Amazon “seized and destroyed” 2 million counterfeit products in 2020

May 12, 2021

Counterfeiting is a longstanding problem on Amazon. Other problems on Amazon that harm consumers include the sale of dangerous products, fake reviews, defective third-party goods, and the passing of bribes from unscrupulous sellers to unscrupulous Amazon employees and contractors. One US appeals court ruled in 2019 that Amazon can be held responsible for defective third-party goods, but Amazon has won other similar cases. Amazon is again arguing that it should not be held liable for a defective third-party product in a case before the Texas Supreme Court that involves a severely injured toddler.

Labels for Mulberry, Prada, Ted Baker, DKNY, Stella McCartney, Burberry, Valentino and UGG were also seized court documents show.
“The defendant was the sole person found in the shop”, had the keys and was “clearly selling the goods,” Mr Bonney said.
Third-party sellers can also ship products directly to consumers instead of using Amazon’s shipping system. The 2 million fakes found in Amazon fulfillment centers would only account for counterfeit products from sellers using the “Fulfilled by Amazon” service.
The counterfeit problem got worse over the past year. “Throughout the pandemic, we’ve seen increased attempts by bad actors to commit fraud and offer counterfeit products,” Amazon VP Dharmesh Mehta wrote in a blog post yesterday.
Counterfeiting is a longstanding problem on Amazon. Other problems on Amazon that harm consumers include the sale of dangerous products, fake reviews, defective third-party goods, and the passing of bribes from unscrupulous sellers to unscrupulous Amazon employees and contractors. One US appeals court ruled in 2019 that Amazon can be held responsible for defective third-party goods, but Amazon has won other similar cases. Amazon is again arguing that it should not be held liable for a defective third-party product in a case before the Texas Supreme Court that involves a severely injured toddler.
Amazon tries to reassure legit sellers
Amazon’s new report was meant to reassure legitimate sellers that their products won’t be counterfeited. While counterfeits remain a problem for unsuspecting Amazon customers, the e-commerce giant said that “fewer than 0.01 percent of all products sold on Amazon received a counterfeit complaint from customers” in 2020. Of course, people may buy and use counterfeit products without ever realizing they are fake or without reporting it to Amazon, so that percentage may not capture the extent of the problem.
Amazon’s report on counterfeits describes extensive systems and processes to determine which sellers can do business on Amazon. While Amazon has argued in court that it is not liable for what third parties sell on its platform, the company is monitoring sellers in an effort to maintain credibility with buyers and legitimate sellers.
Amazon said it “invested over $700 million and employed more than 10,000 people to protect our store from fraud and abuse” in 2020, adding:
“This is an escalating battle with criminals that attempt to sell counterfeits, and the only way to permanently stop counterfeiters is to hold them accountable through litigation in the court system and through criminal prosecution,” Amazon also said. “In 2020, we established a new Counterfeit Crimes Unit to build and refer cases to law enforcement, undertake independent investigations or joint investigations with brands, and pursue civil litigation against counterfeiters.”
Amazon said it now “report[s] all confirmed counterfeiters to law enforcement agencies in Canada, China, the European Union, UK, and US.” Amazon also urged governments to “increase prosecution of counterfeiters, increase resources for law enforcement fighting counterfeiters, and incarcerate these criminals globally.”
Stricter seller-verification system
Amazon said it had a “new live video and physical address verification” system in place in 2020 in which “Amazon connects one-on-one with prospective sellers through a video chat or in person at an Amazon office to verify sellers’ identities and government-issued documentation.” Amazon said it also “verifies new and existing sellers’ addresses by sending information including a unique code to the seller’s address.”
Most new attempts to register as a seller were apparently fraudulent, as Amazon said that “only 6 percent of attempted new seller account registrations passed our robust verification processes and listed products.” Overall, Amazon “stopped over 6 million attempts to create a selling account before they were able to publish a single listing for sale” in 2020, more than double “the 2.5 million attempts we stopped in 2019,” Amazon said.
https://arstechnica.com/tech-policy/2021/05/amazon-seized-and-destroyed-2