Prada, Amazon Team to Combat Counterfeits
MILAN — The Prada Group and Amazon’s efforts to combat counterfeits on Amazon’s marketplace have led to a counterfeit seller’s guilty plea, the two companies said Monday.
A Chinese court sentenced a counterfeiter to three years in prison, a $25,000 fine, and to forfeit payment of all revenues gained from the sale of counterfeit goods, as part of an investigation kicked off by Amazon in 2021, the companies said.
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The two companies and other undisclosed luxury players teamed up to help Amazon provide Chinese law enforcement with information and evidence leading to the ruling against the defendant, an individual, based on records of counterfeit sales and logistics-center inventory, rather than seized fake goods.
No estimate of the fake goods’ value was provided.
Criminal judgments are typically issued when evidence of counterfeiting activities is provided through seizure raids. In this instance, the court relied more on information provided by Amazon and luxury brands, including the Prada Group.
“We are firmly committed to eradicating the sale of counterfeit goods to protect our brands and to ensure that our products meet the level of quality, craftsmanship and care that people expect from us. Through the collaboration with Amazon, we are making great progress in the fight against those who attempt to break the law and to negatively impact our customers,” said Francesca Secondari, Prada Group general counsel and chief legal officer.
Amazon’s Counterfeit Crimes Unit, or CCU, first detected the then-alleged counterfeiting activity in 2021 and brought it to the attention of China’s Public Security Bureau to pursue a criminal case against the person. In light of the ruling, the counterfeit goods are to be seized and destroyed.
“The guilty plea is a significant win for Amazon’s CCU, but more importantly it’s a win for all of those who share our commitment to tackling the industry-wide issue of counterfeiting,” said Kebharu Smith, director of Amazon’s CCU. “This successful result would not have been possible without the collaboration with law enforcement and luxury players such as the Prada Group. We are grateful for their support and look forward to continuing to take the fight to counterfeiters,” he added.
As reported, according to the e-tail giant’s latest brand protection report released last April, Amazon’s anti-counterfeiting measures have led to the removal of 6 million fakes from circulating on its marketplace and other stores, and stopped about 800,000 illicit accounts from opening virtual storefronts on the platform.
Amazon aims to blend brand and consumer reporting, seller vetting, mandated removals and legal enforcement actions, as well as brand relationships and communication with partners and authorities like the U.S. Customs and Border Protection. Additionally, the tech giant’s expertise in artificial intelligence has helped amp up the efficacy of its copycat-busting strategy.
In 2022, Amazon’s Counterfeit Crimes Unit sued or referred for investigation more than 1,300 alleged criminals across the U.S., the U.K., European Union and China.
This is not the first time Amazon has found a luxury ally. As reported, in 2022, Chinese authorities raided a warehouse and seized counterfeit Salvatore Ferragamo belts thanks to efforts by the Italian luxury house and Amazon.
Over the years Amazon has filed a series of lawsuits against counterfeit sellers, working with Valentino, cosmetics brand KF Beauty, family travel accessory brand JL Childress and Yeti coolers.
Amazon prohibits infringing and counterfeit products in its storefronts and, in 2020, it invested more than $700 million and employed more than 10,000 people to protect the marketplace from fraud, counterfeits and abuse.
Amazon launched the CCU in 2020 to help hold counterfeiters accountable through the courts and law enforcement. This global team — which is made up of former federal prosecutors, former law enforcement agents, experienced investigators and data analysts — pursues targets around the globe.
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