Amazon has finally admitted to investors that it has a counterfeit problem

Yes, it's sad. I buy lots less from Amazon than I used to. Their policy about commingled binning for items with a given SKU, regardless of the source, is insane. All counterfeits with packaging that passes the smell test get commingled. So it doesn't matter what seller you buy from. You're just as likely to get counterfeits from actual manufacturers as from counterfeiters. That is, unless the manufacturer jumps through hoops, and pays a bigger cut to Amazon, to get dedicated binning.

I do get that this isn't Amazon's unique problem. Perhaps more frightening, it's how pharmaceuticals are handled in the US. A manufacturer sells some drug, identified by an NDA number. That's basically a SKU, and it specifies the drug, dosage form, strength, package size, etc. Some hospitals and pharmacies buy directly from manufacturers. Some buy via wholesalers. And there can be multiple layers of wholesalers. So there's opportunity to introduce counterfeits. And stuff gets commingled in the process, according to NDA.

And it can get stranger. Say a pharmacy goes out of business, or has a fire. Any "undamaged" pharmaceuticals get sold on "grey markets". Or sometimes jerks introduce counterfeits. Or repackage stuff in counterfeited packaging, posing as a higher dose. And eventually all this stuff ends up in hospitals and pharmacies, who have no clue about provenance. If it's the right NDA, and not expired, and looks OK enough, it gets dispensed.

It's a hard problem. The pharmaceutical industry has been introducing RFID tracking. And probably now blockchain signing, or whatever. That's probably the only viable option for everything. Every object has an identity, which you can verify back to the manufacturer.

 

Paging Big Brother: In Amazon’s Bookstore, Orwell Gets a Rewrite
As fake and illegitimate texts proliferate online, books are becoming a form of misinformation
August 19, 2019
https://www.nytimes.com/2019/08/19/technology/amazon-orwell-1984.html

 

This has been my concern with electronic books from the beginning. Once they are no longer printing books they can rewrite history any way they would like and there is nothing you can do about it. If anyone even notices. I know they can introduce changes in reprints of print books as well but that is far more likely to be noticed.

 

That's happened ~forever, even before there was writing. And it's prevalent wherever societies are especially dogmatic.

So sure, it's easier for digital stuff. But detecting changes is also much easier for digital stuff.

 

Amazon is reportedly listing thousands of unsafe or banned products
A new investigation finds thousands of unsafe products for sale
August 23, 2019
https://www.theverge.com/2019/8/23/...third-party-unsafe-banned-products-wsj-report

 

Ummmm:

"Amazon can be held liable for third-party seller products: U.S. appeals court..."

https://www.reuters.com/article/us-...ller-products-u-s-appeals-court-idUSKCN1TY2HM

 

Senators demand answers from Amazon about unsafe products
August 29, 2019
https://www.engadget.com/2019/08/29/senators-amazon-unsafe-products-letter/

 

"How Amazon’s quest for more, cheaper products has resulted in a flea market of fakes

Former executives say e-commerce giant, which last year spent $400 million fighting fraud and abuse, has prioritized its broad selection over anti-counterfeiting...

The continued abundance of counterfeit goods on the site is the result of Amazon’s decisions to prioritize a broad selection of products and cheaper prices over the deployment of aggressive technologies and policies that could further stem the problem, according to former executives and outside consultants. Amazon relies on brands to let the company know about frauds, but even when the company has custody of counterfeit items, it doesn’t always take action. Scads of counterfeit products ...land in Amazon warehouses before they’re shipped to consumers. But Amazon very rarely inspects them for authenticity..."

https://www.washingtonpost.com/tech...aper-products-has-resulted-flea-market-fakes/

 

"U.S. Signals Crackdown on Counterfeit Goods Sold Online

Trump administration targets e-commerce operators with broader enforcement in effort to compel companies’ help rooting out fakes

WASHINGTON—The Trump administration is moving to curb the sale of imported counterfeit goods over the internet, warning electronic commerce platforms and warehouse operators of greater scrutiny and penalties if they don’t help ferret out fakes.

The Department of Homeland Security is set to release a report Friday outlining its immediate actions and longer-term goals for enlisting e-commerce players to combat counterfeit products that officials say undermine U.S. technology and manufacturing,brick-and-mortar stores..."

https://www.wsj.com/articles/u-s-signals-crackdown-on-counterfeit-goods-sold-online-11579820400

 

without paywall:
US announces crackdown on counterfeit products sold online
January 24, 2020
https://thehill.com/policy/technology/479852-us-announces-crackdown-on-counterfeits-online

Amazon expected to face significant additional costs due to new anti-counterfeiting rules
January 27, 2020
https://mspoweruser.com/amazon-expe...l-costs-due-to-new-anti-counterfeiting-rules/

 

Trump order seeks to reduce online sales of counterfeits
February 1, 2020
https://apnews.com/3ae46016533710ea8340f123c6c81600

 

Some third-party merchants on Amazon are putting claims that their goods prevent the coronavirus in product images to bypass detection

"Amazon vowed to crack down on coronavirus profiteering. Some sellers have figured out loopholes. Some third-party merchants on Amazon are putting claims that their goods prevent the coronavirus in product images to bypass the e-commerce giant’s detection..,."

https://www.washingtonpost.com/tech...=wp_main&utm_medium=social&utm_source=twitter

 

Amazon sellers will need to list their business name, address on their profiles
July 8, 2020
https://www.cnet.com/news/amazon-se...heir-business-name-address-on-their-profiles/

 

Amazon Project Zero arrives in seven more countries
August 11, 2020
https://www.neowin.net/news/amazon-project-zero-arrives-in-seven-more-countries

 

"Professional shoe sniffers part of eBay Authentication Guarantee programme...

It’s all part of the eBay Authentication Guarantee programme which is rolling out in the UK to verify that fake trainers aren’t sold on the platform...

Professional shoe sniffers can literally smell a pair of fakes as each brand and type of trainer apparently has it’s own distinctive smell! It’s all part of the job and ensures buyers can relax in the certainty that when they’re spending hundreds (or even thousands!) of pounds on the rarest of rare trainers that they will actually receive the genuine article.

Authentication centers and are launching in the UK, Australia, and Canada this quarter..."

https://tamebay.com/2021/04/profess...-ebay-authentication-guarantee-programme.html

 

Smells fishy to me. This isn't Amazon's main problem, by a long chalk.