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Report: Amazon to increase law enforcement reporting on fake goods

Amazon.com Inc. is planning to increase its reporting with European and U.S. law enforcement agencies against counterfeit products on its e-commerce portals, Reuters reported Jan. 13, citing a person familiar with the program.

The Seattle-based company will report a seller's name, company name, product and contact information to authorities once it has confirmed that a business was selling fake goods, the report said. Amazon will then close the merchant's account after the company confirmed the merchant was unable to make a successful appeal through the company's typical processes, Reuters said.

The move comes amid public scrutiny over how Amazon polices its platform for counterfeit and allegedly unsafe products, Reuters said. In April 2019, the White House released a memorandum that targeted online marketplaces like Amazon for selling counterfeit products.

In February 2019, Amazon launched an anti-counterfeit initiative called Project Zero, which allows participating brands to remove counterfeit listings themselves using a self-service tool instead of the traditional way of filing a report and waiting for Amazon to take action. The company has since expanded the service to other countries such as France, Germany, Italy, Spain, India and Canada as well as the U.K.

The company also struck a deal with Apple Inc. in November 2018 that allows Amazon to remove the listings of Apple products being sold by third-party vendors that have not been authorized by Apple.

Amazon did not immediately respond to S&P Global Market Intelligence's request for comment.