Amazon Asking for Law to Change to Allow CBP to Share Suspicions About Counterfeits
Amazon is calling for legislation to allow CBP to share information about suspected counterfeiters with platforms and logistics companies, providing examples of how such information sharing worked to stop counterfeiters. In a just-published policy paper, Amazon said it received a tip from CBP about Champion-branded earbud cases, and "immediately quarantined the counterfeiter’s additional inventory in our fulfillment network and terminated their accounts." The tip led to HanesBrands bringing a civil lawsuit against 13 counterfeiters.
It also said its Counterfeit Crimes Unit told Homeland Security Investigations and CBP about a shipment of fake automotive grilles, and that the information it provided, combined with federal investigative work, "enabled law enforcement to seize eight 18-wheeler truckloads of fake automotive grilles bearing trademarks from several car brands," which were worth millions of dollars. Dharmesh Mehta, vice president for customer trust and partner support, said that in 2020, Amazon had 10,000 employees working to stop fraud and counterfeits, and the company spent more than $700 million fighting these problems.
Amazon said it tried sharing information among e-commerce companies on confirmed counterfeiters, and found that 16% of the sellers blocked at other sites were also trying to sell on Amazon. "These are counterfeiters that other industry participants could have identified and stopped sooner if we had all shared our blocked counterfeiter data with each other. The private sector needs to lead the way in creating a scalable solution for real-time information sharing on confirmed counterfeiters, and we encourage more companies to work with us in building these partnerships in the future," the paper said.
Amazon said that since its Counterfeit Crimes Unit launched in mid-2020, it has partnered with travel accessory company JL Childress, global board game publisher Asmodee, Yeti, GoPro, HanesBrands, Valentino, and Salvatore Ferragamo, and has filed civil litigation against 64 counterfeiters in U.S. courts. Amazon said it has provided evidence that could aid with criminal investigations in the United Kingdom, the European Union, China and the U.S. on more than 250 counterfeiters. But Amazon said that only 32 counterfeiters were charged in 2019 in the U.S., and said, "governments should increase the resources they provide these authorities so they can catch and prosecute counterfeiters."