Amazon Counterfeit Crimes Unit Reaches Settlement with Influencers Who Ran Social Media Counterfeiting Scheme, Permanently Banning them from Amazon’s Store and Securing Financial Payments to be Donated to Support Anti-Counterfeiting Awareness

Rhea-AI Summary

Amazon (NASDAQ:AMZN) announced a settlement with Kelly Fitzpatrick and Sabrina Kelly-Krejci, who promoted counterfeit luxury goods on social media, directing sales to Amazon's platform. The settlement includes payments that will be donated to the International Trademark Association's ‘Unreal’ Campaign, aimed at educating young consumers about intellectual property rights. The defendants will also assist in Amazon's ongoing investigation into counterfeit sellers and are prohibited from marketing on Amazon without permission. This reflects Amazon's commitment to combat counterfeiting and protect its brand integrity.

Positive

• Settlement reached will lead to funding for consumer education on intellectual property rights.
• Defendants agreed to assist in ongoing investigations of counterfeit activities.

Negative

• The presence of counterfeit luxury goods affects Amazon's brand reputation.
• The lawsuit indicates ongoing challenges in preventing counterfeit sales on the platform.

Scheme promoted counterfeit luxury brand products on Instagram, TikTok, and Facebook and directed customers to product listings in Amazon’s store that evaded counterfeit measures by appearing to be generic, non-infringing products, while the counterfeit items would, in fact, be shipped to customers

Amazon to donate settlement payments to the International Trademark Association’s ‘Unreal’ Campaign that educates 14 to 23 year olds on the importance of intellectual property rights

SEATTLE--(BUSINESS WIRE)-- Amazon (NASDAQ:AMZN) today announced a settlement with Kelly Fitzpatrick and Sabrina Kelly-Krejci who used TikTok, Instagram, and Facebook to promote and facilitate the sale of counterfeit luxury fashion goods in Amazon’s store, as well as on other online marketplaces. In the lawsuit, filed in November 2020 in the United States District Court for the Western District of Washington, Amazon showed that the individuals conspired to promote counterfeit luxury brand products on social media sites and directed customers to product listings in Amazon’s store that evaded counterfeit measures by appearing to be generic, non-infringing products, while the products shipped to customers would be the counterfeit items promoted on social media.

As part of the settlement, Fitzpatrick and Kelly-Krejci will make settlement payments to Amazon, which will be donated to charities including the International Trademark Association’s (INTA) Unreal Campaign, a consumer awareness initiative to educate 14 to 23 year olds about the importance of intellectual property rights.

Fitzpatrick and Kelly-Krejci have also agreed to fully and unconditionally cooperate with Amazon’s investigation of, and legal action against, the remaining defendants, as well as suppliers and other bad actors who are involved with the promotion and sale of counterfeit products.

“We are pleased that this settlement has resulted in the individuals recognizing the harm they caused, assistance for our investigation moving forward, and that charities will benefit from the recovered funds,” said Kebharu Smith, director of Amazon’s Counterfeit Crimes Unit. “This settlement sends a strong message to would-be bad actors that Amazon will find you and hold you fully accountable.”

Pursuant to a consent decree, Fitzpatrick and Kelly-Krejci are prohibited from directly or indirectly marketing, advertising, linking to, promoting, or selling any products of any kind on Amazon’s store in the future, without express written authorization from Amazon.

Additionally, the defendants apologized for their actions. Kelly-Krejci said, “I appreciate the opportunity to resolve this dispute and to assist Amazon.” And Fitzpatrick added, “I would warn others engaged in similar conduct on social media that there will be serious consequences for their actions.”

The court filings are available here:

• Case: 2:20-cv-01662, United States District Court for the Western District of Washington

In June 2020, Amazon launched its Counterfeit Crimes Unit, a global team dedicated to pursuing counterfeiters and holding them accountable to the fullest extent of the law, including by working through the court system and in partnership with law enforcement. Amazon has filed a series of lawsuits against counterfeiters, including joint lawsuits with technology company GoPro, apparel manufacturer HanesBrands, and outdoor products manufacturer YETI.

Amazon strictly prohibits infringing and counterfeit products in its store, uses industry-leading tools to verify potential sellers’ identities and ensure product listings are authentic, and its proprietary systems analyze hundreds of unique data points to verify information provided by potential sellers. In 2020, only 6% of attempted new seller account registrations passed Amazon’s robust verification processes and listed products for sale. In addition, fewer than 0.01% of all products sold on Amazon received a counterfeit complaint from customers.

Amazon has an extensive history protecting brands and taking action to hold bad actors accountable:

• Amazon and GoPro File Joint Lawsuit against Counterfeiters
• Amazon and Asmodee File Joint Lawsuit Against Counterfeiters
• Amazon and HanesBrands File Joint Lawsuits Against Infringers of Champion Trademarks
• Amazon Published Comprehensive Brand Protection Report Demonstrating Progress Toward Driving Counterfeits to Zero
• Amazon Establishes Counterfeit Crimes Unit to Bring Counterfeits to Justice
• Amazon Launches IP Accelerator in Europe to Help Small Businesses Protect Their Brands and Tackle Counterfeit
• IPR Center, Amazon Launch ‘Operation Fulfilled Action’ to Stop Counterfeiters
• Amazon and YETI File Joint Lawsuit against Counterfeiters
• Amazon and Salvatore Ferragamo File Two Joint Lawsuits Against Counterfeiters

About Amazon

Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth’s Most Customer-Centric Company, Earth’s Best Employer, and Earth’s Safest Place to Work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. For more information, visit amazon.com/about and follow @AmazonNews.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210930005617/en/

Amazon.com, Inc.

Media Hotline

Amazon-pr@amazon.com

www.amazon.com/pr

Source: Amazon

FAQ

What was the recent settlement involving Amazon and counterfeit goods?

Amazon settled with individuals promoting counterfeit luxury goods on social media, directing sales to its platform.

What will happen to the settlement payments from the counterfeiters?

The settlement payments will be donated to the International Trademark Association’s ‘Unreal’ Campaign.

How is Amazon addressing the issue of counterfeit products?

Amazon launched its Counterfeit Crimes Unit to pursue counterfeiters and enforce strict measures against infringing listings.

What consequences did the counterfeiters face in their settlement with Amazon?

They are prohibited from marketing on Amazon and must assist in ongoing investigations into counterfeit sales.

How does Amazon protect against counterfeit products?

Amazon employs a robust verification process, with over 94% of new seller accounts failing to meet their standards in 2020.