New York: Amazon incorporation has been under constant pressure from shoppers, customers, brands, and lawmakers to crack down on counterfeits on its website. It has blocked more than 10 million suspected phony listings in 2020 before any of its offerings could be sold.
In 2019, the corporation has released its first report on its anti-counterfeiting efforts since it announced new tools and technologies 2019. The blocked phony listings last year were up about 67% from the year before.
The company said that the number of counterfeits attempting to sell on-site rose as scammers tried to take advantage of shoppers who were purchasing more online during the global pandemic. Hence to safeguard its customers it initiated all needed moves.
Amazon has been fighting the issue for several years. But in 2019, it got serious and unbearable and started to warn investors in government filings that the sale of phony goods poses a risk to the company and its image. Brands may not place goods for sale on the site if they know fake versions are being offered. And knocking off all to secure the trust of its customer on Amazon.
The sources say that the counterfeits get their products on Amazon via a third-party marketplace, where sellers can list their items directly on the website. In addition, it has currently 2 million counterfeit products sent to warehouses in 2020 before they could be sold further.
The company’s efforts as lawmakers are looking at ways to reduce the issues. Two senators, Bill Cassidy of Louisiana and Dick Durbin of Illinois, both the Democrats, re-introduced a bill in 2021 as INFORM Consumers Act. It would need third-party sellers to be verified and to disclose their names and address to shoppers. The bill was introduced in 2021 but wasn’t voted on.
Amazon and smaller online stores such as eBay and Etsy opposed the bill for reasons including the concern that people from starting a small business and selling their products online. But groups that represent the physical retailers such as Home Depot and Lowe’s support it because they say it is playing the whole market and retailers already make sure their stores are free of fakes.
The company said that it is spending more than 700 million dollars in 2020 on its anti-counterfeiting efforts and a 10,000 person workforce is working on it to resolve it sooner. It is also filing joint losses with brands including one earlier this year with Salvatore Ferragamo against counterfeiters who were selling knock-offs of the high-end brand’s belts on the website.