Saturday, February 15, 2020

Welcome to the Era of Fake Products

Imagine walking into your local grocery store and seeing two virtually identical cartons of milk right next to each other. The only discernible difference—and it’s barely discernible—is that there’s a tiny tag on one carton saying the milk is sold by a third-party seller. Oh, and it might have rat poop in it.

This scenario isn’t all that far from what’s happening in e-commerce retailers’ massive, hard-to-police markets of third-party sellers.

The rise of counterfeit goods and other phony products sold on the Internet has been swift—and it has largely gone unnoticed by many shoppers. But make no mistake: The problem is extensive. Most people don’t realize this, but the majority of listings on Amazon aren’t actually for items sold by Amazon—they’re run by third-party sellers. And even though many, many third-party sellers are upstanding merchants, an awful lot of them are peddling fakes.

A major Wall Street Journal investigation recently revealed that Amazon has listed “thousands of banned, unsafe, or mislabeled products,” from dangerous children’s products to electronics with fake certifications. The Verge reported that even Amazon’s listings for its own line of goods are “getting hijacked by impostor sellers.” CNBC found that Amazon has shipped expired foods—including baby formula—to customers, pointing to an inability to monitor something as basic as an expiration date. Because of the proliferation of counterfeits and what Birkenstock describes as Amazon’s unwillingness to help it fight them, Birkenstock won’t sell on Amazon anymore. Nike announced that it is also pulling out of Amazon. “Many consumers are … unaware of the significant probabilities they face of being defrauded by counterfeiters when they shop on e-commerce platforms,” reads a January 2020 Department of Homeland Security report (PDF) recommending measures that would force e-retailers to take counterfeits even more seriously. “These probabilities are unacceptably high and appear to be rising.”

This is something we care a lot about here at Wirecutter. After all, we’re in the business of recommending the best products to our readers. We want to make sure that if you act on our advice, you actually get the top-quality product we’re recommending and not some third-rate knockoff.

Over several months of research, we were able to purchase items through Amazon Prime that were either confirmed counterfeits, lookalikes unsafe for use, or otherwise misrepresented. We talked with many brands about the rise of fakery and their efforts to combat it. And we tried to understand the new landscape of counterfeits and how to navigate it, so that you can as well.

Amazon, too, is clearly aware of the problem and is taking plenty of measures to combat counterfeits on its site. But critics say its efforts are not nearly enough. (Read more about Amazon’s efforts to fight counterfeits here.)

In the 2010s, the spread of misinformation and “fake news” meant learning to consume articles and news programs with skepticism. In this decade, as e-commerce sites increasingly become our go-to for nearly every purchase we make, the proliferation of fake products—and fake reviews—will similarly train a generation of consumers to be skeptical and careful about what they buy.

Welcome to the era of fake products.

by Ganda Suthivarakom, Wirecutter | Read more:
Image: Sarah MacReading