Amazon announced another lawsuit towards alleged counterfeiters Thursday, a part of the corporate’s ongoing technique to painting a tough-on-fraud picture.
Amazon and J.L. Childress, a vendor of journey gear for folks, are suing 11 alleged counterfeiters, claiming the defendants offered faux J.L. Childress merchandise on Amazon’s market and conspired in coordination with one another. The businesses declare that the knockoffs have been offered on Amazon between 2018 to 2020. The businesses filed the lawsuit over the summer time, and it was unsealed this week.
The third-party sellers “infringed and misused J.L. Childress’ intellectual property” and “willfully deceived and harmed Amazon, J.L. Childress, and their customers, compromising the integrity of Amazon’s stores, and undermined the trust that customers place” within the two corporations, in accordance with the criticism. Amazon and J.L. Childress filed the lawsuit in federal courtroom within the Seattle on Aug. 10.
That very same day, Amazon announced the expansion of its “Project Zero” anti-counterfeit program to seven further international locations. Launched final yr, Mission Zero goals to remove counterfeiting on Amazon’s market by means of product tracing and automation that detects suspicious listings.
In June, Amazon formed an internal “Counterfeit Crimes Unit” bringing collectively former federal prosecutors with investigators and knowledge analysts within the combat towards fraudulent listings. Different Amazon initiatives embody Transparency, which guarantees to remove counterfeits for enrolled merchandise. Amazon has additionally filed a sequence of different lawsuits over counterfeit items in recent times, together with joining Italian luxury fashion brand Valentino to pursue an alleged counterfeiter of the corporate’s Rockstud sneakers.
Counterfeits have been one subject raised in a report by the Home Subcommittee on Antitrust released this month, following a broadly watched hearing with Amazon CEO Jeff Bezos and different tech leaders.
The antitrust report accuses Amazon of permitting counterfeit items to proliferate in its market and utilizing knockoffs as leverage to place strain on third-party sellers. For instance, PopSockets founder David Barnett testified that Amazon solely cracked down on counterfeits after the vendor agreed to buy advertising and marketing companies, in accordance with the report.
“Although it claims to take its counterfeit problem seriously, Amazon’s business model incentivizes it to do less, not more,” the report says. “Because Amazon’s profits increase with the number of sales on the platform, the company has an incentive to turn a blind eye to counterfeit products that contribute to its increased sales volume.”
Amazon defended its treatment of third-party sellers in response to the report, and Bezos outlined the corporate’s combat towards counterfeits in the course of the listening to.
Cristina Posa, director of Amazon Counterfeit Crimes Unit, reiterated that place in a press release Thursday: “We invest significant resources in proactively protecting our store, and in addition, we take aggressive action to hold bad actors accountable as we’ve done here,” she mentioned.
Learn the total criticism introduced by Amazon and J.L. Childress under.