit cards is usually not the capacity of what is published on the card, and the fake items may fail. When that happens, you are likely to lose your data, images, and damage your equipment. None of the items shown above from Amazon are authentic. There is no such product as a 64GB microSDHC® card -- an obvious fake. Many infringing variations of the fake products remain listed.
2. U.S. based Fullips, LLC is a family owned business producing very popular beauty and cosmetic products under the registered Fullips® trademark. Unscrupulous counterfeiters will produce anything to deceive consumers and make a fast dollar, including the counterfeit Fullips product shown. Almost visually indistinguishable from the authentic product, consumers are easily deceived into purchasing a poor quality counterfeit that may contain dangerous lead and other suspect ingredients.
3. Federal, State and local laws regulate the sale, purchase, possession and display of counterfeit badges, and of course common sense. Replica current issue U.S. Secret Service, FBI and police badges are available on Amazon to terrorists, child predators and other criminals. Notices to Amazon management of the alarming practice have been ignored. 
4. Composite Resources Combat Application Tourniquet® (C-A-T®) has been supplied to the U.S. Military, police, first responders, and the public worldwide for the past decade. Counterfeit versions of the C-A-T tourniquet have catastrophically failed during actual life-saving applications. The Counterfeit Report reported 1,595 infringing items to Amazon, yet infringing items continue to be listed as well as non-FDA registered knockoffs of the critical medical device.
5. Counterfeit Apple® USB Adapters have caused one death, fires, injuries and equipment damage but are common on Amazon. Apple recently claimed that 90% of Apple Chargers it purchased from Amazon Direct were fake.
6. Consumers wouldn’t suspect AutoMeter’s popular Sport Comp-II tachometer would be counterfeited, but it is. A sluggish or inaccurate tachometer may result in damage, or complete destruction, of your vehicle's engine. This poor quality fake was purchased by The Counterfeit Report on Amazon for just a fraction of the authentic items price – an immediate identifier of a fake.   
7. DrewTech's MongoosePro interface cable is used by vehicle technicians and dealers to program vehicle computers including braking, emission and safety equipment. Counterfeit Mongoose® products may severely damage your vehicle, and install malware on your computer. The authentic product is not made in purple - an obvious fake.
8. Vans® does not make iPhone 6 cases – but they are common on Amazon. Counterfeit product sales support terrorists, organized crime and other criminals.

Many Amazon consumers do not recognize that Amazon listings present three distinct global product outlet channels, including 2-million Marketplace sellers who can ship counterfeit products, which are never inspected by Amazon, from anywhere in the world;

1. Amazon Direct (a direct retailer “Sold and Shipped by Amazon”)
2. Amazon Fulfillment (provided to Amazon by a third-party for warehousing and shipping)
3. Amazon Marketplace (sold and shipped directly from third-party sellers)

Despite manufacturer complaints and listing removals, Marketplace and Fulfillment sellers often repeatedly re-list counterfeits which may be dangerous or even deadly - despite repeated notifications to Amazon. Additionally;

• Deceived Amazon buyers are never told by Amazon they received a fake or dangerous item and may be entitled to a refund.
• There may be no indication in Amazon seller profiles of a counterfeit sales history, despite some sellers having dozens of counterfeit listings identified and removed by The Counterfeit Report.
• Amazon removes counterfeit feedback left by buyers warning consumers of the fake or dangerous products.

E-Commerce giant Amazon is no stranger to allegations of selling counterfeit goods and not cracking down on the fake items listed on its website. Amazon allows the sale of millions of dollars of counterfeit goods to unsuspecting consumers, while collecting transaction fees on each sale.

Companies that facilitate criminal activity, and benefit from the proceeds of dishonest actions that impact jobs, consumer safety and public trust create a public perception of deception and impunity. However, reputation damage is only a small part of the problem: counterfeiting supports criminals and terrorists, costs U.S. manufacturers over $250 billion and U.S. workers over 750,000 jobs, while manufacturer's brand integrity is tarnished or destroyed.

Some issues are debated – and decided – in the court of public opinion where consumers will decide if Amazon must provide honest services and present information in a clear, truthful and professional manner. Other issues will be decided in a court of law.

Amazon can adopt real and effective solutions to end the counterfeiting problem that it enables. Will it?