Counterfeit CDs still causing major issues for music industry

According to an investigation carried out by US record label trade group the RIAA, 23% of all CDs sold on top online retailer Amazon are counterfeit.

The Recording Industry Association of America launched its investigation into CD piracy in August.

The study examined Amazon first. The RIAA placed 194 orders for music CDs based on the top search results for each type of album. 44 CDs, or approximately 1 in 4 CDs, were counterfeit. If the RIAA had placed an order for a "greatest hits" package only, the percentage of counterfeits would be 78%.

According to a letter written by the RIAA to the Office of the US Trade Representative (USTR), each were traced back to a CD manufacturing plant in China.

“The artwork, packaging and inserts are carefully copied in fine detail. The untrained eye would not even be able to identify them as counterfeits,” read the letter.

The RIAA’s investigation preceded a warning handed down by A2IM regarding Amazon. The warning delivered two weeks ago called out Amazon’s FBA (Fulfilled by Amazon) system which it said hosts a "serious counterfeit operation selling large numbers of CDs.”

"It appears that this product is manufactured in China, but is almost indistinguishable from the genuine article to the extent that even the legitimate manufacturer cannot tell without very close examination,” said the A2IM.

The A2IM found Chinese pirates sell the CDs for just under cost price and that Amazon doesn’t currently have a system to verify the CDs.

Speaking to Wall Street Journal, RIAA EVP Brad Buckles said: “Amazon should not be playing host to illegal items that would normally be found on the black market.”

In a statement to the Wall Street Journal, an Amazon spokeswoman said the platform will be “working closely with labels and distributors to identify offenders, and remove fraudulent items from our catalogue. We are also taking action and aggressively pursuing bad actors.”

One major label told the Wall Street Journal’s Hannah Karp that direct-to-consumer CD sales were flat in some European markets. Meanwhile, Amazon account sales were down over 17% this year due to counterfeit CDs.