Amazon Faces U.S. Govt Notorious Markets Blacklist

Research exposes a shocking pattern of corporate behavior

December 10, 2019, Los Angeles, CA – Amazon has engaged in a pattern of conduct so reprehensible that it may be placed on the U.S. Trade Representative's "Notorious Markets List." The government list is reserved for the worst online markets that enable and facilitate the world's largest criminal enterprise; copyright piracy, trademark infringement, and counterfeit product sales. The Trump administration is considering the move, a public shaming of the e-commerce juggernaut.

Amazon operates an organized, invasive, and manipulative global system of fraud, deception, misrepresentation, data leaks and the advertising, sale, distribution, and delivery of counterfeit and fraudulent goods. Amazon has earned global scrutiny and investigation by the U.S. Government Accountability Office ("GAO"), EU anti-trust regulators, and is facing investigation by the U.S. Federal Trade Commission ("FTC").

The American Apparel & Footwear Association ("AAFA"), which represents more than 1,000 brands, has repeatedly recommended that Amazon be added to the Notorious Markets List. Amazon responded to the AAFA contentions saying in a filing with the USTR that it invested $400 million in 2018 to fight fraud and abuse -- that's less than 4 cents for every profit dollar Amazon earns.

Peter K. Navarro, White House trade advisor to the president, issued a harsh condemnation, "When you purchase brand-name goods through online third-party marketplaces like Alibaba, Amazon, and eBay, there's a good chance you'll end up with a counterfeit."

Amazon's reports reveal they receive an infringement notice for 1 of every 100 customer page views, and 200,000 brands have signed in to fight counterfeits on Amazon -- a shocking revelation of the enormity of Amazon's counterfeit problem. Additionally, Amazon recruited over 7,000 brands to enroll in Amazon's new "Project Zero," a plan where Amazon charges brand-owners to remove infringing listings across the U.S., Europe, and Japan.

The Counterfeit Report, an award-winning consumer advocate and counterfeit watchdog, found over 170,000 fake, fraudulent, and replica items on Amazon. Research identifies Amazon as both a direct seller and also enabling unvetted third-party sellers to list and sell counterfeit and fraudulent merchandise, expired food items, and dangerous products on its websites. Even if consumers wisely avoid Amazon, they are still at risk of injury or death from other shopper's counterfeit and fraudulent product purchases.

Amazon has established a pattern of ignoring counterfeit complaints even with the oversight of two Amazon Global Brand Managers assigned to The Counterfeit Report. Neither responded to inquiries and over 1,100 counterfeit complaints for the past year. Legal process on fraudulent products was ignored. The counterfeit and fraudulent products remain, yet legitimate brand-owner's listings are inexplicably removed. The profits pour in, but Amazon paid no federal income taxes on $11.2 billion in profit in 2018 and $5.6 billion in 2017.

Amazon's addition to the Notorious Markets List is warranted and long overdue. Legislative and judicial intervention is required for Amazon's indifference to the damage they cause to consumers, legitimate sellers, and manufacturers.