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Tag: Counterfeit

  • Amazon Destroyed Millions of Counterfeit Products in 2020

    Amazon Destroyed Millions of Counterfeit Products in 2020

    Amazon has detailed its efforts to fight counterfeit products, including the destruction of more than 2 million counterfeits.

    Few companies have enjoyed as much success as Amazon during the pandemic. The company became a lifeline for many who were under lockdown and quarantine, and significantly expanded its workforce to keep up.

    A long-term problem Amazon has faced, however, has been companies and individuals trying to sell counterfeit goods on the site. As Amazon has become a force to be reckoned with in the retail market, it is also stepping up its efforts to combat counterfeit products and attract brands that have been reluctant to sell on the site.

    In its first Brand Protection Report, Amazon said fewer than 0.01% of products sold received a counterfeit complaint. That low number was, in part, the result of the company’s aggressive fight against the problem.

    We seized and destroyed more than 2 million products sent to our fulfillment centers and that we detected as counterfeit before being sent to a customer.

    The company also stepped up its efforts to prevent bad actors from even gaining a foothold in the store.

    Our verification processes stopped over 6 million attempts to create a selling account before they were able to publish a single listing for sale. This is a significant increase from the 2.5 million attempts we stopped in 2019, and it was driven by increased bad actor attempts to get into our store that we successfully thwarted.

    Amazon’s transparency about its efforts may help sway companies and brands that have been reluctant to embrace the e-commerce giant.

  • Homeland Security Investing Fake N95 Mask Scam

    Homeland Security Investing Fake N95 Mask Scam

    As if the pandemic is not bad enough, the Department of Homeland Security (DHS) is investigating a scam involving fake N95 masks.

    Effective masks are one of the principle ways to combat the coronavirus and prevent its spread. While important for the population at large, masks are especially vital for front-line health workers who are exposed to the virus on a daily basis. N95 masks are particularly important to health workers, as they provide a higher level of protection than a basic face mask.

    Unfortunately, companies are selling counterfeit N95 masks to hospitals and frontline workers. The counterfeits, purporting to be 3M masks, are becoming more difficult to detect, putting health and frontline workers at risk.

    “They’re not coming from authorized distributors,” said Kevin Rhodes, 3M’s vice president and deputy general counsel, according to the Associated Press. “They’re coming from companies really just coming into existence.”

    “These products are not tested to see if they make the N95 standards,” Rhodes added “They’re not interested in testing them. They’re interested in making as many as they can as cheaply as possible.”

    To help combat the counterfeits, 3M has published guidelines to help individuals and companies identify fakes.

  • Counterfeits Wreck The Economy – Here’s How

    Counterfeits Wreck The Economy – Here’s How

    Online bargain hunting is great, but sometimes those bargains turn out to be counterfeit. One study found that as many as two in five name brand items purchased online is counterfeit. Counterfeiting can be costly to businesses that have intellectual property stolen and sold out from under them, but counterfeiting can also be dangerous to consumers and can diminish the public image of counterfeited brands.

    Counterfeits Are More Pervasive Than Ever

    Thanks to online marketplaces where anyone can be a seller, highly convincing counterfeits make their way into homes and businesses across the world on a daily basis. An astounding 39% of the merchandise on online marketplaces is counterfeit, while 34% of search engine results yield counterfeit products as well. Makeup and skincare products are the most frequently counterfeited items outside of electronics, but supplements and medications are also counterfeited more frequently than you might suspect. While 16% of medications sold online are counterfeit, 10% of all medical products sold in developing countries are counterfeit, and most people don’t know they’ve used counterfeit medicines or medical products until they have had a bad reaction.

    Counterfeit electronics are also a lot more common than most people realize, and they can be very dangerous. 99% of fake iPhone chargers failed critical safety tests, causing electrical shocks and even sometimes electrical fires. Even secure cryptocurrency wallets are subject to counterfeiting, leaving valuable cryptocurrency in danger and most consumers wouldn’t even know it unless they were trained on what to look for. Many of the bargain electronics on online marketplaces are counterfeits; everything from replacement batteries to SD cards are commonly counterfeited.

    The Problems With Counterfeiting

    Not only is counterfeiting extremely costly – it’s estimated the global economy lost $323 billion from it in 2018 alone – it can leave consumers at risk and give companies an undeserved bad reputation. Most counterfeits are so convincing an unsuspecting consumer might not know it’s not a genuine article, and once something goes wrong the defrauded company is going to get the misplaced blame for the malfunction.

