Case Study: A Cautionary Tale of Making False Counterfeit Claims
First, a sad but true story…
A few months ago, a brand contacted us and stated that they were taking brand protection in-house, and their legal team would be getting more involved. Their legal team was becoming very effective at removing unauthorized sellers. We were happy for them, although we were slightly skeptical, given our close working relationship with them.
We went to check on them a few weeks later, and they said they were doing great! Their new secret weapon? They were submitting counterfeit claims for all sellers without verifying that the products were counterfeit.
We could not have jumped faster and strongly advised them to stop. These are potentially false claims and can expose them to severe liability, both for their Amazon account and in a legal context.
Well... fast forward some time, and they called us and said that two resellers were fighting the claim— which could expose their false allegations and opens them up to being sued for $50K each (if pursued) due to lost profits because the sellers’ accounts were suspended, and since it was a false claim—reputation damage.
So, can ThornCrest fix this issue?
No. There's nothing to be done now, and there are no shortcuts. If it seems too good to be true, or if you think there is a straightforward solution, it probably is too good to be true, and there aren't easy solutions.
Brand Protection safeguards your brand's assets, protecting your business and its revenue.
Build it into your budget! It is a tool for building a successful, long-term business.
Dear beloved brands,
Stop submitting counterfeit claims! Your account could be suspended, and you could be made liable for damages!
Dissecting the Mistake: Where It All Went Wrong
1. Replacing Expertise With Assumptions
The brand assumed that its in-house legal team could handle brand protection with the same accuracy and insight as a dedicated partner. While legal counsel plays a vital role, brand protection- especially on platforms like Amazon- requires nuanced experience in enforcement protocols, evidence gathering, and platform compliance.
What Went Wrong:
They acted on assumptions, not verified procedures. Submitting counterfeit claims without proof is not only reckless—it’s potentially defamatory.
2. Misusing the Counterfeit Tool
The team began submitting counterfeit claims against all unauthorized sellers, regardless of whether the goods were actually fake.
Why That’s a Problem:
Amazon takes these claims seriously.
False counterfeit claims violate Amazon's policy and can lead to account suspension.
More dangerously, they can result in legal action—as seen in this case.
3. Legal and Financial Exposure
Two resellers decided to fight back, which could lead to $50,000 lawsuits per claim for lost profits and reputational damage.
The Real-World Consequences:
Expensive legal battles
Damaged relationships with resellers
Ruined brand credibility
Potential long-term harm to their Amazon standing
What Could’ve Been Done Differently
Verify Before You Accuse:
Every counterfeit claim should be backed by documented proof—purchased samples, manufacturer verifications, etc.Don’t Skip Professional Support:
ThornCrest specializes in precisely this nuance. A trusted partner will understand how to navigate platform-specific rules legally and strategically.Build Brand Protection Into Your Operating Strategy:
This isn’t a "nice to have"—it’s part of protecting your bottom line, reputation, and future scalability.
Final Thoughts: No Shortcuts, No Substitutes
This story is a wake-up call. Brand protection is not a DIY project, and missteps carry heavy consequences. Whether you're just getting started or you’ve grown confident in your internal legal capabilities, resist the urge to "simplify" enforcement.
If it seems too easy, it probably is.
Safeguard your brand. Invest in a strategy that’s built to last. ThornCrest is here to help—before things go sideways.
FYI
📉 $100,000+
Potential legal exposure this brand faced after just two false counterfeit claims.
📦 84% of unauthorized sellers are legitimate resellers—not counterfeiters.
Blanket accusations can backfire quickly.
Source: Amazon Transparency Report, Q2 2023
📌 3 Things You Risk With a False Counterfeit Claim:
Seller account suspension
Civil lawsuits from resellers
Permanent brand trust damage
⚠️ Amazon Policy Reminder:
“Submitting false counterfeit claims is a violation of Amazon's policies and can result in removal of selling privileges.”
📈 Protecting Your Brand = Protecting Revenue
Brands that invest in proactive protection report 25–40% stronger MAP compliance and higher review ratings over time.
