By CultureBanx Team
- Amazon formed a ‘Counterfeit Crimes Unit’ to weed out the fake products on its platform
- African Americans could be at a greater disadvantage than their counterparts when it comes to counterfeits products sold on Amazon
Amazon has formed a ‘Counterfeit Crimes Unit,’ as pressure mounted to weed out the fake products on its platform. Even though small businesses are raking in tons of cash on the e-commerce giant’s website, African Americans could be at a greater disadvantage than their counterparts when it comes to counterfeits products cutting into their profits. Will this new initiative be enough to show customers, legislators and legitimate retailers that it’s tough on e-commerce crime?
Why This Matters: Amazon said it spent more than $500 million in 2019 to fight various forms of fraud, including counterfeit products, employing more than 8,000 people as part of the overall effort, and blocking more than 6 billion “bad listings” during the year. African American entrepreneurs reputation could be tarnished due to fake products, notably resulting in a smaller income. They are considered the fastest-growing group of entrepreneurs, but Black Americans are still a relatively small percentage of business owners.
Amazon said it spent more than $500 million in 2019 to fight various forms of fraud
Amazon’s counterfeit problem is really bad with several news outlets calling them out. A Wall Street Journal investigation in August, for example, found more than 4,100 products on Amazon.com that federal agencies had declared unsafe. A Washington Post article last fall described a “flea market of fakes” on Amazon.com, saying its system was “failing to stanch the flow of dubious goods.”
Situational Awareness: According to Small Business Trends, African-Americans made up 9.4% of small business owners in 2012. This group also saw smaller product sales. The report noted the average American business owner saw average revenues of $1.2 million in 2012, for black Americans that figure was $72,000.
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