A bipartisan group of lawmakers unveiled legislation Monday that would maintain e-commerce corporations like Amazon or eBay liable for counterfeit products and solutions offered on their platforms as U.S corporations struggle to fight the sale of fake products on the net.
The Store Safe Act of 2020, co-sponsored by 4 Home users, outlines a series of measures that e-commerce platforms will have to consider to avoid the sale of knockoffs by third-bash sellers on their platforms. E-commerce businesses that fall short to acquire these methods can be held liable for the sale of counterfeits, a move that would shift burden onto the world-wide-web marketplaces, in accordance to a textual content of the bill acquired by CNBC.
“Consumer life are at danger simply because of risky counterfeit products that are flooding the on the web market,” Rep. Doug Collins (R-Ga.) mentioned in a assertion. “Congress ought to produce accountability to protect against these harmful items from infiltrating the homes of hundreds of thousands of Americans.”
The rise of e-commerce has contributed to a growth in shipments of counterfeit goods sold on line. Pretend merchandise accounted for 3.3% of global trade in 2016, in accordance to the OECD. The Division of Homeland Safety (DHS) documented seizures of counterfeit merchandise at U.S. borders have improved 10-fold over the past two many years.
In January, the DHS unveiled a report saying e-commerce corporations will need to do additional to fight fake products on their sites in order to shield American people and organizations.
“Counterfeiters have followed customers, and it is crystal clear additional need to be finished to battle the growing pattern in on the web gross sales of counterfeit products,” mentioned Rep. Jerry Nadler (D-N.Y.) in a statement.
Court decisions have formerly located e-commerce companies like Amazon are not liable for counterfeits bought by 3rd-functions on their platforms. In Amazon’s case, additional than half of gross goods profits appear from 3rd bash-sellers.
Josh Gerben, a trademark law firm, said this monthly bill would hold e-commerce businesses extra accountable for the goods sold on their web pages.
“Fairly frankly it is about time that Congress did anything about it since the on line marketplaces that exist these days have not place shopper safety 1st,” he explained to CNBC.
The Household Strength and Commerce Committee is established to keep a hearing Wednesday early morning about the sale of counterfeit items on-line. Witnesses contain executives from Amazon, eBay and Apple.