Amazon is expected to face huge extras over new U.S. anti-counterfeiting policies

The new customs policy, signed by the Department of Homeland Security, is expected to significantly increase Amazon’s operating costs. The new Customs and Border Protection framework will have the authority to regulate counterfeit commodity trading platforms, meaning U.S. e-commerce companies such as Amazon could face significant fines if they continue to operate under the current model.

Amazon is expected to face huge extras over new U.S. anti-counterfeiting policies

Amazon has obvious problems selling counterfeit goods, but so far, Amazon says it’s just a platform, not a seller, and has escaped responsibility. Under the new rules, e-commerce and its warehouse centers will be legally liable for holding goods that are not sold to specific customers and will be linked to article 321 enforcement orders. This could mean “civil compensation, fines and injunctions” and the regulations also require companies to destroy potentially suspicious goods.

Amazon’s profit margin is a staggering 3.8 percent, but the u.S. government’s new anti-counterfeiting policy is expected to have a negative impact on its finances.

Amazon’s share price fell on the release of the new rules.