I'm so done with Amazon, it's all shady Chinese companies selling counterfeits and knockoffs. I was blown away when I bought fake Dove soap the other day in perfect looking packaging. It's impossible to trust anything on there.
If you still have the counterfeit item and a copy of the correspondence between yourself and Amazon, it might be worth forwarding...
Edit: I realise I have responded to the wrong person. The point still stands, however.
What are they going to do?
Sue Amazon? All legal precedents indicate Amazon will win
Sue the fly-by-night Chinese company? How?
When I was a seller on Amazon I got a whole bunch of scam messages from scam buyers. I reported each one and marked the message "no response needed." The latter is important because you're judged on how quickly you respond to customer inquiries. The only thing that happened was my seller account got dinged for marking too many messages "no response needed."