Amazon CEO Jeff Bezos admitted that fake products continue to hurt the e-commerce site at Wednesday’s hearing with the tech giants.
In response to questions from Representative Henry Johnson, a Georgia Democrat, Bezos said it is “an incredibly important issue” and that “counterfeiting is a scourge.”
Bezos went on to say that “it does not help us gain trust with customers” and that it is “bad for honest third-party sellers,” referring to independent sellers, where counterfeiting is the rampant.
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The CEO went on to say that Amazon has a team of more than 1,000 people fighting counterfeiting and that the company has invested hundreds of millions of dollars in systems to combat the problem.
Amazon CEO Jeff Bezos testifies via video conference during the House Judicial Subcommittee Hearing on Antitrust, Business and Administrative Law on Online Platforms and Market Power in the Rayburn House office building on July 29, 2020 on Capitol Hill in Washington, DC.
(Photo by Graeme Jennings-Pool / Getty Images)
“We have something called Project Zero, which helps brands serialize individual products, which really helps with counterfeiting,” said Bezos.
But Johnson challenged Amazon not to take responsibility for third-party counterfeits.
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“Why is Amazon not responsible for keeping all of its counterfeit products off its platform?” Johnson asked.
“We certainly work to do it,” Bezos replied.
Johnson was not satisfied with that answer and mentioned examples of counterfeiting that were hurting honest third-party resellers. Johnson said Amazon uses “knockoffs as leverage to pressure sellers to do what Amazon wants.”
Bezos said that is “unacceptable” and “if those are the facts,” then Amazon would investigate. He added that Amazon has a counterfeit crime unit that prosecutes counterfeiters.
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“I would encourage this body to impose stricter sanctions on counterfeiters and increase police resources to prosecute counterfeiters,” said Bezos.
Forgery of coronavirus
Counterfeiting on Amazon attracted attention earlier this year when there was a plague of coronavirus “cures” at the site. Amazon said at the time that it was banning the sale of more than 1 million products that falsely claimed to cure or provide protection against the new coronavirus.
Amazon has also been plagued by fake Apple accessories, fake footwear, and fake dietary supplements.
The company addressed some of these issues in a blog post last year.
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“We invest significant resources to protect our customers and have developed robust programs designed to ensure that the products sold in our store are safe and compatible. We want customers to buy with confidence and if a customer ever has a concern, they can contact our customer service team and we will investigate, ”the company said.
