How Amazon counterfeits put this man's business on brink of collapse

Svnla

Lifer
Nov 10, 2003
17,999
1,396
126
I know a lot of you love Amazon and do a lot of business there but this story (if it is true) is unsettling.

Until now, Forearm Forklift has been forced to self-police the site and take action to get unauthorized listings removed. See an infringer? Send a cease-and-desist letter. Suspicious of a counterfeit? Buy it, and prove to Amazon through a formal complaint that the listing should be taken down.

Repeat, repeat, repeat. And pray it works.

On the second floor of Forearm Forklift's warehouse, Lopreiato opens a closet filled floor-to-ceiling with cardboard boxes from Amazon purchases. Inside each, supposedly, is a version of his product.

There's no subtlety. The packaging includes not only his name and label but images of his family members and co-workers moving washing machines, armoires and exercise equipment. Open a box and find orange straps that are either too thin, too short, have loose stitching or are made of entirely different and weaker material.

Lopreiato said he's submitted more than 100 cease-and-desist letters to third-party sellers and takedown notices to Amazon. But go to Amazon today, and infringers are easy to spot. One listing for furniture moving straps contains an image that looks like a couple of seat belts. Among the attached photos is one of Mark's wife moving a mattress.

In a July 2015 e-mail to Amazon's patent team, Marty Proops, an Amazon marketplace expert who previously worked with Forearm Forklift on its account, said he and Lopreiato had identified 53 separate sellers offering infringing products over the past year.

Buyers who assume they're getting the real thing are dismayed when the product can't possibly help them move a 300-pound refrigerator. Thus, Forearm Forklift has one-star reviews from customers calling it a "cheap knockoff (don't purchase)" and "very obvious counterfeit."

"That posts on our offer page on Amazon so a lot of people think we're offering fakes," Lopreiato said.

and he is not the only one. Big companies have similar problems too.

Amazon's obsessive focus on pleasing consumers with discounts and service has come at the expense of brands like Forearm Forklift. In trying to provide the lowest-cost option for virtually every product on the planet, the company opened the doors to merchants from across the globe with little respect for intellectual property, despite an anti-counterfeiting policy that prohibits the sale of inauthentic items.

That's enabled manufacturers largely from China to take advantage of cheaper production and labor costs to compete on the Amazon market.

Some big brands have voiced their concerns.

Birkenstock said in July that it's no longer authorizing sales on Amazon starting in 2017. Last week Apple (NASDAQ: AAPL) sued a distributor named Mobile Star for selling counterfeit power adapters and charging cables on the site, claiming the products "pose an immediate threat to consumer safety."

https://www.yahoo.com/news/m/48613b93-2a28-3fd5-94f7-9adc4a254cd1/how-amazon-counterfeits-put.html
 

Miramonti

Lifer
Aug 26, 2000
28,651
100
91
There is a lot of douchebaggery in Jeff Bezos and the Amazon brand, no doubt about it. Just take a look at how little regard they have for the people working in their warehouses, and one isn't surprised they don't give a sh!t about their sellers. They've basically become Walmart on steroids...a business that's easy to hate, but still shop at because of their prices.

(btw iirc, this article either a rehash, or yet another example.)
 

GagHalfrunt

Lifer
Apr 19, 2001
25,297
2,001
126
I ran into something similar with a counterfeit Micro SD card earlier this year. Amazon goes to amazing lengths to protect dishonest sellers. As long as the commissions keep rolling in you could probably sell kidnapped children on the Amazon Marketplace and they won't give a shit.
 

FeuerFrei

Diamond Member
Mar 30, 2005
9,152
928
126
Definitely warrants immediate action by Amazon. Amazon may struggle with where to draw the line on imitation, but customers and vendors wouldn't mind stepping up to identify these unscrupulous cloners.

Also Amazon really needs to tag each review with the seller's name. Time after time reviewers complain and fail to name the seller.
 

Svnla

Lifer
Nov 10, 2003
17,999
1,396
126
There is a lot of douchebaggery in Jeff Bezos and the Amazon brand, no doubt about it. Just take a look at how little regard they have for the people working in their warehouses, and one isn't surprised they don't give a sh!t about their sellers. They've basically become Walmart on steroids...a business that's easy to hate, but still shop at because of their prices.

(btw iirc, this article either a rehash, or yet another example.)

I don't shop much at AZ so I can't comment about their prices but this story from last week said otherwise - http://www.businessinsider.com/amazon-vs-costco-prices-2016-10

Another story a few months ago from a different source - http://www.sfgate.com/business/article/Amazon-vs-Costco-A-price-comparison-7738699.php

Too bad the closest Costco is about 2 hours away so I can't do a personal comparison.
 

