Amazon finally taking action
On Monday, a lawsuit against sellers of counterfeit goods was filed for the first time by Amazon in Washington state court. Businesses have repeatedly told Amazon of the impact counterfeit goods are having on their own sales. It not only disadvantages the seller but also the buyer. Counterfeit goods are not necessarily safe or tested. This can be seen from the lawsuit filed by Apple suing Mobile Starr for selling fake power adapters and charging cables on Amazon.
To tackle this problem, Amazon has reportedly spent tens of millions of dollars in order to identify sellers of fake items. They will also begin charging $1,500 as a starter fee and require invoices from manufacturers to prove authenticity. Around half of the products advertised on Amazon’s website come from third-party sellers. The actions of counterfeit sellers undermine Amazon’s reputation and the trust it has with consumers. Therefore, the company is hopeful that the commencing lawsuit will deter future counterfeit sellers from the site.
Further information on the lawsuit can be found here.
Samsung’s new focus
Samsung Electronics has announced its plan to buy U.S auto-parts supplier Harman International Industries for a cash sum of $8 billion. This will be the biggest acquisition in Samsung’s history and gives the company the chance to finally enter the longed-for automotive industry. Last year, a task force was assembled by Samsung to research the industry for growth opportunities, looking at ways to enter through possible acquisitions or expansion on their own.
The plan is to integrate Samsung’s products into Harman’s existing technology and hopefully benefit from increased sales of its accessories. Harman is the market leader, which already provides its products to automakers such as BMW, Toyota and Volkswagen. This enables Samsung to immediately have a hold in the market with the established relationships Harman has developed over time. It also gives Samsung the opportunity to expand its outlook and try to redeem itself after the failure of its Galaxy note 7. The acquisition should benefit both companies, delivering an enhanced product and experience for the consumer. The closing date of the acquisition is predicted for mid-2017.
Find out more on the acquisition here.
UPS strikes- luckily not until after Christmas
On Monday, UPS’s air maintenance workers voted in favor of a strike against the current offered healthcare and wages. 98% of the 960 that voted chose to strike. They are against the reduction in healthcare for workers and the benefits given for retirees. The work that is performed by these particular workers exposes them to harsh chemicals from the aircraft engines and is very physically demanding.
After over 3 years of negotiations, they finally decided to take further action. However, due to regulations, a strike cannot happen right away. It could take over 60 days to be authorized due to the need for government interference and approval. This therefore means a strike before Christmas is unlikely, benefiting UPS’s operations. An estimate of over 700 million packages will be delivered worldwide in this holiday period and a strike would have resulted in major disruptions.
Read more on the process of the strike here.
Have a great weekend!