Counterfeits, Fraud, and Scams Await Amazon Prime Day Shoppers

The Amazon Prime program is no protection against fake, fraudulent, and dangerous products.

June 17, 2021 - Los Angeles, CA – Most consumers would be shocked to learn that Amazon's touted (and expensive) Amazon Prime program has no protection against counterfeit, fraudulent, and dangerous items. "Buyer beware" is the mantra for the June 21st and 22nd event.

Amazon is a free-flowing conduit that enables Amazon, as a direct seller, and its third-party global sellers to flood the consumer market with an inexhaustible supply of counterfeit, fraudulent, pirated, and replica merchandise, books, medical devices, and OTC drugs. Consumers are easily deceived into spending good money on bad products, while Amazon takes its transaction fee for each item sold.

What are the risks of buying on Amazon?

• The majority of products sold on Amazon.com actually come from China and “third-party sellers” -- including unvetted listings endorsed with the “Prime,” "Amazon's Choice," or “Fulfilled by Amazon” claims.
• 500,000 brand-owners have signed up to fight counterfeits on Amazon, a glaring representation of the enormity of Amazon's counterfeit problem and the challenges facing consumers.
• The U.S. Government Accountability Office ("GAO") conducted an undercover investigation of e-commerce counterfeit goods sales. The GAO reported that about 50% of the items it purchased from e-commerce websites, including Amazon, were counterfeit.
• Amazon is a direct retailer of counterfeit, fraudulent and replica goods, e.g., "ships from and sold by Amazon.com." Amazon rarely notifies consumers they purchased a counterfeit or fraudulent product.
• The U.S. Consumer Product Safety Commission is investigating Amazon-branded electronic products highlighted in a CNN investigation last year. Dozens of  ’Amazon Basics’ electronics remained for sale on Amazon.com, despite customers reporting the products had melted, exploded or burst into flames.
• The "Amazon's Choice" endorsement is a scam. The product may be fraudulent or counterfeit and "Amazon does not manually curate products. There is no unique safety testing for the "Amazon's Choice" products. There is no unique screening for authenticity to receive that badge" testified Amazon VP Dharmesh Mehta.
• Customers may not receive products from the seller they order from but commingled products from Amazon's closest fulfillment center. "Amazon virtually tracks different units that are identical, shipping the products closest to customers," states Amazon Consumer Trust VP Dharmesh Mehta. Sellers send their counterfeit products to Amazon’s fulfillment warehouse to lend credibility and an implied endorsement by Amazon while obscuring the actual source (often China).
• Amazon seller evaluations (feedback) and product reviews are virtually worthless. Product reviews are no indication of authenticity or quality and may not even be related to the product searched. Amazon's review system is awash in fraud, paid endorsements, and direct manipulation by Amazon. Negative reviews are removed, while sellers hire businesses to create dummy accounts, purchase products, and write fictitious reviews and complaints.
• Your Amazon purchase may have come from the trash, according to a Wall Street Journal investigation. Sellers send used items and items recovered from the trash to Amazon's Fulfilled by Amazon ("FBA") worldwide distribution centers to hide the origin and create the illusion Amazon sells the items. They may even carry Amazon's coveted "Amazon's Choice" endorsement or Prime designations -- neither of which are assurances of quality, authenticity, or origin.
• The advertised bargain may be no bargain at all. A marketwatch.com study found Costco's prices 17% lower than Amazon's.
• For a second year, Amazon remains on the U.S. Trade Representative's "Notorious Market List." The list is reserved for the worst online markets and offenders that enable and facilitate the world's largest criminal enterprise; counterfeit product sales, copyright piracy, and trademark infringement. Amazon has the distinction of being the first and only U.S. company to be added to the list.

Amazon is no longer a safe choice for consumers. Even if consumers wisely avoid Amazon, they are still at risk of injury or death from other shopper's counterfeit and fraudulent product purchases or gifts. Amazon may be just another massive corporate entity to feel a vague sense of guilt about giving your money to, but you have a choice.