South OC Times

Washington – Congressman Darrell Issa (CA-48), Chairman of the House Judiciary Subcommittee on Courts, Intellectual Property, and the Internet, introduced the SHOP SAFE Act today to protect consumers from counterfeit goods in online marketplaces.

The SHOP SAFE Act aims to incentivize online marketplaces to enhance their detection and prevention of counterfeit goods. It proposes protecting these platforms from civil liability if they comply with anti-counterfeiting measures, such as better vetting third-party sellers and providing more information about product origins.

“For far too long and for no acceptable reason, millions of American consumers have been ripped off by purchasing fake, illegal, and unsafe counterfeit products sold on online marketplaces. How we stop it starts right here,” said Chairman Issa. “The nationwide problem of third-party sellers peddling bogus products on platforms is made worse because these sham sellers are rarely – if ever – held accountable for the damage they inflict not only to individuals but to the entire structure of consumer confidence as well. Our bipartisan legislation promotes key incentives for online platforms to engage in best practices that will screen and vet both sellers and products to ensure that consumers have the information they need when they shop online.”

Issa was joined by House Judiciary Ranking Member Jerrold Nadler (NY-12), House Judiciary Member Ben Cline (VA-06), and Subcommittee Ranking Member Hank Johnson (GA-04) in introducing the legislation.

“As American consumers increasingly turn to the internet to shop, counterfeiters have kept pace. To stop this rising trend in online sales of unsafe counterfeit products, the law must keep pace too,” said House Judiciary Ranking Member Jerrold Nadler. “I am proud to reintroduce the bipartisan SHOP SAFE Act, which will protect consumers by making platforms appropriately responsible for harmful counterfeits sold through their websites by others and encouraging them to go on the offensive in the fight against fakes.”

"As online retailers continue to grow and increasingly work with unverified third-party vendors, Congress must take steps to protect American consumers from both physical and financial harm, as well as protect the integrity and authenticity of the products," said Rep. Cline. "The SHOP SAFE Act will help ensure consumers get the product they paid for by curbing the flow of counterfeit goods, many of which come from China. It would also aid in dismantling revenue sources for terror organizations who rely in-part on the sale of fake goods to fund their operations."

“Combatting counterfeits online is of critical importance,” said Subcommittee Ranking Member Hank Johnson. “We are no longer in the era of fake watches and handbags being sold out of car trunks. As consumers have moved online, counterfeiters have embraced the Internet too. But shopping on an online marketplace should come with the same customer trust and confidence as a brick-and-mortar store – today it does not. The SHOP SAFE Act is a good first step to countering this troubling trend and protecting American consumers.”

The bill has received endorsements from various organizations including ABA Industry Inc., adidas America Inc., Alliance for Automotive Innovation (AAI), Alliance for Safe Online Pharmacies (ASOP Global), American Apparel & Footwear Association, Association of Home Appliance Manufacturers (AHAM), Authentix Inc., Automotive Anti-Counterfeiting Council (A2C2), Communications Cable & Connectivity Association (CCCA), Consumer Healthcare Products Association (CHPA), Council 4 Innovation Promotion (C4IP), Footwear Distributors & Retailers of America (FDRA), Halloween & Costume Association (HCA), International Anti-Counterfeiting Coalition (IACC), MEMA - The Vehicle Suppliers Association, National Association of Manufacturers, National Systems Contractors Association (NSCA), Personal Care Products Council (PCPC), Sentinel Connector Systems, Sports & Fitness Industry Association (SFIA), The Partnership for Safe Medicines, The Toy Association, TIC Council, Transnational Alliance to Combat Illicit Trade (TRACIT) and Vinyl Institute.

“All toys sold in the U.S. must comply with strict standards and undergo extensive testing to ensure they are safe. Though some efforts have been made, counterfeits continue to pop up on many online marketplaces at an alarming rate. These unsafe items are putting millions of families at risk and undermine all of the hard work that legitimate companies put in to make their products safe,” said Greg Ahearn, President & CEO of The Toy Association. “The Shop Safe legislation can help ensure that all American consumers are protected while shopping online.”

The bill text can be found here.