Amazon Thursday announced a lawsuit against over a dozen bad actors, including online influencers and other companies, who attempted to evade Amazon's anti-counterfeiting measures by promoting luxury counterfeit products on social media sites, such as TikTok and Instagram, as well as on personal websites, then using Amazon seller accounts to fulfill those orders.
The lawsuit alleges that the defendants, Kelly Fitzpatrick and Sabrina Kelly-Krejci, conspired with vendors to execute a scheme that involved posting photos side-by-side of a generic, non-branded product that could be found on Amazon, and a luxury counterfeit product. The text in the message would be "Order this / Get this".
"Order This" indicated a generic product that was incorrectly advertised on Amazon. "Take this," meanwhile, referred to the luxury counterfeit products the consumer would receive.
By posting only generic product photos directly to Amazon.com, the defendants and sellers they worked with aimed to circumvent Amazon's anti-counterfeiting measures while claiming the counterfeit goods elsewhere on social media and the web. They also promoted the high quality of their luxury counterfeit products using Instagram videos, TikTok and personal websites and sent users to Amazon and other e-commerce websites, such as DHgate, to transact.
Note in this case that Fitzpatrick was a member of Amazon's Influencer Program while the counterfeiting program was in progress. From November 23, 2019 to March 6, 2020, he participated in the program under the username Kellyfitz02-20. When Amazon took over her businesses, she was banned from the program and closed her Associates account.
He then attempted to open new Associate accounts and continued to advertise the counterfeit items on social media, where he directed his followers to his own shopping website, as well as other e-commerce sites.
Instagram had closed Fitzpatrick's previous accounts, but would create new ones when that happened.
Although Fitzpatrick has made his current Instagram account private, his website is still online where the exhibit promoting so-called "hidden links" on Amazon where consumers can purchase the counterfeit products.
Similarly, Kelly-Krejci used her website to direct users to "hidden links" on Amazon where they could purchase counterfeit products, saying in a video that "she knows[s] some people feel weird ordering from hidden links, but then you get something fabulous. "
The lawsuit claims that the defendants have been managing their schemes since about November 2019 through filing the complaint.
Investigators working on Amazon's behalf were able to confirm the scheme by placing orders via the links and receiving the advertised counterfeit goods. The court filing shows several examples of these items, which included wallets, purses, belts, and sunglasses, which were dual stylists from brands like Gucci and Dior.
Other defendants in the case include companies and vendors in China who helped procure the duplicates. In some cases, sellers have taken steps to hide their identity and location from Amazon by using fake names and contact information and unregistered business activities, Amazon says.
Amazon has been working in recent years to take a tougher stance on counterfeiting, having recognized that the practice harms consumer confidence in its online store. In 2017, it launched the Amazon Brand Registry, which provides rights holders with tools to proactively identify and report infringing items. The following year, it launches a product serialization service, Transparency, which helps eliminate counterfeits for registered products.
And last year, Amazon launched Project Zero, a self-service counterfeit product removal tool that allows brands to remove counterfeit product listings on Amazon in minutes. Over 10,000 brands are currently registered.
The retailer is increasingly involved in legal action even against counterfeiters, to dissuade others from participating in counterfeiting programs.
The current lawsuit asks the court to ensure that defendants are prohibited from advertising, promoting and selling on Amazon, opening Amazon Vendor, Selling and Associate accounts, helping or favoring counterfeiters, and paying damages, legal fees and other remedies.