The problem of counterfeit goods is rising on Amazon, says AAFA

In a letter addressed to United States Trade Representative, American Apparel and Footwear Association (AAFA)- the trade group comprising of more than 1000 brands across the fashion industry wrote about the growing concern of counterfeiting on Amazon. Last year, AAFA had recommended adding Amazon websites in Canada, Germany and the United Kingdom to the list of notorious markets. Now the association is asking to include Amazon marketplaces in France and India to the same list.

AAFA identified around eight online markets as well as 130 physical stores involved in the sale of counterfeit goods. “Despite its role as a leader in the worldwide retail landscape, and as an important selling partner for many of our member brands, Amazon continues to present significant counterfeit challenges,” said AAFA president and CEO Rick Helfenbein.

“While we are happy to have seen increased engagement with Amazon on brand protection issues during the past year,” he added, “that engagement regrettably has not translated into a discernible decrease in counterfeits of our members’ products on Amazon’s marketplaces.”

The e-commerce giant has been facing accusations due to the sale of counterfeit products. With its expansion, Amazon has been increasingly reliant on third-party sellers to meet the increasing demand. However, the Seattle based company lacks full control over the third-party sellers which leads to the sale of counterfeit products.

In the past few months, Amazon has clamped down on fake products with the launch of Project Zero. The anti-counterfeit initiative uses an automated scanning tool and product serialization service, which helps to verify the authenticity of a purchase. Earlier in July, a federal appeals court ruled that Amazon can be held accountable for defective goods sold on its website by third-party merchants.