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.
AloJapan.com