How does Amazon tackle the sale of counterfeit products?
9 May 2023
Amazon and the problem of counterfeit sales
Amazon is one of the largest e-commerce platforms in the world, and one of the problems this company faces is the sale of counterfeits. For this reason, it is fighting this phenomenon in various ways, including the introduction of strict regulations for sellers who offer fake products on their platform.
Recently, Amazon has partnered with Brother in this area, which incurs losses due to dishonest sellers offering counterfeit cartridges for printers from this manufacturer on the platform. As a result, along with Brother, it filed a lawsuit against 18 individuals suspected of selling counterfeit products in Germany to force them to cease selling counterfeit ink.
How does Amazon combat the problem of counterfeit sales?
Brand Registry Program
Amazon has introduced the Brand Registry program, which allows brands to protect their intellectual property on the platform. With this program, brand owners can more easily protect their logos, names, product descriptions, and other identifying information.
Changes in registration procedures for sellers
Amazon has made changes to the registration procedures for sellers to increase platform security and protect customers from fake products. Now, to sell on Amazon, sellers must verify their identity and provide information about their products, such as barcode and manufacturer details.
Customer protection system
The company has implemented a customer protection system that allows customers to report issues with products they purchased on this platform. If a customer reports a problem with a counterfeit product, the company will take steps to remove the product from the platform and offer a refund to the customer.
Effective tools for detecting sellers of counterfeits
The platform uses advanced tools such as artificial intelligence and machine learning to detect sellers offering fake products. With these tools, Amazon can quickly identify and remove counterfeits.
Dispute with fraudsters is another step towards protecting customers
In February 2023, it was reported that Amazon and Brother International Corporation filed a lawsuit against counterfeit sellers for copyright and trademark infringement. According to reports, at least 18 individuals offered counterfeits of original products.
To increase profits, they impersonated the original brand, misleading customers and harming Amazon's image, while also causing significant financial losses for Brother. Such actions are contrary to the platform's policy, which seeks to protect its customers from counterfeits and maintain a good reputation and trust in the brand.
As part of its actions against the sale of fake products, it undertakes a series of steps, such as:
Verification of sellers – Amazon thoroughly checks the identity and sales history of each seller, which allows for the elimination of dishonest companies.
Warnings and penalties – the company imposes strict penalties on sellers who violate the sales policy. Depending on the severity of the violation, they may face fines, account suspensions, or even removal from the marketplace.
Prevention – the platform seeks to operate preventively by utilizing advanced tools such as automatic systems for detecting irregularities in sales, which enable the swift identification and removal of fake listings.
These actions contribute to increasing customer trust in Amazon and to protecting original brands from fraud and unfair competition. The fight against counterfeits is an important element of the platform's strategy, which cares about the quality and safety of its products as well as good relations with customers and business partners.
Protection for sellers and customers
Through the aforementioned actions, Amazon effectively protects the rights of entrepreneurs selling through this platform. Currently, every marketplace allows sellers from around the world to post listings, which is why the protection of copyright and patent rights is a key task for entities managing sales in e-commerce.
An extremely important aspect is also the elimination of counterfeits from the market that could reach customers convinced they are buying original products. Effective action against counterfeiters is only possible through the collaboration of platforms and sellers.
Happy Selling
Amata Borys-Chudek
Go2Market Crew