How do unauthorized sellers online hurt the economy and consumers?

As one of the largest online marketplaces, Amazon unauthorized sellers pose a risk to the economy, brand owners, and consumers because they:

  • hurt profits of name brand companies as well as tarnish brand reputation with bad product;

  • consumers can get damaged, counterfeit, or even stolen products without the expected warranty or consumer protections;

  • consumers could be buying off-market or gray market product that was never meant to reach such consumers;

  • pricing comparisons for seemingly same product that aren’t actually the same can misguide consumers and drive sales away from legitimate products; and

  • consumer safety is at risk with product that can be out of date, contain undisclosed ingredients, and could cause health risk. 

Read about how unauthorized sellers hurt brand owners and consumers.

Klemchuk LLP

This blog is published by Klemchuk LLP, a litigation, intellectual property, transactional, and international business law firm dedicated to protecting innovation. The firm provides tailored legal solutions to industries including software, technology, retail, real estate, consumer goods, ecommerce, telecommunications, restaurant, energy, media, and professional services.

The firm publishes Ideate, a blog discussing the latest news and insights into intellectual property law, business, and culture.

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