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Amazon's anti-counterfeit team secures $180 mn in global penalties

Amazon's Counterfeit Crimes Unit (CCU), launched five years ago to combat fraudulent goods on its platform, has driven more than 200 civil actions and helped secure criminal sanctions and over $180 million in financial penalties against counterfeiters, the company said. 'Five years ago, we created the Counterfeit Crimes Unit (CCU)—a global team made up of former federal prosecutors, intelligence agents, police officers, investigators, and data analysts—all working together in partnership with brands to investigate, find, and launch legal action and criminal referrals against counterfeiters,' said Dharmesh Mehta, vice president, Worldwide Selling Partner Services, Amazon, in a company blog post. 'Over the last five years, the CCU's global reach has expanded from operating in just two countries initially to 12 countries today, including the US, China, France, India, and the UK.' 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. CCU has grown from seven government agency partnerships in 2020 to more than 50 today. It has worked with agencies such as Europol, US Homeland Security Investigations, the FBI, the City of London Police, and specialised intellectual property crime units across multiple countries. The CCU takes a proactive approach that combines advanced technology with expert investigators working together to stop counterfeits before they reach the Amazon store or customers. Using AI and machine learning, Amazon has improved detection capabilities to block more than 99 per cent of suspected infringing listings before a brand ever needs to find and report them. The systems scan for keywords, text, logos, and hundreds of other data points that can indicate potential infringement while continuously learning and improving to stay ahead of bad actors. These efforts are complemented with powerful tools such as Brand Registry and Transparency, which help brand partners more effectively protect their intellectual property. This work has also led to significant criminal prosecutions and penalties for counterfeiters worldwide, including prison sentences for more than 65 individuals. The anti-counterfeiting investigations often cross international borders, combining sophisticated detective work with law enforcement partnerships. In one case, the CCU traced counterfeit ridesharing brand products from a US-based bad actor to a network of manufacturers in China, leading to coordinated raids that seized more than 2,100 counterfeit items. Working with brands and law enforcement across multiple countries, the CCU disrupted the criminals' entire supply chain and secured a $1.1 million judgment against the primary bad actor. For such efforts, the CCU has worked with hundreds of well-known brands such as Prada, Salvatore Ferragamo, BMW, Philips, Lego, Canon, Cisco, and Brother. There are also local small businesses such as Capri Blue and family-owned card game maker Dutch Blitz. A recent example of this collaborative approach is the work with Pandora, the global jewellery brand sold in over 100 countries. Amazon and Pandora worked together to identify counterfeiters attempting to sell thousands of fake Pandora items to customers across nine European countries, including France, Germany, Spain, and the UK. 'This successful collaboration with Amazon shows how impactful joint efforts can be in stopping counterfeiting operations,' said Peter Ring, senior vice-president and general counsel, Pandora. 'By combining our global brand protection expertise with Amazon's investigative capabilities, we supported local law enforcement in dismantling a sophisticated criminal network.'