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Business Standard
19-06-2025
- Business
- Business Standard
Amazon steps up anti-counterfeit drive in India with AI and policing
As Amazon steps up its global campaign against counterfeit goods, India has emerged as a focal point in the company's enforcement strategy, reflecting both the country's rapid e-commerce growth and the operational complexities that come with it. Kebharu Smith, director of Amazon's Counterfeit Crimes Unit (CCU), said India remains a 'critical market' for the company, highlighting the strategic importance of protecting consumers and sellers in one of its fastest-growing regions. 'Protecting customers and sellers from counterfeits is a top priority for us,' Smith told Business Standard. India ranks among the top five countries most affected by counterfeiting, with sectors such as pharmaceuticals, fast-moving consumer goods (FMCG), electronics, luxury goods and auto parts particularly exposed, experts say. The country's counterfeit market is valued at $12 billion to $30 billion annually, forming a significant part of the global counterfeit trade, which stood at $467 billion in 2021 and is projected to surge to $1.79 trillion by 2030. In 2024, Amazon's CCU took action against more than 150 bad actors in India, filing criminal complaints with local law enforcement authorities. These efforts form part of a broader global push, in which the company identified, seized and disposed of over 15 million counterfeit products across its marketplaces, according to Amazon's fifth annual Brand Protection Report. While the volume of counterfeit products remains significant, Amazon reports tangible progress in enforcement and deterrence. The company recorded a 35 per cent decrease in valid infringement notices submitted by brands in 2024—an important indicator of improved preventive mechanisms. Much of this progress has been attributed to Amazon's investment in automated systems that detect and block counterfeit listings before they go live. 'In part, this has been driven by a more than 250 per cent increase in the number of listing attempts our automated protections proactively blocked during this same timeframe,' Smith said. Artificial intelligence Amazon is increasingly relying on artificial intelligence (AI) and machine learning to safeguard its marketplace from counterfeit products—particularly in high-growth regions like India. Smith said the company's AI-driven systems now block more than 99 per cent of infringing listings before brands even flag them. 'Globally, we continue to invest in AI and we have improved our controls, automating and scaling our intellectual property protection and counterfeit detection systems,' Smith said. These systems operate across key touchpoints—from account registration to listing updates. The company is using tools such as computer vision and large language models to detect complex intellectual property violations, including manipulated logos and visual patterns. According to Smith, these technologies allow Amazon to 'stay ahead of new and emerging bad actor tactics,' enabling scalable protection and reducing reliance on manual review. In India, where listing volumes are vast and dynamic, such automation plays a crucial role in maintaining platform integrity. Law enforcement In India, Amazon is deepening its partnerships with law enforcement, including state cybercrime units, to combat online counterfeit sales and educate consumers on safe shopping practices. 'Amazon partners with Indian law enforcement agencies, including state police cybercrime units, to educate consumers about safe online shopping practices and help identify bad actors,' said Smith. The company also collaborates with industry bodies such as FICCI Cascade and the India SME Forum to run capacity-building workshops nationwide. Marking five years of the CCU, Smith emphasised ongoing collaboration with brands and authorities to seize counterfeit goods and prosecute offenders. Amazon is also strengthening its seller verification protocols in India as part of its broader strategy to safeguard the marketplace from counterfeit activity. 'We make it straightforward for businesses to set up a selling account, but very difficult for bad actors to do so,' Smith said. The company monitors seller activity, verifies identities using government-issued IDs and analyses behavioural data to flag risk indicators. As India's digital economy expands, Smith said Amazon is working closely with start-ups and small businesses to help protect their intellectual property. Tools such as Brand Registry and IP Accelerator offer scalable solutions to secure rights and manage listings. Smith said programmes such as Project Zero and Transparency further empower brands to remove counterfeits and authenticate products. For instance, Amazon's Transparency programme, which authenticated over 2.5 billion product units globally in 2024, is gaining traction among Indian brands. The programme now includes more than 88,000 brands worldwide, ranging from start-ups to Fortune 500 companies. Such initiatives, Smith noted, are helping brands build consumer trust while strengthening defences against counterfeiting across retail channels.
