Amazon Sees Dip in Sellers Signing up to Sell Counterfeits, Company Says

What’s happening

Amazon is increasing its investments to keep counterfeit products off its site, according to an annual report, as part of its effort to protect consumers from fraudulent products and businesses from counterfeits.

Why it matters

E-commerce has made it easy for counterfeiters to sell bogus goods to millions of people and defraud consumers and legitimate businesses.

According to an annual brand protection report released on Wednesday, Amazon said it increased investment in 2021 to keep counterfeit products off its retail side and saw signs its efforts are working.

The company spent more than $900 million on its anti-counterfeiting programs and employed over 12,000 people in 2021 focused on the problem. That’s an increase from $700 million and 10,000 employees last year. At the same time, Amazon said its automated systems detected and stopped fewer attempts by bad actors to set up stores on the site in 2021 and that one measure, on average, showed fewer flagged instances of brands that turned out to be counterfeits.

Amazon’s increasing investment of money and manpower is necessary, said Mary Beth Westmoreland, Amazon’s vice president of technology.

“Unfortunately, that speaks to the counterfeiting problem not going away,” Westmoreland said, adding, “It’s an industry-wide problem.”

Counterfeiting has plagued e-commerce for years. Online shopping makes it easy for customers to buy products from around the world and for small businesses to find a global market, but it also makes it easy for counterfeiters to sell bogus products to millions of people. As the largest e-commerce platform in the US, Amazon has been criticized by consumer advocates and business groups for exposing shoppers to potentially dangerous counterfeits and harming businesses by providing a platform for scammers.

In addition to hiring AI scientists to quickly identify fraudulent products and shady sellers, Amazon has responded by creating a trademark registry that provides a line of communication with the e-commerce giant and the tools for reporting problems optimized. It has also created a system for brands to suppress offers believed to be counterfeits of their products.

Amazon also sued seller It claims to sell counterfeit products and is asking courts to order them to stop selling on Amazon. In April, Chinese authorities raided a counterfeit warehouse Luxury goods after Amazon and the fashion house Salvatore Ferragamo shared information about the alleged operation.

US lawmakers have tried to legislate against counterfeiting, but Amazon has taken their efforts lukewarmly. The company has agreed the House of Representatives’ version of the INFORM Act, as would Etsy and eBay, which would require e-commerce platforms to verify information about sellers on their websites. But it has opposed the Senate version of the bill, which would risk lawsuits if companies fail to follow a list of best practices.

Amazon has implemented a version of seller verification that requires face-to-face or video sessions with sellers who need to provide identification documents to open online stores selling in the US, UK, European Union, Canada and Japan.

Amazon Sees Dip in Sellers Signing up to Sell Counterfeits, Company Says Source link Amazon Sees Dip in Sellers Signing up to Sell Counterfeits, Company Says

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