Amazon’s Efforts to Combat Counterfeiting and Fraud
Amazon Brand Protection Report for 2022
Amazon recently released its Brand Protection Report for 2022, reporting on the progress of its key initiatives to combat counterfeiting in 2021 and its plan for continued success in those areas.
Amazon Brand Protection Key Goals
Continuing with its key goals from the previous year, Amazon outlined its progress and plans forward in four key areas: (1) Robust proactive controls on product authenticity; (2) Brand protection tools; (3) Holding counterfeiters accountable; and (4) Protecting and educating consumers. Under this structure, Amazon outlines its intent to be “earth’s most customer-centric company” where consumers “can find and discover the widest possible selection of authentic goods.”
Whether in response to increasing complaints of counterfeit or fraudulent products for sale through its platform or a legitimate concern for the protection of its consumers and brands—or both—Amazon has launched a number of anti-counterfeiting measures in recent years. In the second ever Amazon Brand Protection Report, Amazon outlines its progress, and successes, in each of these key areas.
Robust Proactive Controls
According to Amazon, 2021 saw its investment of more than $900 Million and employment of more than 12,000 machine learning scientists, software developers, and expert investigators—all working in conjunction with rights owners and law enforcement—to protect consumers and brands from counterfeits, fraud, and other forms of abuse. Efforts in this area in 2021 included 100% participation of new sellers in Amazon’s in-person verification program, requiring all new sellers to meet with Amazon team members in person to verify their identify and documentation prior to establishing a new seller’s account on Amazon. In the past year, Amazon halted over 2.5 Million attempts by previously identified bad actors to create new selling accounts, significantly down from more than 600 Million attempts by such parties 2020.
Amazon Brand Protection
2021 also saw greater implementation of automated brand protection tools such as Amazon’s Brand Registry program, which saw an increase of over 700,000 active brands participating in 2021—up 40% from the previous year. Brand Registry is a free service for brand owners, regardless of whether they sell products on Amazon, that allows brands greater management and protection of their brand and intellectual property rights on Amazon. The program allows brands to track and report infringement and provides greater automated protections that leverage machine learning and data provided by each brand. In 2021, reports of infringement among the participating brands reportedly decreased by 25%. This may be in part due to automated processes utilized by Amazon such as scanning more than 8 Billion attempted changes to products by existing sellers (up from 5 Billion in 2020) that resulted in Amazon blocking more than 4 Billion listings due to suspected infringement, fraud, or counterfeit goods. Amazon also increased participation in programs such as IP Accelerator, Project Zero, and Transparency, all designed to increase the control individual brands have over their own intellectual property and the ability to identify and remove inauthentic products from Amazon.
Amazon Brand Protection by Holding Counterfeiters Responsible
Amazon has also focused on greater accountability for bad actors, utilizing its Amazon Counterfeit Crimes Unit (CCU), which is made up of former federal prosecutors, FBI agents, experienced investigators and data analysts, to share information directly with law enforcement and customs to identify and seize counterfeit inventory and prosecute those involved in the importation and sale of counterfeit goods. In 2021, Amazon filed civil lawsuits in U.S. courts against more than 170 counterfeiters and sued or referred for investigation over 600 bad actors in the U.S., U.K., E.U. and China, a 300% increase on the previous year.
Amazon also partnered with brands like Yeti, GoPro, HanesBrands, Valentino, Weber, Salvatore Ferragamo, Whirlpool and Proctor & Gamble to combat counterfeiting globally. Amazon’s efforts lead to a joint effort between U.S. Homeland Security and the LA County Sherriff’s Department that resulted in the seizure of more than $1.2 Million in counterfeit automotive parts. Information provided by Amazon and Salvatore Ferragamo also prompted China’s Market Supervision and Administration Authorities’ raid of a warehouse and seizure of counterfeit belt buckles and belts. Also in 2021, Amazon published its blueprint for partnership between the private and public sectors to stop counterfeiting by facilitating the exchange of information across retailers and increasing resources available to law enforcement. This includes enhanced communication and exchange of information between Amazon and the USPTO to ensure that false or fraudulent marks are not used to enroll in Brand Registry.
Protecting and Educating Consumers
In order to further protect and educate its customers, Amazon reports its partnership with the U.S. Chamber of Commerce Global Innovation Policy Center prior to the 2021 holiday season to identify for consumers 10 tips for avoiding counterfeit goods. In conjunction with this effort, Amazon and its partners were interviewed on television stations in over 200 media locales and Amazon executives addressed the content in two separate webinars. Amazon also continued its commitment to consumers, proactively alerting customers who had purchased what were later identified as inauthentic goods and providing them a full refund.
As the harm of counterfeiting and other frauds against brands and consumers continues to be a global concern, particularly on online platforms, it appears Amazon is committed to dedicating ongoing efforts to stem the tide of such products on the market, both for the protection of its consumers but now, also, for brands worldwide. No doubt the eyes of the retail world will be watching and weighing in on whether these efforts are successful, and whether increased attention on counterfeiting will increase the public’s awareness of the harms caused by the purchase of inauthentic goods—both to brands and consumers, alike.
Key Takeaways on Amazon Brand Protection Report for 2022
Amazon indicates it intends to become a customer-centric company with the widest selection of authentic goods available through the use of various brand protection tools and requirements aimed at protecting brands and consumers from counterfeit goods, such as:
implementing proactive controls for product authenticity;
the addition of new brand protection tools;
holding counterfeiters accountable; and
education for the protection of consumers.
For more information about brand protection, see our Anti-Counterfeiting and Enforcement and Industry Focused Legal Solutions pages.