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The Amazon Transparency Program Is a Counterfeiter's Worst Nightmare

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Re: The Amazon Transparency Program Is a Counterfeiter's Worst Nightmare

#52
post #37

Earlier quoted context omitted.

This subthread is entirely about the allegation that Amazon engaged in a repeated pattern of actively promoting wire fraud (a RICO predicate offense) as a commercial enterprise. They haven't previously been charged with a RICO predicate offense, but RICO doesn't require you to be separately charged with a predicate offense (either before or concurrently with RICO charges), only that the required relation to a predica…

So the best move for Amazon would be to do nothing / status quo? It's not like Amazon does this without any costs on their ends.

It would follow the Backpage precedent consistently at least - and people would hate it.

If they complain about the ethics of industry are low now wait until they cause "Johnny Tightlips" to become the safe legal standard.

Re: The Amazon Transparency Program Is a Counterfeiter's Worst Nightmare

#53

Earlier quoted context omitted.

Yes, finally. And they’re putting the cost on the manufacturers, even though it’s a problem they created. In effect, manufacturers are now paying for commingling and Amazon is reaping the benefits.

What a hilarious notion that Amazon "created" the problem of counterfeiting. Counterfeiting has been an issue for centuries , long long before Amazon existed.

Amazon didn’t create the problem of counterfeiting, but they did create the problems on Amazon. If I purchase something on Amazon and it is counterfeit, I can’t blame or avoid the counterfeiter because Amazon has commingled inventory. Even if I buy from a trusted seller or even Amazon itself, I might get a counterfeit item. My only choice in that case is to not buy from Amazon at all.

If I buy anywhere else that allows third party sellers, I might get a counterfeit item, but I’ll know to avoid that seller in the future. And I can develop a meaningful relationship of trust with sellers; seller reviews about counterfeits will have meaning; and I can shop with a lot more confidence.

Re: The Amazon Transparency Program Is a Counterfeiter's Worst Nightmare

#54

Earlier quoted context omitted.

Yes, finally. And they’re putting the cost on the manufacturers, even though it’s a problem they created. In effect, manufacturers are now paying for commingling and Amazon is reaping the benefits.

What a hilarious notion that Amazon "created" the problem of counterfeiting. Counterfeiting has been an issue for centuries , long long before Amazon existed.

I think the point is that by creating a system that makes counterfeiting easy and doing nothing to stop it when they knew it was taking place (or now demanding payment to stop it), Amazon is somewhat responsible.

Re: The Amazon Transparency Program Is a Counterfeiter's Worst Nightmare

#55
post #9

So create a system that encourages abuse, profit from that abuse at the expense of brands, and then charge those companies to use your proprietary tracking system if they want to eliminate it? This is straight out of a racketeering playbook, "It would be a shame if someone counterfeited your products and ruined your brand..." This is Amazon's problem and they should be responsible and accountable for this. This artic…

I don't think I fully understand your perspective. Aside from simply offering a marketplace on which people may sell various products, what has Amazon done to encourage abuse?

Co-mingling inventory.

Amazon isn't a marketplace. It's warehouse where the real goods are mixed in with the fake goods and you can't buy directly from a specific seller.

The fix is to stop co-mingling and allow users to buy directly from a seller. That would be a true marketplace platform. Sellers shouldn't need to pay Amazon for an add-on anti-counterfeiting service to fix a problem they created.

Re: The Amazon Transparency Program Is a Counterfeiter's Worst Nightmare

#56

So not only does Amazon co-mingle inventory to cause this problem in the first place, but then they turn around and charge brands if they want to enter this anti-counterfeit program. Incredible.

That is quite the inversion of burden of proof there. Amazon is a marketplace in the first place as opposed to a portal of stores. They sell by product. They have no obligation to do otherwise or to bar all secondary sellers. It is a privledge in the first place and they are entitled to demand that it not be used to shut out secondary markets.

[deleted]

Re: The Amazon Transparency Program Is a Counterfeiter's Worst Nightmare

#57
post #37

Earlier quoted context omitted.

This subthread is entirely about the allegation that Amazon engaged in a repeated pattern of actively promoting wire fraud (a RICO predicate offense) as a commercial enterprise. They haven't previously been charged with a RICO predicate offense, but RICO doesn't require you to be separately charged with a predicate offense (either before or concurrently with RICO charges), only that the required relation to a predica…

So the best move for Amazon would be to do nothing / status quo? It's not like Amazon does this without any costs on their ends.

The best move, ethically, would be for Amazon to pay for the additional costs of fraud mitigation required by their commingling practice out of the additional profits which motivate the practice, rather than profiting by creating a negative externality.

Re: The Amazon Transparency Program Is a Counterfeiter's Worst Nightmare

#58

Earlier quoted context omitted.

What’re the odds of using RICO here?

Its almost _never_ RICO: https://www.popehat.com/2016/06/14/lawsplainer-its-not-rico-...

Thanks, that’s fascinating. I mean, I had a feeling this was the case, but I figured I’d ask.

Re: The Amazon Transparency Program Is a Counterfeiter's Worst Nightmare

#59
post #39

Earlier quoted context omitted.

This subthread is entirely about the allegation that Amazon engaged in a repeated pattern of actively promoting wire fraud (a RICO predicate offense) as a commercial enterprise. They haven't previously been charged with a RICO predicate offense, but RICO doesn't require you to be separately charged with a predicate offense (either before or concurrently with RICO charges), only that the required relation to a predica…

The simple fact that Amazon shuts down stores that are found to be fraudulent kills any kind of RICO bullshit you want to spew.

Hey so it was a suggestion. No need for the hostility.

Re: The Amazon Transparency Program Is a Counterfeiter's Worst Nightmare

#60

Earlier quoted context omitted.

Couldn't they be per-unit shipped/sold on Amazon? Does the brand need to use the same unique code system in, for example, their own brick & mortar location?

From the article: "Brands are required to put Transparency codes on every unit for every SKU that’s enrolled, whether it’s sold on Amazon or through another channel." Amazon doesn't want companies to use this to prevent third parties from selling their products obtained via other channels through Amazon by claiming they are counterfeit, and so requires all products to contain the code, not just those sold through Ama…

What Amazon wants and what the brands will actually do are two separate things...

Many brands will just print the transparency codes for units destined for Amazon through proper channels...which will be designated by having their own SKU, like brands already do for Costco and Walmart sales.

Product sold through other channels will not have the transparency codes and will be presumed counterfeit.

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