Current anti-counterfeiting efforts are insufficient

While Amazon has implemented some robust anticounterfeiting measures— and is spending over 700 million dollars per year to protect its platform from fraud and abuse—many sellers are still marketing counterfeit goods on Amazon.114 In fact, Amazon admits that the actions it has taken are insufficient to end online counterfeiting without extensive outside help.115 While Amazon’s programs seem quite powerful, they are often optional and not every brand chooses to opt in.116 Having participation rely on affirmatively opting in reduces the number of participating brands.117 Therefore, counterfeiting can still proliferate in the face of robust and effective programs because nonparticipating brands still sell large volumes of goods.118 Further complicating Online Marketplaces’ steps to stop counterfeiting on their platforms is the positive incentive they get from having some counterfeiting present. This manifests because Online Marketplaces get a similar profit from a genuine and counterfeit article.119 Having only genuine articles (which often cost more) could reduce Online Marketplaces’ profits, which cuts against their business model. However, too much counterfeiting can lead to consumer dissatisfaction, distrust, and lower sales.120 This incentive structure leads Online Marketplaces to take public steps to combat counterfeiting to assure consumers they can be trusted, but not going as far as possible to reap some of the residual profits from counterfeiting.