Amazon Gets Serious About Counterfeits

The ecommerce giant has taken its first action against third-party sellers for selling fake products, according to the Wall Street Journal.

In a lawsuit filed by Inc., it alleges some third-party sellers are offering fake products including a strap system for lifting heavy items (imitating Forearm Forklift) and workout bands and products (counterfeiting TRX Suspension Trainers). Amazon also filed a joint lawsuit with Fitness Anywhere LLC, the company that owns the authentic workout bands.

Amazon has been working on fighting counterfeits, including saying the third-party sellers will be charged a $1,500 one-time fee and requested them to provide invoices proving authorization. The company also claims it has spent tens of millions of dollars on technology, as well as employed a team, to identify fake products.

“When customers purchase counterfeit goods, it undermines the trust that customers, sellers and manufacturers place in Amazon,” stated the company in the lawsuit. “Thereby tarnishing Amazon’s brand and causing irreparable reputational harm.”

In July, Birkenstock GmbH announced it would stop selling to American Amazon after January 1, 2017, and it will no longer authorize third-party sales of its products to the website. Apple Inc. alleged the some of the fake Apple products selling on the online retail giant were offered by Amazon. Apple has filed a suit against the alleged supplier Mobile Stars LLC.

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