October 06, 2020
3M Intensifies Crackdown on COVID-Related Fraud
The parent company of Top 40 promo supplier 3M/Promotional Markets is on a mission to stop profiteers from exploiting demand for its products.
3M, parent company of Top 40 promotional products supplier 3M/Promotional Markets (asi/91240), is stepping up efforts to combat fraud, counterfeiting and price-gouging related to products like its N95 respirator masks, for which there has been rampant demand during the coronavirus pandemic.
3M announced Monday, Oct. 5 that it has launched hotlines around the world to report suspected fraud and has created online resources to help spot price gouging, identify authentic 3M respirators and ensure products are from 3M authorized distributors.
The efforts build on extensive actions 3M has already taken to stop crooks and profiteers from exploiting the strong demand for 3M products used by healthcare workers and first responders during COVID-19.
3M has investigated more than 7,700 fraud reports globally, filed 19 lawsuits, and has been granted nine temporary restraining orders and seven preliminary injunctions. More than 13,500 false or deceptive social media posts, over 11,500 fraudulent e-commerce offerings and at least 235 deceptive domain names have been removed. 3M has also been awarded damages or has received settlement payments in seven cases, with all proceeds being donated to COVID-19 related charities.
Authorities have accused some in the promotional products industry of illicit activity related to 3M products. John Anthony Taylor, owner of Utah-based distributor Wasatch Promotional Products and other companies, is charged with wire fraud over an alleged scheme that sought to exploit the need for N95 masks. He has denied any wrongdoing, saying it’s all a misunderstanding and that no fraud was intended.
Since the pandemic began, 3M has worked with customs and law enforcement agencies around the world to seize approximately 3.5 million counterfeit respirators, either as the products are moving through customs, or in targeted raids against suspected resellers and manufacturers of counterfeit products.
3M is also engaged with many major e-marketplace operators to detect and disrupt fraudulent and counterfeit respirator offers, including Amazon, Alibaba, Mercadolibre, Lazada, eBay, Flipkart, Shopee, Made-in-China and several others.
With estimated 2019 North American promotional product revenue of $88.4 million, 3M/Promotional Markets ranked 17th on Counselor’s most recent list of the largest suppliers in the industry.