Online retail giant Amazon is profiting from Chinese counterfeiters undercutting genuine manufacturers on its platform, a small US business has claimed.
In a blog post on its website, Elevation Lab, which makes a small under-desk mount for headphones, has accused Amazon of not only being complicit in the sale of counterfeit goods on its platform, but also of profiting alongside the fraudsters who make cheap knockoffs of its products.
Noting how a Chinese firm named suiningdonghanjiaju Co Ltd had reverse engineered its Anchor product and mopped up all of its sales on Amazon after undercutting its prices, Elevation Lab said Amazon’s policies actively promote the activities of counterfeiters, who are able to use the platform to sell their bogus products while remaining anonymous.
Directing his comments at Amazon CEO Jeff Bezos, Elevation Lab founder Casey Hopkins said Amazon could do a lot more to stop counterfeiters using its platform to sell fake items, such as forcing new sellers to get approval to sell a product that has already been registered.
“Why Amazon doesn’t do this is mind-blowing and makes them complicit in the rampant counterfeiting on their platform,” Hopkins wrote.
“We are definitely not the first seller for this to happen to. And it lowers Amazon customers’ trust in the platform when they unknowingly receive knockoffs.
Addressing the claims made by Elevation Lab, Amazon issued a statement saying: “Amazon makes significant investments in innovative machine learning and automated systems in order to anticipate and stay ahead of bad actors.
“On an ongoing basis, Amazon’s systems also automatically and continuously scan numerous data points related to sellers, products, brands, and offers to detect activity that indicates products offered might be counterfeit.
“Customers are always protected by our A-to-Z guarantee, whether they make a purchase from Amazon or a third-party seller. If ever the product doesn’t arrive or isn’t as advertised, customers can contact our customer support for a full refund of their order. We take this fight against bad actors very seriously and will not rest.”
Only last week, a US government report warned of the high number of counterfeit items being offered for sale on websites such as Amazon, Walmart and eBay.
The Government Accountability Office (GAO) study noted how the rise of ecommerce had created a threat to intellectual property rights holders, and made it much more difficult for consumers to determine if what they are buying is genuine.
As well as posing a significant threat to the health and safety of consumers, the widespread availability of cheap counterfeit goods on ecommerce platforms also endangers legitimate manufacturers and the wider US economy, the report warned.
“If marketplace leaders struggle to keep out counterfeit products, and if consumers cannot rely on those leading companies to protect them from counterfeits, we have a serious problem that can undermine consumer confidence in the entire retail market,” said Beverly Baskin, CEO of the Council of Better Business Bureaus.
Rampant poaching decimates South African sea snail populations
Poachers have stolen 96 million abalone sea snails from the coastal waters of South Africa over the past 18 years, leading to a huge collapse in numbers of a species that was once abundant in the region, according to a new report from illegal wildlife trade monitoring NGO Traffic.
The study found that 90% of seas snails smuggled out of South Africa make their way to Hong Kong, where the animal’s meat is considered a delicacy, as it is in many other Asian nations.
Traffic estimates that poachers in South Africa are typically responsible for the disappearance of 2,000 tonnes of abalone every year, more than 20 times the amount that is allowed to be farmed legally.
In total, the illicit market is thought to be worth some $60 million annually.
Traffic’s report, which has been released alongside a documentary that explores the illegal trade, warns that the rocketing illegal harvesting of the animal is resulting in a huge annual loss for the local economy, and is at least partly being controlled by organised crime networks.
According to the study, an average of at least one abalone seizure took place every day between 2000 and 2016.
“Continued illegal harvesting and associated trade will have devastating impacts on abalone stocks and far-reaching negative socio-economic consequences for coastal communities whose economies, to a greater or lesser extent, are dependent on the proceeds of abalone poaching and trade,” the study says.
Noting the trade’s link to organised criminal cartels, it said: “Seizures of abalone often involved seizures of other contraband, commonly cash, cars or drugs.
“A number of seizures have included other high-value wildlife products, suggesting that the syndicates involved are not only focusing on the trade in poached abalone.”
Concluding its report, Traffic makes a number of recommendations, including the establishment of traceability systems, regional collaboration with neighbouring countries to prevent the smuggling of abalone, and the setting up of state-driven socio-economic initiatives to stem poaching of the animal.
