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amazon sues online influencers engaged in a counterfeit scheme

AVATAR Sarah Perez
Sarah Perez
Consumer News Editor, TechCrunch
November 12, 2020
amazon sues online influencers engaged in a counterfeit scheme

Amazon announced legal action on Thursday against a group of individuals and companies involved in deceptive practices. These “bad actors,” including social media influencers and various businesses, reportedly worked to circumvent Amazon’s counterfeit prevention systems by marketing imitation luxury goods through platforms such as TikTok and Instagram, as well as on their own websites, and then utilizing Amazon seller accounts to process the resulting orders.

The legal complaint details how Kelly Fitzpatrick and Sabrina Kelly-Krejci allegedly collaborated with sellers to implement a strategy involving the presentation of paired images. One image showcased a standard, unbranded product available on Amazon, while the other depicted a counterfeit luxury item.

The accompanying text in these postings directed consumers to “Order this” – referring to the generic product listed on Amazon – in order to “Get this,” which indicated the counterfeit luxury item they would ultimately receive.

amazon sues online influencers engaged in a counterfeit schemeBy listing only generic products directly on Amazon.com, the defendants and their associated sellers aimed to avoid Amazon’s anti-counterfeiting protocols while simultaneously promoting the counterfeit goods on social media and across the internet. They further emphasized the perceived quality of these imitation luxury items through videos shared on Instagram, TikTok, and personal websites, directing customers to Amazon and other e-commerce platforms, including DHgate, to complete transactions.

Notably, Fitzpatrick was a participant in Amazon’s Influencer Program during the period the alleged counterfeiting scheme was active. From November 23, 2019, to March 6, 2020, she operated within the program under the username Kellyfitz02-20. Upon detection of her activities, Amazon terminated her participation and closed her Associates account.

Following this, she reportedly attempted to create new Associate accounts and continued to advertise the counterfeit items on social media, guiding her followers to her personal website and other online marketplaces for purchases.

Fitzpatrick’s previous Instagram accounts had been deactivated, but she consistently established new ones to continue her activities.

Although her current Instagram account is now set to private, her website remains accessible and displays her promotion of so-called “hidden links” on Amazon, leading consumers to purchase the counterfeit products.

amazon sues online influencers engaged in a counterfeit schemeSimilarly, Kelly-Krejci utilized her website to direct users to “hidden links” on Amazon offering counterfeit products, stating in a video that she “know[s] some people feel weird ordering from hidden links but in this case you will get something fabulous.”

amazon sues online influencers engaged in a counterfeit schemeThe lawsuit claims that the defendants engaged in these practices from approximately November 2019 until the filing of the complaint.

Amazon investigators verified the scheme by placing orders through the provided links and receiving the advertised counterfeit goods. Court documents include examples of these items, such as wallets, purses, belts, and sunglasses, which were imitations of designs from brands like Gucci and Dior.

The case also names businesses and sellers based in China who allegedly supplied the counterfeit goods. Amazon states that some of these sellers attempted to conceal their identities and locations by using false names, contact details, and unregistered businesses.

Amazon has been strengthening its efforts to combat counterfeiting in recent years, recognizing the negative impact it has on consumer confidence in its online store. In 2017, it introduced the Amazon Brand Registry, providing brand owners with tools to proactively identify and report infringing listings. The following year, it launched Transparency, a product serialization service designed to eliminate counterfeits for participating products.

Last year, Amazon implemented Project Zero, a self-service tool enabling brands to remove counterfeit product listings from Amazon within minutes. Currently, over 10,000 brands are enrolled in this program.

The retailer has also increasingly pursued legal action against counterfeiters to deter others from engaging in similar schemes.

The current lawsuit seeks a court order to prevent the defendants from advertising, promoting, or selling on Amazon, opening Amazon Vendor, Selling, or Associate accounts, assisting or encouraging counterfeiters, and to recover damages, legal fees, and other appropriate relief.

#Amazon#counterfeit#influencers#lawsuit#fake products#online shopping

Sarah Perez

Sarah began her career as a journalist with TechCrunch in August 2011. Before this, she dedicated more than three years to ReadWriteWeb as a staff member. Earlier in her professional life, Sarah gained experience in the Information Technology sector, working in various fields such as finance, commerce, and software development. For inquiries or to confirm communications originating from Sarah, please reach her at sarahp@techcrunch.com or through Signal using the encrypted handle sarahperez.01.
Sarah Perez