It is learned that after the Consumer Notification Act came into effect, the United States is brewing a new e-commerce anti-counterfeiting bill. On September 28, Delaware Democratic Senator Chris Coons and Republican Senator Thom Tillis proposed the Store Safety Act, which requires e-commerce platforms to conduct more reviews of counterfeit goods.

It is reported that in the last session of the United States, the "Store Safety Act" was proposed as a means to combat the sale of counterfeit products together with the "Consumer Notification Act". The latter was widely supported by brands and markets and passed. The bill requires e-commerce platforms to verify the information of third-party sellers, including identity, contact information and bank account information.

The Shop Safe Act goes further than the Consumer Notification Act and requires these platforms to conduct more reviews of counterfeit goods, otherwise they will be legally responsible for counterfeit goods that appear on the platform. The bill has received widespread support from retail lobbying groups such as the American Apparel and Footwear Association, the Toy Association and the National Association of Manufacturers.

The harm of counterfeit goods continues to spread in the United States, and legal intervention has become inevitable

It is reported that the introduction of a number of bills, such as the Consumer Notification Act and the Store Safety Act, is based on the continued spread of counterfeit goods in the U.S. Especially as U.S. e-commerce sales continue to grow and many physical sellers turn to major e-commerce platforms, the phenomenon of counterfeit goods is getting worse.

According to the data of the National Association of Manufacturers in 2019, counterfeit goods have caused $131 billion in losses to the US economy. In the latest review of "Notorious Markets" released by the Office of the United States Trade Representative, it is mentioned that many brands have noticed more counterfeit goods circulating on social media.

For brands, the harm of counterfeit goods lies first in the infringement of brand intellectual property rights and the impact on brand reputation. This is because counterfeit goods are usually made of lower-quality materials and may be potentially harmful. Even if the product itself is safe, people are worried that if its quality is too poor, it may affect the brand's image in the minds of consumers.

In addition, even if it does not rise to the level of intellectual property infringement, these copycat products are cheaper and widely circulated on TikTok, attracting a large number of consumers and seizing the brand's market share.

At the same time, the rampant counterfeit goods in the e-commerce market have also damaged the interests of offline physical retail in the United States and caused unfair competition. In physical retail, it is illegal to sell counterfeit goods, so many people, including the American Apparel and Footwear Association, have called for the same requirements to be implemented in e-commerce market sales.

E-commerce platforms are one of the largest channels for counterfeit goods, and they are also working to overcome the problem. Amazon, for example, reported that it removed 6 million items from its platform last year.

The "Store Safety Act" has received mixed reviews, and the final outcome is still uncertain

It is reported that at a hearing held by the Senate Judiciary Subcommittee on intellectual property issues last week, the "Store Safety Act" was introduced in the form of Senate Bill 2934. At present, there are voices opposing and supporting the bill, so it is not certain whether the bill can be voted on and passed.

The Store Safety Law establishes a trademark infringement liability law, and platforms will be held legally responsible if they fail to review, remove, or delist counterfeit and substandard goods. Brands that own trademarks will also be responsible for providing information about counterfeit goods to platforms to help them remove the goods.

Brands are mostly supportive of the bill. Currently, the burden of reporting dangerous, counterfeit or non-compliant products to platforms is disproportionately borne by brands or consumers, while the ShopSafe Act allows platforms to take proactive measures to ensure products are legal.

However, e-commerce platforms and many industry associations believe that the bill currently has many flaws. First, the definition is too broad and vague, including how it defines unsafe products and how it defines "e-commerce platforms". Second, the requirements for e-commerce platforms to take measures are too rigid. Finally, trademark verification is undertaken by the platform, not the brand. Industry insiders believe that more cooperation should be carried out on the brand side.

In addition, due to the fact that the implementation of the Consumer Notification Act that came into effect not long ago has not been smooth, many sellers have encountered obstacles in the identity verification process. Regarding the passage of the Shop Safety Act, some people believe that the implementation of the Consumer Notification Act should be optimized first, and then the passage of the new bill should be considered.

With leadership changes in the U.S. House of Representatives, it's unclear when legislation like the Shop Safe Act will get another push. Still, the bill has bipartisan support in the Senate.

Editor✎ Ashley/

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