Azernews.Az

By Alimat Aliyeva

A Japanese court on Friday fined the Japanese unit of Amazon 35 million yen (approximately $244,000) for enabling the sale of counterfeit products on its platform, in a landmark ruling that reinforces the responsibilities of online marketplaces to protect both sellers and consumers, Azernews reports.

The Tokyo District Court found Amazon Japan liable for failing to take sufficient action to prevent the sale of fake pulse oximeters—medical devices used to measure blood oxygen levels—despite being notified of the issue. The court stated that Amazon failed to remove counterfeit listings in 2021, even though it was aware they were fraudulent. This negligence ultimately impacted the sales of legitimate products.

The lawsuit was filed by Try and E Co., the medical equipment manufacturer, and Excel Plan Co., its distributor. While the plaintiffs sought 280 million yen in damages, the court awarded compensation only to Excel Plan.

Counterfeit versions of the pulse oximeters were sold on Amazon’s platform at prices approximately 10% lower than the authentic models, which affected the genuine product’s visibility in Amazon's algorithm-driven search results that prioritize lower-priced items. The lawsuit claimed that when Excel Plan reported the issue and requested Amazon’s intervention, it was the legitimate listing that was removed, not the counterfeit products.

"The ruling is a landmark in terms of acknowledging the obligation to establish an appropriate authentication system, as businesses have practically no other choice but to use platforms like Amazon," said a lawyer representing the plaintiffs.

This ruling could have far-reaching implications for e-commerce platforms around the world, particularly as counterfeit products have become an increasing concern. As more consumers shop online, platforms like Amazon are facing growing pressure to ensure product authenticity and take swift action against fraudulent listings. This case could set a precedent for future legal actions against other online marketplaces.