E-commerce Companies Could Soon Be Liable for Counterfeits Sold on Their Platforms

One of the worst feelings is realizing something you purchased is not authentic and a counterfeit item.

Many e-commerce sites such as eBay and Amazon have sellers who sell knock off merchandise to unsuspecting buyers. Now there’s a new bill however that could make these companies responsible for the fake items that are being sold on their platforms.

On Monday a bipartisan bill called The Shop Safe Act of 2020, was introduced that outlines steps that e-commerce platforms must take to prevent the sale of counterfeits third-party sellers sold on their platforms. The bill is being co-sponsored by four House members.

According to CNBC who obtainted text from the bill, if these companies fail to take these steps they can be held liable for the sale of counterfeits according to the bill.

“Consumer lives are at risk because of dangerous counterfeit products that are flooding the online marketplace,” Rep. Doug Collins (R-Ga.) said in a statement. “Congress must create accountability to prevent these hazardous items from infiltrating the homes of millions of Americans.”

The OECD has found that counterfeit goods accounted for 3.3% of global trade in 2016. “Counterfeiters have followed consumers, and it is clear more must be done to combat the rising trend in online sales of counterfeit products,” said Rep. Jerry Nadler (D-N.Y.) in a statement.

According to Josh Gerben, a trademark lawyer, The Shop Safe Act of 2020 would hold e-commerce companies more accountable for the goods sold on their sites.

“Quite frankly it is about time that Congress did something about it because the online marketplaces that exist today
have not put consumer safety first,” Gerben said to CNBC.

“We are actively fighting bad actors and protecting our store and we will continue to work with brands, government officials, and law enforcement,” an Amazon spokesperson said in response to CNBC.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.