Yahoo
27-03-2025
- Business
- Yahoo
India's Standards Watchdog Raids Amazon, Flipkart Warehouses
The Bureau of Indian Standards announced Thursday that it raided Amazon and Flipkart warehouses to recover counterfeits and noncompliant items. The watchdog searched Amazon's warehouse in Delhi, India, and recovered more than 3,500 products, which it said either were marked with fake Indian Standards Institute (ISI) labels or lacked the necessary label. More from Sourcing Journal Amazon Seized 15 Million Counterfeit Products in 2024 Uniqlo Sets Up Sewing, Retail Training Skills Center In India Byte-Sized AI: Walmart Announces Gen AI Merchant Tool; Oxford Industries Partners With Exotec The agency seized water heaters, food mixers and other electrical appliances, and it estimates the value of those goods came in at 7 million Indian rupees ($81,708). The announcement of the seizures came just one day after Amazon's latest Brand Protection Report boasted its strategy for preventing counterfeit products, noting that it identified and disposed of over 15 million counterfeit products last year. Amazon uses artificial intelligence and other technology to continuously monitor listings on its site for potential counterfeits and non-compliant products. The company said it is working with sellers whose products are based in the impacted Delhi warehouse to resolve any issues with the products seized by the standards watchdog. An Amazon spokesperson said the third-party sellers who hawk goods on the company's marketplace are 'required to follow all applicable laws, regulations and Amazon policies when listing items for sale,' which includes agreeing not to sell counterfeit products. 'We have proactive measures in place to prevent unsafe and counterfeit products from being listed, and continuously monitor our store. If we discover a product was undetected by our automated checks, we address the issue immediately and refine our controls. We take action to maintain a safe, compliant and authentic selection for our customers, including removing noncompliant products, and outreach to sellers, manufacturers and government agencies for additional information, when appropriate,' the spokesperson told Sourcing Journal in an emailed statement. The Bureau of Indian Standards also carried out a raid on an Instakart—not to be confused with Instacart—warehouse in Delhi. Instakart is a subsidiary of Walmart-owned Flipkart, a popular Indian e-commerce company. From that warehouse the agency seized about 590 pairs of footwear, which it said were worth about 600,000 rupees, or $7,000. The seized items purportedly lacked the necessary ISI mark and other critical information. Flipkart did not respond to Sourcing Journal's request for comment about the raid. India's e-commerce market is only expected to increase in the coming years. By 2029, Markets and Research projects that it will have more than 500 million e-commerce shoppers. As the number of consumers grows, the research firm projects rapid, simultaneous growth for the e-commerce market in the country. It estimates that, by 2029, it will be worth 53.42 trillion rupees (over $634 billion), up from 8.42 trillion rupees ($70.4 billion) in 2023. Today, Amazon is still the most widely visited e-commerce site in India, with Flipkart following behind. But as the two companies' total addressable market grows, so too do its scrutinizers; the Delhi raids are among several that the standards watchdog has carried out recently against the e-commerce giants. The agency announced last week it had carried out similar raids on Amazon and Flipkart warehouses in Thiruvallur, India. It seized more than 3,300 items from Amazon in that operation, and at the Flipkart warehouse it grabbed more than 350 non-compliant items. The two firms now face potential legal action for violating Indian quality control laws.
Yahoo
26-03-2025
- Business
- Yahoo
Amazon Seized 15 Million Counterfeit Products in 2024
Amazon continued its crusade against counterfeits in 2024, its latest Brand Protection Report shows. According to the data, Amazon pinpointed and disposed of more than 15 million counterfeit products across the globe last year, which it contends prevent consumer harm or continued resale of such products on other platforms. More from Sourcing Journal Amazon Files Lawsuit Against Consumer Product Safety Commission Over Recall Requirements Coach's Owner Tapestry Files Trademark Infringement Suit Against Shein One-Tenth of Amazon Products Have an Identical Match on Temu The e-commerce behemoth uses artificial intelligence and other technology to monitor the listings on its platform for similarities to a brand's logo, trademarks and name—and to determine if significant changes are made repeatedly to a listing, whether in photos, item name or otherwise. That process encompasses a variety of tools and partnerships that Amazon has cultivated in recent years. And, per the company, its efforts have paid off; it stated that, in 2024, it proactively caught 99 percent of potentially infringing listings before brands ever had to flag items for removal. The company has seen growing interest and involvement in its counterfeit-related programs, which see participants from a slew of industries, including fashion, apparel and footwear, where counterfeits have long proven to be an especially touchy subject. Zach Toczyński, senior director of global brand protection for Levi Strauss & Co., said the company has held a 'long-term partnership' with Amazon on brand protection, which has helped proactively protect the various brands under its umbrella. 'We commend Amazon for their dedication and the excellent results we've achieved together. This partnership is a key component of our global brand protection strategy, and we look forward to continuing our work together in the years to come,' Toczyński said in a statement. 2024 Corsearch data estimated that, in 2023, counterfeit movement accounted for 3.3 percent of all global trade and projected that, by 2030, that would increase to 5 percent. And brands and retailers aren't taking the counterfeiting lying down; many have filed lawsuits against counterfeit sellers on various marketplaces, and the American Apparel & Footwear Association (AAFA)—in tandem with more than a dozen other industry interest groups—urged President Donald Trump to take action on counterfeit items within his first 100 days as president. Should he do so, it could be indicative that he feels the issue is one of serious global importance for industry. In the meantime, private industry, Amazon included, has chosen to target the proliferation of counterfeits on its own. In 2020, Amazon launched its Counterfeit Crimes Unit (CCU), which bridges private industry, customs agencies, law enforcement professionals and more to take action against bad actors on Amazon. Since its launch, the CCU has brought legal action against or referred to law enforcement more than 24,000 bad actors, Amazon said. Last year, the CCU increased its connection with Chinese law enforcement agencies and brands, which Amazon said was directly correlated to more than 60 raids, which identified over 100 bad actors. 'This collaboration resulted in numerous criminal convictions, including fines and prison sentences,' Amazon said in the report. The company further noted that, through its collaboration with U.S. and Japanese customs, it was able to halt at least 90,000 counterfeit items from reaching their destination, preemptively removing them from the supply chain before they could negatively impact a consumer. The company said it recognizes that it has yet more work to do in preventing fakes and bad actors from selling on its platform, but Dharmesh M. Mehta, vice president of worldwide selling partner services for Amazon, said he's excited about what the company achieved last year.'We understand that customer trust is difficult to earn and easy to lose, which is why trust is at the foundation of the relationships we build and the products and services we invent on behalf of our customers, brands, and selling partners,' Mehta said in a statement. 'We are proud of the progress we have made in preventing counterfeits within the Amazon store. This has required significant innovation and perseverance, and it would not be possible without the partnerships we have been able to build with brands, associations, policymakers, law enforcement, and others. While we believe we have made a great deal of progress, we remain committed to continued innovation and progress, and we will not rest until we drive counterfeits to zero.'
