Luxury Brands Win Against Amazon Counterfeiting :
We don’t often hear about it, but the primary hurdle preventing luxury brands from venturing onto Amazon, despite their presence on TMall (Alibaba) in China, is frequently tied to the prevalence of counterfeit products being sold on the platform. This irks brands, who reproach the platform for its apparent inability to permanently address the issue.
In this light, a recent decision by a Chinese court in a case involving the overseas sale of counterfeit products on Amazon represents a significant stride for brands. The collaboration between Amazon’s Counterfeit Crimes Unit (CCU) and the Prada group has facilitated the provision of information and evidence to Chinese authorities, resulting in the conviction of a counterfeiter for the sale of fake luxury products.
This is a rare instance where a criminal referral from the CCU has culminated in a judgment based on evidence of counterfeit sales abroad and the dispatch of stock beyond China, rather than relying on counterfeit products seized by the police in warehouses.
Amazon asserts the use of automated protection technologies to prevent counterfeits from infiltrating its sites. In 2022, they thwarted over 800,000 attempts to open new selling accounts (the infamous KYC). Should the initial barrier be breached, Amazon’s CCU assumes the role of law enforcement. The disclosed figure is staggering: Amazon reports over 1,300 lawsuits in the United States, the United Kingdom, the European Union, and China.
For Prada, the collaboration with Amazon has proven instrumental in combating those who imitate and peddle their products, mitigating the detrimental impacts on their brand image. It’s conceivable that if this collaboration proves fruitful, Prada’s presence on Amazon’s LuxuryStore could become a reality.
Source Amazon.