Amazon Says No To Removing Counterfeit Product Listings

Consumers easily deceived, manufacturers and retailers crushed.

October 19, 2017, Los Angeles, CA – As Amazon slugs its way to retail dominance, it is leaving consumers vulnerable to deceptive and unsafe counterfeit goods, and destroying legitimate manufacturers.

The Counterfeit Report®, a consumer advocate and industry watchdog, sent formal infringement notices authorized by the trademark holders to Amazon for 19,129 counterfeit items offered on Amazon websites just this year, and audited Amazon's response. Some notices were often resent over a dozen times for weeks, and yet fake products still remain. Manufacturers simply do not have the time and resources to deal with the obstructions presented by Amazon, nor can they suffer the consequences and financial devastation from lost sales and reputation damage incurred from Amazon’s counterfeit practices.

Amazon operates 13 websites worldwide (e.g. amazon.com, amazon.fr, amazon.co.uk, etc.) and makes about $2.6 billion in net income.

Amazon utilizes a crafty approach to avoid removing counterfeit listings claiming "Your trademark must be in registered status in [each country the item is sold in]," ignoring their own counterfeit policy^*. Clever, but while Amazon may remove the fake item on one Amazon website, the same product listing may be found on Amazon's other global websites and easily purchased. The Counterfeit Report did exactly that - purchasing dozens of inarguably fake items, often from the same seller, on Amazon's various global websites.

Amazons practices are not confidence builders;

• Swiss watch company Swatch (Longines, Omega and Blancpain) scrapped selling on Amazon when Amazon refused to “proactively police its site for counterfeits and unauthorized retailers.”
• Sandal maker Birkenstock pulled its products from Amazon in protest of the continued presence of fakes.
• The National Football League and Major League Baseball imposed bans on selling goods via third-party marketplaces over concern of fakes on Amazon.
• Apple reported that 90% of Apple® products it purchased directly from Amazon were counterfeit.
• Amazon normally does not notify buyers they purchased a counterfeit, dangerous or potentially deadly product.
• Amazon seller profiles do not indicate punitive action by Amazon for counterfeit sales. Sellers may remain and continue selling despite repeated counterfeit complaints, even sellers with over 50 complaints from The Counterfeit Report.
• While Amazon was initiating lawsuits against two Amazon counterfeit sellers, sharply contrasting activity was occurring in the background. Amazon argued and won a U.S. Appeal's Court decision to disavow itself from any responsibility for 'offering to sell' counterfeits products.

Buyers should be very wary of purchasing any trademarked on Amazon item unless it comes directly from the manufacturer or authorized retailer. Counterfeiters and dishonest sellers are very good at creating visually deceptive products, packaging, holograms, certification labels and documentation that easily deceive consumers. Even if removed from Amazon, counterfeit sellers can easily return and sell under new accounts.

“In Amazon's quest to be the low-cost provider of everything on the planet, the website has morphed into the world's largest flea market — a chaotic, somewhat lawless, bazaar with unlimited inventory” says a recent CNBC report.

Companies that facilitate criminal activity and profit from dishonest sales which impact consumer safety, jobs and public trust create a public perception of deception and impunity. However, their reputation damage is only a small part of the problem: the value of counterfeit and pirated goods is forecast to grow to $2.8 trillion, and cost 5.4 million net job losses¹ by 2022, while manufacturer's brand integrity is tarnished or destroyed.

^* Editor’s Note:
The law and Amazons illusory policy claim; "The sale of counterfeit products, including any products that have been illegally replicated, reproduced, or manufactured, is strictly prohibited" are clear, but not Amazons actions. The truth is that counterfeits and replicas can be, and are, easily listed and sold on Amazon. Alarmingly, Amazon is refusing to remove counterfeit listings when notified by the trademark holders.

About 50% of Amazon sales are not from Amazon, but from outside unvetted global sellers, many from China, who can list just about anything they want, including counterfeits. Counterfeit products appear right next to authentic items conveying Amazon’s endorsement, and the illusion the products are from Amazon. Consumers don't know they have a very real possibility of receiving visually indistinguishable counterfeit goods from unknown and unvetted global sellers. Some can be dangerous or deadly, yet Amazon still receives a transaction fee on each sale.

Footnote:
¹ THE ECONOMIC COSTS OF COUNTERFEITING AND PIRACY
The report was prepared for The International Chamber of Commerce (ICC BASCAP) and The International Trademark Association (INTA)
January 2017
Frontier Economics, Ltd.