RedCloud CEO Justin Floyd advocates for open trade and artificial intelligence in the fight against counterfeits

Combating the scourge of fake consumer products is truly a matter of life and death. The most dangerous counterfeits include pharmaceutical, children’s, cosmetic, automotive, alcohol and food products. (7) The consequences of counterfeit products can be disastrous because they are unregulated and not subject to any health and safety standards. Many counterfeit products contain carcinogens and other harmful substances and chemicals that can pose serious health risks and even death. A laboratory study of counterfeit goods conducted by the American Apparel and Footwear Association (AAFA) found that 36.2% of items tested contained alarming levels of arsenic, cadmium, phthalates and lead. (8)

It’s a never-ending loop of cause and effect. The more consumers buy counterfeit products, the more counterfeit products are produced. Floyd warns: “The dangers of tolerating, or even encouraging, this vicious cycle are incalculable and endless. We need to do something about it now, not in three years.”

Getting to the bottom of this quagmire of counterfeits requires determining exactly where these products come from. Despite recent efforts to crack down on counterfeit goods in online retail, there are too many security vulnerabilities in the e-commerce supply chain to prevent future incarnations of temporarily sidelined counterfeit cartels. RedCloud is a pioneer of open commerce, the second generation of e-commerce that uses advanced technology software such as artificial intelligence to identify the source of counterfeit products. RedCloud’s intelligent open trade platform helps FMCG brands, distributors and local sellers connect with trusted trading partners across the supply chain, ensuring that all products have been verified for quality and authenticity.

Small and medium-sized companies spend years building the reputation of their brand, which a predatory supplier of counterfeit goods can destroy in an instant. Open Commerce treats the cause, not the symptom, ensuring the integrity of every trading partner. Floyd confirms: “By investing in technology and registering in the Open Commerce environment, companies can be sure that they are buying genuine, high-quality products from the right sources and at the right price.”

About RedCloud
Founded in 2012, RedCloud Technology represents the “Rebel Alliance” leading a bold, second-generation e-commerce transformation. Rejecting the high fees charged by tech giants, RedCloud uses AI-powered supply chain solutions to empower smaller companies by giving them the tools to compete with large corporations. Their democratized cloud-based platform provides real-time financial visibility, offering a level playing field that breaks free from the dominance of conventional markets. RedCloud embodies a fairer, more inclusive future of digital commerce where Davids can challenge Goliaths. More information about RedCloud Technology can be found on their website at https://redcloudtechnology.com/.

Bibliography:

1. Matcha, Vidyullatha. “Counterfeit Amazon Products: Everything You Need to Know.” LinkedIn, January 31, 2024,linkedin.com/pulse/amazon-counterfeit-products-everything-you-need-know-matcha-w6mpc/.
2. Millions of Fake Amazon Reviews, Research Findings, cybernews.com/security/millions-amazon-reviews-fake/. Access May 14, 2024.
3. Babcock, Stephen. “60% of sales on Amazon are generated by third-party sellers.” Current, Current, May 25, 2023thecurrent.media/amazon-third-sellers.
4. “2 trillion dollars A value of counterfeit products are sold every year. Can Ai help put an end to this?” CBS News, CBS Interactive, cbsnews.com/news/ai-counterfeit-detection-amazon/. Access May 14, 2024.
5. The long “How does counterfeiting affect brands?” Potter Clarkson, potterclarkson.com/insights/how-does-counterfeiting-affect-brands/. Access May 14, 2024.
6. Person. “MSU Survey: 7 in 10 Consumers Defrauded by Buying Counterfeit Products Online.” MSUTToday, October 19, 2023msutoday.msu.edu/news/2023/msu-survey-7-in-10-consumers-deceived-into-buying-counterfeit-products-online#:~:text=Clothes%20and%20shoes%20%E2% 80 %94%20%20most harmful%20chemicals%20such%20like%20lead.
7. Chekkit technologies. “The 6 most dangerous counterfeit products – Chekkit blog.” Chekkit technologies, November 26, 2022chekkitapp.com/blog/6-most-dangerous-counterfeit-products/.
8. Ndure, Isatou. “Aafa demands answers on counterfeit goods.” Simply style, February 1, 2024just-style.com/news/aafa-demands-answers-from-e-commerce-giants-on-counterfeit-goods/?cf-view.

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SOURCE RedCloud