Several manufacturers including the maker of Snuggies have filed suit against Amazon for allowing counterfeit versions of their products to be sold on the website.
Allstar Marketing Group LLC, Ideavillage Products Corp., and Ontel Products Corp. filed the lawsuit Monday against Amazon for trademark infringement, according to Reuters. The companies sell products such as Snuggies, Magic Tracks toy racetracks, and Copper Fit compression sleeves, mostly through infomercials and “As Seen on TV” advertising.
The manufacturers complained they are losing profits because Amazon hasn’t prevented companies that sell counterfeit products from being displayed on Amazon product pages alongside their products.
The counterfeit products offer impossibly low prices and attempt to convince consumers they are the real thing, the lawsuit alleges, Reuters reported. Once consumers receive the counterfeit products, they leave negative reviews that further damage the reputation of the real products, according to the lawsuit’s plaintiffs.
The lawsuit seeks unspecified amounts of lost profits and punitive damages.
In July, the Birkenstock Orthopadie company of Germany stopped selling its products on Amazon because of counterfeiters, Reuters reported.
Filed in New York, the lawsuit against Amazon also alleges Amazon is violating New York state false advertising and unfair competition laws. According to Amazon’s anti-counterfeiting policy, “customers trust that they can always buy with confidence on Amazon.com,” Reuters reported. The policy also says counterfeiters are subject to have their selling privileges taken away and that their inventory can be destroyed without reimbursement.
Amazon had no comment about the pending lawsuit Tuesday, Reuters reported.
Amazon filed two lawsuits in November in Washington state against vendors it said were selling counterfeit products.