    Counterfeiters are also often associated with organized crime, and the profits from counterfeit merchandise can fund the drug trade, human trafficking, and more. Websites that sell counterfeit merchandise can often be used to steal the identities and bank card information of the unsuspecting people who use them, leading to still more crimes.

    Counterfeiting has also led to a trade war with China. One of the major complaints of companies that have manufacturing done in China is that some of those manufacturers are stealing intellectual property and using it to create an entire market of counterfeit products. This led to tariffs, which has led to a trade war standoff. Ironically, this trade war is pushing up the cost of genuine products, which in turn fuels the demand for counterfeits.
    Counterfeiting is a serious problem for everyone, and it doesn’t just take money out of the hands of wealthy purse designers. It causes genuine harm to consumers, businesses, and the economy as a whole. Learn more about the global cost of counterfeiting from the infographic below.

  • Groupon Recalls Fake, Possibly Holey Condoms

    Groupon Australia has admitted that it sold a bunch of counterfeit condoms that may, in fact, be full of holes.

    The condoms were sold between March 12 and April 10. If you do the math, and it’s not a hard one, you’ll realize there’s a good chance many of these holey condoms have been deployed already.

    According to the Australian Competition & Consumer Commission, the condoms were branded as Durex ‘Extra Safe’, ‘Thin Feel’ and ‘Performa’ varieties – but were in fact counterfeit.

    “The condoms may be counterfeit products with defects such as holes in the latex,” says the ACCC. “The condoms may not prevent pregnancy or protect users against sexually transmitted diseases, which can result in serious illness or death.”

    Oops.

    The Australian government Department of Health has issued an advisory, saying,

    “Counterfeiting is a problem for all major condom brands and consumers should be alert for potential fakes. Signs that might indicate a potential counterfeit products include suspiciously low prices, poor quality of printing on the packaging and whether information on the foil packaging of individual condoms match that on the box … In this situation, the seller was Edgelounge Enterprises (trading as Citrus Beat), who was responsible for direct shipment of the affected products to customers.”

    Groupon has offered customers a full refund on any returned condoms.

    “Customers are our utmost priority at Groupon and we take their health and safety very seriously. All customers who purchased the counterfeit products have been proactively contacted by Groupon notifying them of the recall and have been advised to discontinue use immediately, dispose or return the goods, and seek professional medical advice if they have concerns about their health,” said Groupon Australia in a statement.

    According to The Independent, this is not a rare occurrence:

    Counterfeiting is a serious problem for condom manufacturers, with cheap fake condoms being produced in their millions across the world, many of them in China.

    Shanghai Police yesterday announced they had seized three million fake condoms that contained toxic metals, with officers reporting that the lubricant used to coat the condoms was so disgusting that it made them feel sick.

    Bottom line: If you bought bulk condoms from a Groupon in Australia over the past month and a half – don’t use them.

    Images via Shawn Latta, Flickr Creative Commons

  • New $100 Bill, Counterfeit-Proof?

    Are you ready to get your hands on the new $100 bill? If so, you’re not alone. The $100 bill is the second most common bill only behind the $1 bill. So, it should come as no surprise that the public is anxiously waiting for the release of the newly upgraded $100 bill.

    The new $100 bills were originally intended for a 2011 release; however, complications with the printing led to a delayed release date. The bills will be released on October 8, 2013. Initial complications stemmed from the bills creasing, which led to blank spaces.

    Additional time was required due to the intricate process needed to create each bill where the blue security 3-D ribbon had to be sewed into the fabric of the bill instead of just stamped on the exterior. The extra efforts for this special design will help fight the potential for counterfeit.

    Dennis Forgue, who is a currency expert based out of Chicago, sounded optimistic about the capability of the bills limiting counterfeit.

    “That’s something that’s not going to be able to be reproduced on a photocopy machine, that’s for sure, or even on the computer,” Dennis Forgue said.

    The Associate Director of the Federal Reserve, Michael J. Lambert, mirrored the sentiments of Dennis Forgue when speaking about the decreased likelihood of counterfeit. “It only takes a few seconds for people, if they know what they’re looking for to know what they’re looking at is genuine,” Michael J. Lambert said.

    The following video depicts the detailed changes to the recent $100 bill upgrade.

    http://www.youtube.com/watch?v=G9spCFYYXUQ

    Multiple changes will be noticed on the bill including: the 3-D security ribbon with rotating “bell” and “100’s”, color-changing ink from copper to green when the bill is moved, Benjamin Franklin will no longer be encased in a dark oval, the picture of an an ink well will now be on the front, and a different view of Independence Hall will be placed on the back of the bill.

