(Bloomberg)—Third-party marketplaces just like the one created by Amazon.com Inc. are flooding the U.S. market with imitation items, in keeping with a report commissioned by a gaggle of shops and producers.
Imports of such items price U.S. retailers about $54 billion a yr in misplaced gross sales, in keeping with the examine for the Purchase Protected America Coalition, which incorporates members corresponding to 3M Co. and the Retail Trade Leaders Affiliation, which is backed by Walmart Inc., Goal Corp. and others. A lot of the contraband merchandise come from China, the group stated in a assertion Wednesday.
The report represents a brand new salvo in a long-running lobbying marketing campaign as Congress considers laws—opposed by Amazon and Fb Inc.—that will require digital marketplaces to confirm details about third-party retailers. The Purchase Protected coalition can be stepping up its warnings about imitation items as world provide snarls threaten to drive extra buyers to sellers pushing fakes.
“Given the supply-chain disruption in the mean time, these counterfeiters are going to be actually ramping up their manufacturing,” stated Michael Hanson, a spokesman for the coalition. “It was rising earlier than, and the pandemic accelerated that as a result of there are such a lot of extra individuals purchasing on-line.”
Amazon, No. 1 within the 2021 Digital Commerce 360 High 1000, stated it invested greater than $700 million final yr and employed over 10,000 individuals to guard in opposition to fraud and abuse, with the objective of driving counterfeits to zero. The corporate fights fakes with controls based mostly on machine-learning talents and human investigation, in keeping with a report on its web site. It additionally began a “counterfeit crimes unit” that builds and refers instances to legislation enforcement businesses.
“This biased examine was funded by giant brick-and-mortar retailers who compete with on-line marketplaces and examine small companies who promote merchandise on-line as a menace,” Amazon stated in a press release. “Whereas counterfeiting has all the time been and stays an issue within the world retail business, fewer than .01% of merchandise offered on Amazon final yr acquired a counterfeit grievance from a buyer.”
Fb didn’t instantly reply to requests for remark.
Annual U.S. imports of imitation items now embody $1.5 billion in toys and $6.8 billion in cell telephones, amongst different merchandise, in keeping with the Purchase Protected report, which was performed by financial analysis agency John Dunham & Associates. Cosmetics, surgical masks and vehicle brake pads are affected as nicely, stated Hanson, who additionally serves as government vp of public affairs on the Retail Trade Leaders Affiliation.
Members of the coalition are backing the so-called INFORM Customers Act, which would require digital marketplaces to gather details about some third-party sellers corresponding to their authorities ID, tax ID and checking account particulars. Opponents have cited privateness issues in arguing in opposition to it, and warned of a dangerous impression on reliable retailers.
The invoice is about for a legislative listening to Thursday in a Congressional committee, Hanson stated.
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