Amazon Executive Grilled Over Chinese Counterfeit Products

Amazon has a sprawling marketplace for third-party sellers, but there's one major problem that's causing all kinds of headaches: Chinese counterfeit products.

According to a report by CNBC's Ari Levy, third-party sellers on Amazon are getting increasingly frustrated by Chinese counterfeit sellers who undercut prices and create fake reviews to improve seller rankings.

The report also sheds light on Amazon's weak policing measures that allow counterfeit sellers to game the system and re-open under different names even after getting caught for illicit activities.

In fact, the problem is getting so bad that 300 of the top marketplace sellers took the issue straight to Amazon's senior vice president of seller services Sebastian Gunningham at a recent private event, according to the report.