Miramonti

Lifer
Aug 26, 2000
28,651
100
91
I don't shop much at AZ so I can't comment about their prices but this story from last week said otherwise - http://www.businessinsider.com/amazon-vs-costco-prices-2016-10

Another story a few months ago from a different source - http://www.sfgate.com/business/article/Amazon-vs-Costco-A-price-comparison-7738699.php

Too bad the closest Costco is about 2 hours away so I can't do a personal comparison.
They are many good things to say about this company, and I tend to buy what I can there, providing I can get the right size/qty. The problem with Costco is more about selection limitations.
 

Mike64

Platinum Member
Apr 22, 2011
2,108
101
91
The products in question are incredibly easy to counterfeit, at least superficially. That's Amazon's fault? Are/were they refusing to take down counterfeit listings or something? If not, I guess I'm not really seeing how this makes Amazon a douche-bag. Not that I'm a huge fan of Amazon. I buy stuff from them, but not because "I like it/them". Hell, if limited myself to doing business with businesses "I like", I'd be in deeply serious trouble on many fronts...

Another story a few months ago from a different source - http://www.sfgate.com/business/article/Amazon-vs-Costco-A-price-comparison-7738699.php

Too bad the closest Costco is about 2 hours away so I can't do a personal comparison.
That was an intentionally ironic comment, yes? And in any event, comparing Amazon Prime to Costco isn't just silly, it's stupid and irrelevant...
 
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Reactions: RadiclDreamer
Feb 4, 2009
34,703
15,951
136
Since about 2010 I've been thinking internet vendors get a free pass too often. This article proves it.
Amazon is not the same as buying something at a flea market or from a private seller (individual). Amazon has the assets to prevent this stuff, they have the staff to verify if products are legitimate. They should be accountable.
 

Anubis

No Lifer
Aug 31, 2001
78,716
417
126
tbqhwy.com
They are many good things to say about this company, and I tend to buy what I can there, providing I can get the right size/qty. The problem with Costco is more about selection limitations.

that and for many of us is location

closest Costco to me is 50 miles away, before 2 years ago the closest Costco was in another fucking country.

even now a 100 mile round trip to Costco is never worth it for me, regardless of how much cheaper it may be for some random item
 

Mike64

Platinum Member
Apr 22, 2011
2,108
101
91
the answer to this is YES. amazon does not do shit about this. for this item or for any item
Well, if they're refusing to block further sales of identified counterfeits, that's certainly douche-baggery. If the issue is that they aren't affirmatively demanding proof that products are legit before they allow them to be listed, I disagree.
 
Feb 4, 2009
34,703
15,951
136
Why? What about Ebay? Should they be doing the same?

To an extent yes eBay should be accountable if its connecting businesses with buyers, if its amateur to amateur its not as wrong. Similar to how States have lemon laws that generally don't apply to you or I as sellers because we are not car experts but they do apply to car dealerships because they are experts.
 

Mike64

Platinum Member
Apr 22, 2011
2,108
101
91
To an extent yes eBay should be accountable if its connecting businesses with buyers, if its amateur to amateur its not as wrong. Similar to how States have lemon laws that generally don't apply to you or I as sellers because we are not car experts but they do apply to car dealerships because they are experts.
So, who's a "business" and who's an "amateur"? The more-than-overwhelming-majority of listings on Ebay are by anything but individuals re-selling their own "used stuff" for many, many years now...
 
Feb 4, 2009
34,703
15,951
136
So, who's a "business" and who's an "amateur"? The more-than-overwhelming-majority of listings on Ebay are by anything but individuals re-selling their own "used stuff" for many, many years now...

If its a business, like it has an Federal Tax ID its a professional. If its a housewife who sells stuff from yard sales its an amateur but regardless as pointed out if a legitimate business asks to have links removed because they are counterfeit Amazon should remove them.
 

Mike64

Platinum Member
Apr 22, 2011
2,108
101
91
yes Ebay should be removing listings for items that are counterfeit when contacted by the legit seller of said item
Agreed. I didn't see anything in the quote in the OP, or even in the article linked, that actually says (or even suggests) that Amazon is refusing to do that, though. The problem appears to be that every time a listing is nixed, another one pops up. But like I said, they products in question are incredibly easy to counterfeit, at least superficially, which always a problem for any product manufacturer. The easier your product is to counterfeit, the bigger a problem you're going to have. The simplest thing would be to stop selling through ANY reseller, but of course, that presents its own problems. But neither problem is "Amazon's fault" as far as I can see, unless Amazon itself "as seller" is selling counterfeit versions of the products.

