Amazon Correspondence Reveals Shocking Corporate Ethics

June 13, 2018, Los Angeles, CA – Amazon would like consumers to have confidence that Amazon (NASDAQ: AMZN) provides an honest, safe and ethical place to buy name-brand goods – and only authentic name-brand goods - but that's not true. Amazon is a direct retailer of counterfeit goods, and enables and facilitates U.S. and cross-border scam artists to freely unload counterfeit merchandise on Amazon.

Amazon communications are in sharp contrast to Amazon's often cited, but illusory, counterfeit policy: "The sale of counterfeit products, including any products that have been illegally replicated, reproduced, or manufactured, is strictly prohibited." In reality, counterfeit goods appear right alongside authentic items, conveying Amazon's endorsement. Amazon also touts that "More than 40,000 brands are enrolled in [Amazon's] Brand Registry and are using our free service to better protect their brand." Why? If sellers are properly vetted or authorized by the manufacturer before listing counterfeit items, Amazon wouldn't be facing a counterfeit crisis.

The Counterfeit Report, an industry watchdog and consumer advocate, found 54,000 counterfeit items on Amazon's websites, and removed 35,520 of the fakes on behalf of the trademark holders. The Counterfeit Report encountered significant resistance from Amazon, and identified alarming contrasts and unethical business practices from thousands of arbitrary, inconsistent and even absurd email responses from Amazon and its Executive Team.

Amazon's business practices and correspondence reveal;

• Amazon will not notify buyers they received a fake. In fact, Amazon responded to an infringed right holder request: "Amazon will not contact the buyers, once the buyers identify that it is a fake product and write back to Amazon, they will be automatically refunded." Of course, how will the buyer know?
• While Amazon was publicly 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. Counterfeits, trademarks, and copyrights became the right holder's problem, and when there is an outcry over the infringements, Amazon claims it is simply a venue and immune from prosecution and liability.
• Amazon's claim "We remove suspected counterfeit items as we become aware of them, and we permanently remove bad actors from selling on Amazon" is patently false. For example, The Counterfeit Report purchased over 30 inarguably fake current issue FBI, Secret Service, Police Badges and ID from the same seller over a 1-year period. Despite complaints, the items, and others, remain on Amazon.
• Amazon will not disclose counterfeit seller's identities to infringed right holders: "I am very sorry however, I will not be able to provide the seller's information as it is confidential " writes Amazon.
• Amazon's counterfeit policy claims; "If you sell counterfeit goods, we may immediately suspend or terminate your selling privileges and destroy inventory in our fulfillment centers without reimbursement," yet Amazon writes to an infringed book publisher who received copies of their own fake books (Fulfilled by Amazon); "Amazon will not be able to help you with confiscating the [fake] books as it is a legal process. In this case, I request you to get in touch with your legal advisor and take the necessary actions."
• After a counterfeit listing was removed, consumers could still purchase the exact same counterfeit item, with the same listing ID on other Amazon global websites. Amazon repeatedly uses a crafty excuse requiring that; “Your trademark, patent, or design must be in "registered" status in the country or territory were the infringement is happening." The counterfeit items purchased by The Counterfeit Report were not from the listing countries, but from China or other global locations.
• Amazon is banning buyers for initiating too many returns or claims. Amazon even notified The Counterfeit Report it was ending refunds for its counterfeit test purchases "Due to the high percentage of claims filed, we will be unable to process future claims for orders placed with our third party sellers." The Counterfeit Report has purchased hundreds of counterfeits from Amazon to identify counterfeit sellers and by extension, protect Amazon buyers.

Amazon's shady counterfeit practices have not escaped the attention of federal investigators. The U.S. Government Accountability Office ("GAO") recently conducted an undercover investigation of e-commerce counterfeit goods sales. The GAO reported that about 50% of the items it purchased from e-commerce websites, including Amazon (AMZN), were counterfeit.

Amazon still receives a transaction fee for each fake sold, profits soar, and CEO Jeff Bezos now ranks on Forbes wealthiest persons list.

Buyer beware.