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
30 September 2021 - 11:16PM
Business Wire
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
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.
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