Senators Coons, Tillis introduce SHOP SAFE Act to Address Issue of Harmful Counterfeit Products Sold Online
U.S. Senators Chris Coons and Thom Tillis of North Carolina introduced the SHOP SAFE Act to protect those of you who shop online from harmful counterfeit products that are sold. As more American consumers opt to shop online, they are increasingly vulnerable to the rising number of harmful counterfeit goods sold on e-commerce platforms — toys, car seats, electronics, bicycle helmets, apparel and footwear, car parts, and more. The SHOP SAFE Act would reduce the availability of harmful counterfeit products online by providing an incentive for platforms to engage in best practices for vetting sellers and goods and stopping repeat counterfeiter sellers.
Additional Information from the Office of Senator Chris Coons
WASHINGTON – U.S. Senators Chris Coons (D-Del.) and Thom Tillis (R-N.C.) introduced the Stopping Harmful Offers on Platforms by Screening Against Fakes in E-Commerce (SHOP SAFE) Act today to protect consumers from harmful counterfeit products that are sold online.
Last year, Americans spent more than $1 trillion on e-commerce for the first time ever. As more American consumers opt to shop online, they are increasingly vulnerable to the rising number of harmful counterfeit goods sold on e-commerce platforms — toys, car seats, electronics, bicycle helmets, apparel and footwear, car parts, and more. The SHOP SAFE Act would reduce the availability of harmful counterfeit products online by incentivizing platforms to engage in best practices for vetting sellers and goods and stopping repeat counterfeiter sellers.
“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. “These counterfeit goods pose health and safety risks, damage the reputations of legitimate brands, and line the pockets of organized crime. The bipartisan SHOP SAFE Act is an important step that will protect consumers and encourage greater transparency and accountability.”
“The number of Americans using e-commerce platforms to purchase basic and necessary goods is growing and so is the number of counterfeit goods being sold by third-party sellers on these platforms,” said Senator Tillis. “With Americans continuing to rely on online shopping, it’s crucial that we do all we can to protect consumers from dangerous counterfeit sales which are often coming from China. I look forward to working with my colleagues to effectively reduce online counterfeit sales without unnecessarily disrupting legitimate business and e-commerce platforms.”
The SHOP SAFE Act will:
- Establish trademark infringement liability for e-commerce platforms when a third party sells a counterfeit product that poses a risk to consumer health or safety and that platform has not implemented certain best practices;
- Require brand owners to provide platforms with advanced notice of their mark(s) and a point of contact so that the platforms can implement proactive measures to prevent sales of counterfeit goods; and
- Provide a safe harbor from liability for platforms that vet sellers to ensure their legitimacy, remove counterfeit listings, and remove sellers who repeatedly sell counterfeits.
As Chair of the Senate Judiciary Committee’s Intellectual Property Subcommittee, Senator Coons has long advocated for protecting U.S. intellectual property rights and the American consumer from counterfeit goods. Senator Coons held a hearing on oversight of the U.S. Patent and Trademark Office (USPTO) in July to ensure U.S. intellectual property laws are being enforced predictably and effectively by, among other things, exploring the actions the USPTO is taking to combat sales of counterfeit goods.
In July, Senators Coons and Chuck Grassley (R-Iowa) introduced a bipartisan resolution recognizing the month of August as National Anti-Counterfeiting and Consumer Education and Awareness Month and highlighting the importance of the roles of trademarks in the American economy and in protecting consumer safety.
The SHOP SAFE Act is endorsed by the American Apparel & Footwear Association, the Alliance for Automotive Innovation, the Toy Association, the National Association of Manufacturers, and the Footwear Distributors and Retailers of America.
“We appreciate the leadership and unwavering commitment of U.S. Senators Chris Coons and Thom Tillis as we work to stop counterfeiters from evading rules of product safety, social responsibility, sustainability, and other measures of commitment to consumer well-being. With this bill, online platforms must meet the same requirements, and face the same accountability, as brick-and-mortar retailers when it comes to stopping the sale of counterfeit or illicit products that alarmingly are landing on the doorsteps of Americans all day, every day,” said Steve Lamar, President and CEO of the American Apparel & Footwear Association.
“Dangerous counterfeit automotive components endanger public health and safety. The SHOP SAFE Act will help prevent counterfeit auto parts from entering the stream of commerce and reaching the hands of unsuspecting consumers,” said Hilary Cain, Vice President of Technology, Innovation, and Mobility Policy at the Alliance for Automotive Innovation.
“We commend U.S. Senators Chris Coons and Thom Tillis for their leadership in addressing the pressing need to safeguard consumers, particularly children, from illicit products that are infiltrating online platforms,” said Steve Pasierb, President and CEO of The Toy Association. “This critical legislation holds online marketplaces accountable for the products they offer for sale and will help prevent bad actors from selling products that do not comply with the rigorous safety standards upheld by the toy industry. Creating a safer, more trustworthy online shopping environment ultimately protects children and families from potentially dangerous counterfeits sold online.”
“The explosive growth in e-commerce has caused a surge in the sale of counterfeits, exposing consumers to health and safety risks. Manufacturers commend Senators Coons and Tillis for introducing the SHOP SAFE Act, which lays out reasonable and implementable steps to keep dangerous products off platforms and protects American citizens, workers, and businesses from bad actors,” said Charles Crain, Vice President of Domestic Policy, National Association of Manufacturers.
“Counterfeit footwear puts U.S. consumers at risk and threatens jobs in our industry. As these illicit goods become more sophisticated, it can be impossible for customers to distinguish a legitimate product from a knockoff. The SHOP SAFE Act is a key step in the fight against counterfeits. It will incentivize e-commerce platforms to implement best practices to prevent bad actors from selling counterfeit goods on their sites. We applaud these leaders in Congress for working together to protect American individuals and families,” said Matt Priest, President and CEO, Footwear Distributors and Retailers of America.
The bill text is available here. A one-pager is available here.
