Senators Chris Coons, Thom Tillis introduce Shop Safe Act in US Senate

The Act proposes to amend the Trademark Act of 1946 and set up contributory trademark liability for online marketplaces based on the sale of counterfeit products by third-party sellers on their platforms.

Once enacted, it will require platforms to engage in best practices for screening and vetting sellers and goods, address repeat counterfeiter sellers, and ensure that consumers have relevant information available to them, or be held liable for the sale of counterfeit and illicit products that harm consumers.

A study conducted by the Government Accountability Office found that 20 of 47 items purchased from third-party sellers on popular consumer websites were counterfeit.

“As Americans have increasingly turned to e-commerce for convenience, selection, and safety, some third-party sellers have begun to exploit consumers’ trust in established online marketplaces to trick them into purchasing dangerous counterfeit goods,” said Senator Coons in a release.

The American Apparel & Footwear Association (AAFA) has lauded the introduction of the Act.

"Counterfeits often contain product safety or environmental risks, and evade social responsibility and sustainability rules and requirements. With this bill, online platforms must meet the same requirements, and face the same accountability, as brick-and-mortar retailers when it comes to the sale of counterfeit or illicit products that harm American consumers," said AAFA president and chief executive officer Steve Lamar.

Fibre2Fashion News Desk (DS)