Amazon Japan has been ordered to pay 35 million yen (about $244,000) in damages for permitting the sale of counterfeit goods on its platform, following a landmark ruling by the Tokyo District Court.
The case centered on the platform’s responsibility to monitor and remove fake listings. The court found that Amazon Japan failed to take adequate action against known counterfeit products, despite being informed of their existence.
The lawsuit was filed by Kobe-based companies Try and E Co., a manufacturer of medical devices, and its exclusive distributor, Excel Plan Co.
They claimed their business suffered after a counterfeit version of their pulse oximeter appeared on the same product page on Amazon at one-tenth the original price.
The court ruled in favor of Excel Plan, awarding compensation for the damages incurred. The judge emphasized Amazon's duty to implement effective anti-counterfeit measures and maintain a reliable authentication system for products sold on its site.
The plaintiffs highlighted that companies have little choice but to rely on dominant e-commerce platforms like Amazon, making it critical for such platforms to uphold rigorous standards in product verification and seller accountability.
The ruling is seen as a precedent in Japan, potentially paving the way for stricter enforcement of platform responsibilities in curbing the spread of counterfeit goods online.
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