    Have the extra efforts to fight counterfeit been necessary? Many think so.

    “I would say it’s absolutely worthwhile to do whatever it takes to make sure that we have the best currency that we can,” Benjamin Mazzotta, a cost currency expert said.

    [Image Via Federal Reserve]

  • Tech Corruption in China [Infographic]

    A new chart illustrates the love/hate relationship China has with technology. Having the largest internet user base in the world, along with a country-wide firewall, China has been at odds with the internet, as well as all sorts of corruption surrounding counterfeit technology, product knock-offs, cybercrime, etc.

    Shanzhai, the Chinese outfit that copies Apple products, and maker of the D-Pad and the E-Pad, is blamed for taking part in cutting into 2.1 million U.S. jobs, at a loss of $48 billion in legitimate sales. So far, 22 completely fake Apple stores have been uncovered in China, featuring employees that actually believe their paychecks are coming from Cupertino, and there is no word on whether the fronts are selling real iOS products, Shanzhai knock-offs or straight counterfeits. And, the fact that Chinese counterfeiters operate so freely goes to show that the country’s intellectual property laws are a bit more loose than those in the U.S.

    Chinese users of its version of Facebook presently outnumber the entire population of the United States, and cybercrime is rampant – The U.S. Chamber of Commerce was hacked in 2010, promopting many companies to disallow employees visiting China from bringing mobile devices along, for fear of information being compromised.

    Hat tip to Web Hosting Geeks

  • Should SEO, Web Hosting Firm Be Held Responsible For Counterfeit Site?

    Precedence setting, or lone case? I’m sure SEO experts who have discovered this case are interested to see what becomes of it. A South Carolina judge has found the SEO Firm, Bright Builders Inc., responsible for damages done by a counterfeit golf club site.

    The judge ruled Bright Builders was guilty of contributory trademark infringement, and other charges, due to them providing marketing and web hosting services. The judge ordered Bright Builders to pay $770,050 in statutory damages, while the site’s owner, Christopher Prince paid $28,250.

    Do you agree with the difference between damages owed? Let us know.

    Cleveland Golf was the company who filed the suit, and originally only targeted Prince. When Cleveland’s lawyers discovered of Bright Builder’s services, they decided to file suit against them as well. The argument presented by Cleveland’s lawyers is Bright Builders was knowingly aware of the scam, and continued their services.

    Christopher Finnerty, one of the lawyers for Cleveland Golf said this of the ruling, “For Internet Intermediaries like SEOs and web hosts, this should be a cautionary warning” he continues, “The jury found that web hosts and SEO’s cannot rely solely on third parties to police their web sites and provide actual notice of counterfeit sales from the brand owners. Even prior to notification from a third party, Internet intermediaries must be proactive to stop infringing sales when they knew or should have known that these illegal sales were occurring through one of the web sites they host.”

    Finnerty also stated how this was the first time a service provider was found liable for infringement, without being notified prior to the lawsuit. Being the first of its kind, it brings about the question of whether or not this is a precedence setting case.

    I’m not totally surprised the judge found Bright Builders guilty of contributing to trademark infringement. Considering we have no idea of the knowledge the judge has or developed during the case in terms of web hosting, or SEO practices. What I find odd is the discrepancy between the amount of money responsible between Prince, and Bright Builders. How could they be responsible for so much more than the actual owner of the site?

    Bright Builders has never had a sterling reputation. If you research them on BBB, you’ll find a rating of ‘C-‘. 26 complaints have been filed against them. If you search for them on Google, one of the top links will direct to a website called scam.com.

    The case certainly leaves a worrisome feeling for SEO experts, and firms. It has the potential to make experts more aware of the content they’re working with. It also provides a debate among those interested.

    Should SEO and hosting services be responsible for the tools they’re providing counterfeit sites? If they have no knowledge of the site being counterfeit, is there a defense to be found? Considering how much a SEO service needs to know in order to be successful, it presents a rousing debate.

    Let us know how you feel about this case in the comments.

    EDIT: To clarify, the verdict was found by a jury panel and the judgement was handed down by the South Carolina Judge.

    UPDATE: Stephen Gingrich, Vice President of Global Legal Enforcement and HR for Cleveland® Golf/Srixon said this in a press release, “While individuals who sell counterfeits pose major problems for the manufacturer, companies like Bright Builders who can amplify the impact and scope of this problem are even more dangerous” he continues, “Counterfeiting has existed for thousands of years but has been a localized issue. The Internet, ease of global shipping and payments, combined with SEO’s and web hosts injecting steroids into the situation has brought the issue into every consumer’s living room.“