Amazon has a counterfeit problem and VERITY has the solution

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May 30, 2019 Cheyenne WY, Seattle WA USA

Verity | TRUTH MATTERS

Amazon has a counterfeit problem and VERITY has the solution for this problem.

Solution
Verity uses Blockchain, Artificial Intelligence (AI) and Internet of Things (IoT) to track trace, certify and verify products. Order here

Amazon’s third-party marketplace is full of independent sellers from a business perspective, the system works great for the e-commerce giant: Amazon sits back and collects fees from those sellers, whose sales on the platform continue to grow. In 2017, for the first time, more than half the products sold on Amazon came from those marketplace listings, rather than from Amazon itself it’s causing at a counterfeit problem for Amazon. Some of the independent third-party sellers have been using the marketplace and fulfilled by Amazon (FBA) as an opportunity to sell counterfeit, pirated and out of date products. The pressure on Amazon has been growing as brands such as Apple, Birkenstock and Louis Vuitton have lasted out for not being able to control the problem. Now, Amazon has acknowledged sales of counterfeits and pirated items as a risk in its annual earnings report to investors and the US securities and exchange commission.

SEC Link Below
Under the section of “risk factors” to the business, Amazon says it “could be liable” for the activities of its sellers, and explains:

Under our seller programs, we may be unable to prevent sellers from collecting payments, fraudulently or otherwise, when buyers never receive the products they ordered or when the products received are materially different from the sellers’ descriptions. We also may be unable to prevent sellers in our stores or through other stores from selling unlawful, counterfeit, pirated, or stolen goods, selling goods in an unlawful or unethical manner, violating the proprietary rights of others, or otherwise violating our policies. Under our A2Z Guarantee, we reimburse buyers for payments up to certain limits in these situations, and as our third-party seller sales grow, the cost of this program will increase and could negatively affect our operating results. In addition, to the extent any of this occurs, it could harm our business or damage our reputation and we could face civil or criminal liability for unlawful activities by our sellers.

Amazon adding third-party sales of fakes to its risk factors signals how big a problem the matter has become. In October 2018, the American Apparel and Footwear Association, a large industry trade group representing more than 1,000 brands, even asked the Office of the United States Trade Representative to add some of Amazon’s overseas marketplaces to the list of “notorious markets” it compiles each year. The list has included markets such as China’s Taobao, which has a reputation of being rife with fakes.

Source documents:
https://www.wired.com/story/amazon-fake-products-project-zero/
https://www.forbes.com/sites/wadeshepard/2017/12/13/how-to-protect-your-family-from-dangerous-fakes-on-amazon-this-holiday-season/
https://qz.com/1542839/amazon-has-finally-admitted-to-investors-that-it-has-a-counterfeit-problem/

VERITY has an exclusive agreement with Chinese Wholly Owned Company EPEM: https://www.1p1m.cn to provide all Country of Origin Labeling “COOL” verification and validation services regarding imports into China with “Made in USA and Product of USA Certified®” claims, to help balance out and provide transparency for the U.S. | China Trade deficit and all COOL claims Tags, Made in USA Certified®, Product of USA Certified®, Made in China Certified™, President Donald Trump, President Xi JinPing, U.S. China Trade Deficit, Amazon.

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Counterfeit on Amazon

forearm-forklift

Amazon.com (AMZN) is finally taking counterfeiters to court.

The e-commerce giant for the first time has filed lawsuits against counterfeit sellers, after a number of businesses on Amazon voiced concern that knockoffs were killing their sales and endangering consumers.

On Monday, Amazon filed suit against a group of sellers for infringing on athletic training equipment developed by TRX. In a second case, Amazon sued sellers who are offering fake versions of a patented moving product called Forearm Forklift.

Last month, CNBC.com featured Forearm Forklift , a Southern California company that has been crushed in recent years from counterfeiting on Amazon. Mark Lopreiato, the founder of the company, which makes straps for lifting and moving heavy equipment, said he submitted more than 100 cease-and-desist letters to sellers and takedown notices to Amazon, yet fakes have continued to proliferate. Read more of this post

Apple: Many ‘genuine’ Apple products on Amazon are fake

Oct. 17, 2016, that it has been buying Apple products labeled as genuine on Amazon.com and has found nearly 90 percent of them are counterfeit.

Oct. 17, 2016, that it has been buying Apple products labeled as genuine on Amazon.com and has found nearly 90 percent of them are counterfeit.

SAN FRANCISCO (AP) — Apple says it has been buying Apple chargers and cables labeled as genuine on Amazon.com and has found nearly 90 percent of them to be counterfeit.

The revelation comes in a federal lawsuit filed by Apple against a New Jersey company on Monday over what Apple says are counterfeit products that were sold on Amazon.

In the lawsuit, Apple says Mobile Star imprinted Apple logos on cables and chargers that “pose a significant risk of overheating, fire, and electrical shock.” It says the chargers and cables were being sold on Amazon as genuine Apple products.

Apple says it purchased the products on Amazon and later told the online retailer that they were fake. Amazon then identified Mobile Star as the source.

Amazon isn’t named in the suit, but said in a statement that it has “zero tolerance” for counterfeiters on its site and that it pursues “wrongdoers” aggressively. Mobile Star didn’t return a voicemail seeking comment.

 

 

 

 

 

AP: https://www.yahoo.com/tech/apple-many-genuine-apple-products-amazon-fake-142356031.html

Morning News Beat Walmart Watch

Morning News Beat

By: Kevin Coupe

• Business Insider reports that Citi analyst Deborah Weinswig is saying that Walmart management seems to be focused on its Made in the USA initiative, and that this effort could lead to improved profitability.

An excerpt: “While global sourcing remains a significant source of EDLC opportunity, we believe that the $50B commitment to increase domestic sourcing over the next decade should benefit topline and profitability at WMT U.S.

“Domestic sourcing will help the company avoid wage inflation overseas and shipping costs, while increasing flexibility through shorter lead times and generating positive reputational buzz. WMT U.S. kicked off the initiative this week with Georgia state sourced towels, priced at $8.97 for bath size. They are offered in 600 stores and will be in an additional 600 stores by Sept., supported by local marketing.”

KC’s View: I do have a bit of a dog in this hunt, since one of MNB’s longtime sponsors offers certification of Made in the USA products. But I was a big proponent of such programs long before this company began sponsoring MNB, so I don’t feel like I have any apologies to make.

I think you are going to see a lot more of these programs, because Made in the USA increasingly will be seen as an advantage for marketers. You have to do it right, you have to be credible, and you can’t take shortcuts. But it makes a lot of sense … and I don’t think it is hard to imagine Amazon having a Made in the USA section, for example … which may be enough for Walmart to do it.

So, it is good to see Walmart executives taking this seriously.  Just as Kevin says – “You have to do it RIGHT, you have to do it CREDIBLE and you can’t take shortcuts..”  But, we want to know, would you feel better about your Made in USA purchases at Walmart orAmazon or any other major retailer if they were- Made in USA Certified?

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