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Amazon AU Site Under Investigation For Counterfeit & Banned Goods

Serious questions are being asked about the Amazon Australia marketplace operation with the US Government recently investigating the site for counterfeit goods, a ChannelNews investigation has also revealed several products banned in Australia are being listed.

Questions have also been raised about the grey importing of goods by Amazon’s marketplace partners as well as the sale of none certified electrical goods including hoverboards, scooters and other goods that don’t have the Australian C Tick certification.

Action could be taken shortly by the U.S. Trade Representative’s Office, which publishes an annual list of “Notorious Markets” that identifies online and physical marketplaces believed to sell or facilitate the sale of counterfeit goods and pirated content.

Investigations have revealed that Amazon sites have evolved like a flea market, littered with products declared unsafe or banned by federal agencies in both Australia Europe and the USA.

Recently the Marketing Director of Jabra Australia, Sid Rashid took aim at Amazon revealing that several models of the Companies headphones were being ‘grey imported’ by Amazon marketplace providers. He said that Jabra Australia would not offer any warranty on the Jabra goods spanning both business and consumer products.

Rashid in a direct stab at Amazon showed how the grey imported products listed on Amazon.com.au were initially identified as being products from Jabra but when investigated. “This was not the case” he said.

When he clicked a button on the bottom of the SKU several providers were listed which he said were not Jabra Australia sold or authorised products with several Jabra headphones being offered in Australia being shipped from China and Hong Kong.

At the weekend the Trump administration said that they are considering adding some of Amazon.com Inc. ’s overseas operations to a list of global marketplaces known for counterfeit goods.

ChannelNews understands that one of these sites is the Australian site.

The drastic course of action is set to be taken by the U.S. Trade Representative’s Office, which publishes an annual list of “Notorious Markets” that identifies online, and physical marketplaces believed to sell or facilitate the sale of counterfeit goods and pirated content claims the Wall Street Journal.

Third-party sales have become increasingly important to Amazon’s business during the past 12 months with insiders claiming that they now represent around about 18% of Amazon’s total revenue.

Those pushing for action against Amazon claim that the US retailers marketplace had become a larger source of counterfeit products and dangerous items.

Last week ChannelNews identified questionable hoverboards that are banned in Australia up for sale on the local Amazon web site along with Scooters and self-balancing scooters that are also banned in most Australian States.

Also, under investigation are Amazon sales platforms in the U.K., Canada, Germany, India and France.

In a statement to the Wall Street Journal, Amazon said that it “strictly prohibits counterfeit products in our store and we invest heavily to protect our store, customers, and brands and as a result, more than 99.9% of page views by our customers did not receive a notice of potential counterfeit infringement.”

The Notorious Markets list names and shames companies and countries that allegedly don’t take steps to stop counterfeiters. It doesn’t set official U.S. policy, but its prominence can be a public-relations problem for companies on the list and bring significant pressure to Washington’s international negotiations and interactions with them and their home countries.

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