Amazon and Prada’s Successful Battle Against Counterfeiting; Here’s Everything You Need to Know
Amazon and Prada recently united against counterfeiters
Amazon has joined hands with luxury brand Prada in efforts to tackle counterfeiting. The partners gave information as well as evidence to Chinese Law Enforcement which has led to a counterfeit seller's guilty plea. Statements from the two companies revealed that a counterfeiter has been sentenced to three years in prison by a Chinese court and even ordered a $25,000 fine. Amazon's Counterfeit Crimes Unit (CCU) first spotted the defendant's counterfeiting in 2021 after which they provided a criminal referral to the regional Chinese enforcement agency following internal investigations.
"This successful result would not have been possible without the collaboration with law enforcement and luxury players such as the Prada Group. We are grateful for their support and look forward to continuing to take the fight against counterfeiters," reads Amazon's release. This case is unique as the verdict was majorly based on the evidence of overseas counterfeit sales records and fulfillment center inventory records outside of China and has nothing to do with physically seized items which is very rare in these lawsuits.
Prada Group, Amazon, and Microsoft's efforts to stop the sales of counterfeit goods
The Pradas Group collaborated with Amazon's CCU to help give evidence to Chinese Law enforcement which then resulted in a counterfeiter’s guilty plea to crimes related to the sale of counterfeit luxury products.“The guilty plea is a significant win for Amazon’s CCU, but more importantly, it’s a win for all of those who share our commitment to tackling the industry-wide issue of counterfeiting,” said Kebharu Smith, director of Amazon’s CCU.
"We are firmly committed to eradicating the sale of counterfeit goods to protect our brands and to ensure that our products meet the level of quality, craftsmanship, and care that people expect from us," added Francesca Secondary, Prada Group's general counsel and chief legal officer.
Microsoft on the other hand partnered with India's federal enforcement agency known as the CBI to conduct criminal raids. The operation was supported by joint criminal referrals made by Amazon and Microsoft through joint prosecution agreements in the U.S. and India, as per CSA. In October 2023, CCU filed two more lawsuits against alleged counterfeiters in the ‘hidden links’ scheme, as per the publication.
30% of products sold on Amazon might be counterfeit
Amazon has been battling counterfeit products for a long time now and various reports suggest that almost 30% of the products sold on Amazon may be counterfeit, as per the seller app. It was also reported that almost 10 billion counterfeit products were blocked by the company from entering the U.S. and almost 2 billion fake products were destroyed in the warehouses.
Amazon's internal efforts
Amazon has introduced various programs to assist brands and owners in protecting their intellectual properties. For example, the Amazon Brand Registry enables all sellers to register and also helps them register their trademarks and label each unit with a unique code. Another huge initiative is establishing the CCU which focuses on eliminating fake goods daily.
Repercussions of selling counterfeited products on Amazon
The repercussions can be very severe as the company has been taking strict action to eliminate the problem. Here are some of the things Amazon can do if they suspect any kind of foul play.
Terminating the license to sell: Amazon may suspend or bar the seller from selling any products if they suspect anything.
Remove the listings: The company can remove any listing by any shady sellers from the platform and can bar the seller from relisting.
Seizing your inventory: Amazon can confiscate your inventory and destroy the products if they are in any way fake.
Legal actions: The company can also hold the seller legally responsible for selling fake products on the platform.