Nike, NBA, SanDisk & FBI All Victims Of Amazon & eBay Counterfeits
Legal loopholes allow e-commerce giants to profit selling counterfeits to deceived consumers.
January 17, 2018 - Los Angeles, CA – Counterfeit products from major manufacturers are being sold on eBay and Amazon. Why? Because current laws make it extremely difficult for manufacturers and trademark holders to take action against these online giants. That good online deal may not be what you think - one-third of online shoppers received a fake last year1 from online sellers peddling an estimated $1.7 trillion in counterfeit goods.
Everyone knows counterfeiting is illegal, but a huge U.S. legal loophole exempting liability2 allows Amazon and eBay to enable and facilitate the sale of an inexhaustible cesspool of counterfeits3, most of which come from China. While Amazon and eBay are maximizing profits, consumers are being deceived into buying dangerous, deadly and often visually indistinguishable counterfeit goods.
Both Amazon and eBay both have illusory policies prohibiting the sale of counterfeit, fake or replica products, yet the items remain and enforcement is completely arbitrary. Listings may remain for weeks until inventory is exhausted, or sellers simply relist the counterfeit items.
The problem isn’t just the well-known fakes; watches, shoes and handbags, but a vast counterfeit universe of auto parts, cosmetics, drugs, electronics, sporting goods, toys, and much, much more. Consumers can see the authentic and deceptive counterfeits (including Nike, NBA, SanDisk & FBI fakes) on The Counterfeit Report® website, a popular consumer advocate and industry watchdog.
The Counterfeit Report identified and purchased thousands of counterfeit name-brand products from the e-commerce giants, and issued infringement complaints, authorized by the right holders, for removal of over 3 million counterfeit items destined for Amazon and eBay consumers. Despite the infringement notifications, the websites continue to engage in alarming and despicable counterfeit sales.
Ironically, the FBI is tasked with investigating counterfeits, however there are hundreds of counterfeit FBI badges and fake ID's on both eBay and Amazon. The Counterfeit Report purchased the fake badges and ID shown below from Amazon and eBay, including the made-to-order FBI ID featuring former Attorney General, Loretta Lynch. The items remain;
(Photo: The Counterfeit Report®)
18 U.S.C. §701. Prohibits the unauthorized reproduction of the insignia on badges and identification cards.
Amazon and eBay are no strangers to allegations of selling counterfeit goods, yet they continue to facilitate criminal activity and profit from dishonest sales which impact consumer safety, jobs and public trust. Lack of enforcement creates 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 losses4 by 2022, while manufacturer's brand integrity is tarnished or destroyed.
Congress and the FBI can act to protect consumers, and consumers can withdraw their support - will they?
Footnotes:
(1) Global Online Shopping Survey 2017 – Consumer Goods
Prepared by: Clarivate Analytics for MarkMonitor® Inc. November 2017
(2) In a devastating blow to manufacturers and consumer protection, the U.S. Court of Appeals upheld a U.S. District Court decision by Judge Ricardo S. Martinez excusing Amazon (NASDAQ: AMZN) from liability in the sale of counterfeit items on its website. (Milo & Gabby, LLC. v. Amazon.com, Inc.)
(3) Wade Shepard, "As Amazon And eBay Flood With Illegal Goods From China, Beijing Cracks Down On Foreign E-Commerce"
Forbes (Nov. 22, 2017), available at: https://www.forbes.com/sites/wadeshepard/2017/11/22/as-amazon-and-ebay-flood-with-illegal-goods-from-china-beijing-cracks-down-on-foreign-e-commerce/#7223f1604dfd
(4) THE ECONOMIC COSTS OF COUNTERFEITING AND PIRACY
The report was prepared for The International Chamber of Commerce Business Action to Stop Counterfeiting and Piracy unit (ICC BASCAP) and The International Trademark Association (INTA)
January 2017
Frontier Economics, Ltd.
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