Abalone can fetch more than $550 a plate in parts of Asia, driving many poor South Africans to take up poaching, risking their lives by diving in search of the in-demand mollusc.
The decline in local populations of sea snails has also been hit by the presence of Asian organised crime groups, who have moved into the area to take advantage of increasing demand for the animal in their home countries.
No-deal Brexit could hit UK’s ability to tackle organised crime and terrorism, police warn
The UK’s ability to tackle terrorism sand serious organised crime will be severely hampered by a hard Brexit, British police chiefs have warned.
Pulling out of the EU without a deal could see UK law enforcement agencies and security services lose access to vital crime-fighting tools such as the European Arrest Warrant, the Schengen Information System, the bloc’s intelligence systems and data held by Europol.
Announcing a new £2 million ($2.6 million) unit that will explore how alternative systems could be used if no deal is struck between the EU and Britain before the end of next March, Chair of the National Police Chiefs’ Council (NPCC) Sara Thornton said: “The fallbacks we’re going to have to use will be slower, will be more bureaucratic and it will make it harder for us to protect UK citizens and make it harder to protect EU citizens.”
“We are determined to do everything we can to mitigate that, but it will be hard.”
Using the recent Salisbury Novichok attack as an example of how a no-deal Brexit could impact UK police operations, Thornton noted how much more difficult it would be for Britain to detain the two men suspected of carrying it out should they enter the EU without a European Arrest Warrant in place.
The new unit will examine the effectiveness of non-EU crime fighting institutions and mechanisms, such as Interpol, bilateral channels and Council of Europe conventions.
In a statement on the contingency plans, the National Crime Agency (NCA) said the withdrawal of resources such as the European Criminal Records Information System and the European Multidisciplinary Platform Against Crime Threats would seriously impact Britain’s ability “to track criminals’ movements, monitor sex offenders and locate fugitives”.
“European law enforcement is more effective when we take coordinated action against shared priorities,” said Steve Rodhouse, NCA Director General of Operations.
“A lack of access to these European tools would mean a reduction in the ability of the UK to contribute to keeping Europe safe.”
In May, the Times of London reported that France had attempted to block British attempts to remain part of EU security systems after Brexit, quoting one UK government official as saying: “Normally France is quite helpful when it comes to security co-operation but on this they are being awkward.”
Indian officials rule out gold import fee hike over smuggling fears
The Indian Government has said it is considering taking action to slow the importation of gold into the country, but wants to avoid an increase in importation duties due to fears over smuggling.
A source told India’s PTI news agency that officials are instead considering alternative policy interventions to curb imports, which are having an adverse effect on the value of the rupee.
“There is not much scope for hike in import duty on gold,” the source said.
“Rather, it would be some kind of policy measures to reduce gold import. Higher import duty on gold may increase smuggling activities.”
While failing to specify the measures the Government is considering, the source said raising import duty on gold so close to the festive season would likely result in an increase in smuggling attempts.
Indian officials are due this week to announce a new list of items that will be subject to importation limits as part of wider efforts to cut the country’s growing current account deficit, and stem the fall of the rupee.
A comprehensive list of non-essential items are being considered, including steel, finished steel, furniture, electronics and a number of food items.
The smuggling of gold into India has rocketed over recent years after the Government hiked import duties to 10% in 2013 as part of an earlier effort to cut the country’s current account deficit.
According to the World Gold Council, traffickers smuggled some 120 tons of gold into India last year, with nearly the same amount expected in 2018.
After searching the flight steward, customs officers discovered gold weighing 1.05kg worth an estimated 3.1 million rupees ($50,000), according to the airport’s Joint Commissioner of Customs Anubha Singh.
Commenting at the time, a Singapore Airlines spokesperson confirmed that a member of its cabin crew staff had been detained by Delhi customs authorities, adding: “Singapore Airlines will provide full co-operation to the investigating authorities. We are unable to provide details of the crew member concerned due to confidentiality reasons.”
- Rampant poaching decimates South African sea snail populations
- No-deal Brexit could hit UK’s ability to tackle organised crime and terrorism, police warn
- #TakeBackPublicHealth: No place for Big Tobacco’s dirty schemes
- Indian officials rule out gold import fee hike over smuggling fears
- Colombian drug gang kingpin charged with multi-million dollar cocaine plot after extradition to US
9 February 2018
9 February 2018
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