US lawmakers introduce bipartisan bill to make online sellers liable for counterfeit products News
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US lawmakers introduce bipartisan bill to make online sellers liable for counterfeit products

A bipartisan group of US representatives introduced a bill Monday to prevent the internet sale of counterfeit goods. The Stopping Harmful Offers on Platforms by Screening Against Fakes in E-Commerce Act (SHOP SAFE Act) would hold internet platforms liable under trademark law for third-party sites selling counterfeit goods sold on the platform.

The group cited the president’s 2019 Memorandum on Combating Trafficking in Counterfeit and Pirated Goods as the impetus for congressional action. In the memorandum, the president described the growing problem of counterfeit goods in internet commerce:

An estimate from the Organisation for Economic Co-operation and Development (OECD) indicates the value of trade in counterfeit and pirated goods to be approximately half a trillion dollars per annum, with roughly 20 percent of this trade infringing upon intellectual property belonging to United States persons. A recent Government Accountability Office report examined four categories of frequently counterfeited goods, and, based on a small sample of these goods purchased through various online third-party marketplaces, found that more than 40 percent were counterfeit.

Among the more concerning counterfeit items, the group of legislators listed cosmetics, baby formula, batteries, airbags and car seats. Many of these items do not undergo safety testing before sale on platforms. The group of legislators considered Department of Homeland Security recommendations to respond to such threats.

The House has yet to assign a committee to the bill.