If its a business, like it has an Federal Tax ID its a professional. If its a housewife who sells stuff from yard sales its an amateur but regardless as pointed out if a legitimate business asks to have links removed because they are counterfeit Amazon should remove them.
Well, then like I said, 99% of Ebay sellers are pretty clearly "businesses" (I'm obviously making that up, but you get the idea), especially when you include all the nickel-and-dime "flippers" who may or may not have tax IDs but are certainly supposed to...
 

GagHalfrunt

Lifer
Apr 19, 2001
25,297
2,001
126
Agreed. I didn't see anything in the quote in the OP, or even in the article linked, that actually says (or even suggests) that Amazon is refusing to do that, though. The problem appears to be that every time a listing is nixed, another one pops up. But like I said, they products in question are incredibly easy to counterfeit, at least superficially, which always a problem for any product manufacturer. The easier your product is to counterfeit, the bigger a problem you're going to have. The simplest thing would be to stop selling through ANY reseller, but of course, that presents its own problems. But neither problem is "Amazon's fault" as far as I can see, unless Amazon itself "as seller" is selling counterfeit versions of the products.

Well, then like I said, 99% of Ebay sellers are pretty clearly "businesses" (I'm obviously making that up, but you get the idea), especially when you include all the nickel-and-dime "flippers" who may or may not have tax IDs but are certainly supposed to...

I don't like the Amazon/ebay comparisons. The business models are vastly different, the way sellers are vetted is vastly different and customers expectations are vastly different. With ebay it's clearly on the shoulders of the community to Darwinize things. Ebay doesn't do much to police sellers and buyers know that (or at least should know that) going in. There's much more of a wild west, buyer beware atmosphere. With Amazon they do (or at least claim to) police things to keep vendors on the up and up. Customers go in with the expectation that they're dealing with reputable companies and Amazon can clearly eliminate the problem sellers far more easily that ebay can. Customers view Amazon more like they'd view Target or Costco, that the products are legit. With ebay the view is that it's caveat emptor, you have no idea who you're dealing with in many cases and accept that you have to take care of yourself a little more.

That's why it's a problem when Amazon not only does not act quickly and decisively to get rid of known bad vendors, but goes out of their way to protect them and allow them to prey on Amazons customers. Amazon likes to send the message that they've got your back and provide a shopping experience that's honest and safe. The reality is that Amazon has their own back and doesn't give a damn about people getting ripped off by bad sellers and companies getting hurt with counterfeit products flooding the marketplace. They've done their cost/benefit analyses and discovered that it's better to take care of things slowly (or not at all) and to return the money of the people who know they got ripped off so that they can keep raking in commissions on the bogus products sold to people who don't notice.
 

Svnla

Lifer
Nov 10, 2003
17,999
1,396
126
That was an intentionally ironic comment, yes? And in any event, comparing Amazon Prime to Costco isn't just silly, it's stupid and irrelevant...

I was a bit tongue in cheek but I also was serious. Of course, you cannot literally price check things scientifically because of different brands/models/styles/units/etc.

Not sure why you think AZ Prime vs. Costco comparison is not a good idea. I only was in a physically Costco store once so I was unable to express much about that place except it was similar like Sam's Club but the employees were more cheerful and helpful. A few items I checked while I was there were about the same price range as Sam's.
 
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Reactions: smackababy

readymix

Senior member
Jan 3, 2007
357
1
81

I find lots stuff from amazon that doesn't make the add-on list and stuff up to about $20 can be anywhere from 50% to 100% more expensive when sold by or fufilled by amazon. Latest was some leviton
items in the single digit range that where 1/2 the price at home depot.
 

ImpulsE69

Lifer
Jan 8, 2010
14,946
1,077
126
All of your solutions could be abused the other way as well..big producers forcing out small competing items of the same thing. Fact is Amazon isn't a fricking yard sale. They should have reputable sellers only. Not every 3rd party they can get their hands on. They are NOT ebay.
 

TwiceOver

Lifer
Dec 20, 2002
13,544
44
91
He's doing a good job. I didn't find a counterfeit claiming to be his product until Page3 of the search results.
 

Imp

Lifer
Feb 8, 2000
18,829
184
106
You guys should search for lithium primary batteries on Amazon and check the reviews out. Some I checked out, people were getting dead batteries that came in plastic baggies. Almost sounds like people (third-parties) are selling their used batteries on there.

It's not just batteries. I've seen tons of negative reviews where people got obvious counterfeits. These are usually products sold by Amazon and third-party sellers.

All of your solutions could be abused the other way as well..big producers forcing out small competing items of the same thing. Fact is Amazon isn't a fricking yard sale. They should have reputable sellers only. Not every 3rd party they can get their hands on. They are NOT ebay.

I've noticed that recently. It's so easy now that college students are just listing their textbooks on there -- obvious from brand new sellers with no ratings and their "stores" only have a few textbooks.
 
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