Amazon plans to provide law enforcement with more data on counterfeit goods to further crack down on counterfeits sold on its e-commerce website, according to a source familiar with the matter. Amazon is now facing public pressure over how it regulates counterfeit and allegedly unsafe products on its e-commerce platform.
Top brands such as Apple and Nike have long been unhappy with the issue of counterfeits, and some companies are reluctant to sell their products through Amazon.
In the past, the world’s largest e-commerce company notified the authorities of counterfeiters when it thought it had enough information to allow the police to pursue the crime. Now, Amazon plans to disclose business information to European and U.S. federal authorities every time it confirms that fakes have been sold to customers, increasing the frequency and number of reports to law enforcement, according to the person, who spoke on condition of anonymity.
It’s unclear why Amazon will launch such a program at this time. In 2018, Amazon reached an agreement with Apple to clean up products sold on the shelves by merchants not authorized by the latter. Amazon has filed a lawsuit against counterfeiters and launched a fake cleaning tool for brands, contradicting the company’s previous move to let merchants sell more products to boost profits.
In recent weeks, Amazon has held meetings with government authorities and related organizations to discuss its new fake reporting strategy and how the company can facilitate its enforcement actions, the source said. It has been hoped that Amazon will use its vast data to help law enforcement catch criminals.
Once Amazon confirms that a business is selling fakes, it will first close the seller’s account and report the name, company name, product and contact information to the authorities after the account owner fails to successfully appeal through Amazon’s typical process, according to the source.
In a memo last April, U.S. President Donald Trump ordered a crackdown on the sale of counterfeit goods through online markets. At the time,media reported that the Trump administration had also considered adding some Of Amazon’s sites to the “notorious market” list last year. Global trade in pirated and counterfeit goods is as high as $500 billion a year, according to an estimate cited in Mr. Trump’s memo.