business news in context, analysis with attitude

The Seattle Times reports that Apple is filing a lawsuit over the sale of products on Amazon that it says were counterfeits.

According to the story, Apple "is suing Mobile Star, a New Jersey company it says is the source of the products. The lawsuit was filed Monday in U.S. District Court in the Northern District of California ... Apple says its investigators purchased 100 Apple-branded products 'sold as genuine' by independent merchants on Amazon’s site, and almost 90 percent turned out to be fake."

The story goes on to say that "the Mobile Star case is especially interesting because it indicates that Amazon’s own retail unit, which benefits from trust garnered by the Seattle company’s carefully protected brand, may have been hoodwinked into selling counterfeit chargers and other items.

"Apple said in the suit that Amazon pointed the finger at Mobile Star as the source of the majority of the products identified as counterfeit. Amazon turned over to Apple additional inventory it had purchased from the New Jersey distributor, the lawsuit said."
KC's View:
This is something that Amazon is trying to come to terms with, obviously to varying levels of success. Its reputation and credibility are dependent on its ability to stand behind the veracity of the products that it sells.