Amazon’s Anti-Counterfeit Programs

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Amazon’s Anti-Counterfeit Programs The threat of counterfeit goods on Amazon has been gaining more attention in recent years. Counterfeiters have been selling illegally imitated products while applying sophisticated tactics, including fake reviews and discounted prices. In a 2020 Congressional antitrust hearing, Amazon’s CEO Jeff Bezos faced legislators and answered questions about counterfeits on the Amazon platform. Congressman Hank Johnson, a Democrat from Georgia, asked Bezos why Amazon does not do more to fight counterfeits. He added, “Amazon has said it’s fixing its counterfeit problem, but counterfeiting seems to be getting worse, not better.” He also said that “Amazon acts like it’s not responsible for counterfeits being sold by third-party sellers on its platform“. He added, “we’ve heard that Amazon puts the burden and cost on brand owners to police Amazon’s site, even though Amazon makes money when a counterfeit good is sold on its site.” Bezos outlined the steps Amazon has taken to eliminate counterfeits. He explained that counterfeits damage consumer trust and added that counterfeits are “bad for customers” and “bad for honest third-party sellers.” He said that Amazon works to prevent counterfeits on its platforms through a team of Amazon employees and various systems. The burden to identify intellectual property (IP) infringements, launch complaints, send takedown notices, and in some cases, delist counterfeits, still lies mainly on the brands. Amazon has a no-counterfeits policy, but since it operates as an intermediary between buyers and sellers, it is protected under the intermediary shield. However, when made aware of illegal third-party infringements, it must act to end the violation.

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