SHOP SAFE is too extreme – e-commerce platforms lobby against it.
Lima ‘2021 [Cristiano; November 3; Tech policy reporter writing the Technology 202 Newsletter; The Washington Post, “A ‘watered down’ counterfeit crackdown won the support of Amazon, other sites”, https://www.washingtonpost.com/politics/2021/11/03/watered-down-counterfeit-crackdown-won-support-amazon-other-sites/]
E-commerce companies including Amazon are rallying around bipartisan legislation aimed at cracking down on counterfeits sold online, marking a shift in negotiations after months of sparring between lawmakers and the tech industry over attempts to regulate the issue.
But the platforms are notably endorsing a more modest proposal while resisting efforts seen as more threatening that could open them up to greater legal liability or make complying with new rules more challenging.
Amazon, Etsy and eBay in recent weeks have all come out in favor of the House version of the INFORM Consumers Act, legislation that would require digital marketplaces to verify details about third-party vendors they work with and disclose some of this information to consumers. (Jeff Bezos, who founded Amazon, owns The Washington Post.)
Unspoken in those announcements is the fact that the companies have not endorsed the Senate version of the bill, which would require platforms to verify information about a larger pool of vendors — thus making it more difficult for companies to comply with the measure. The original Senate version also did not expressly preempt state laws, which the industry has pushed for.
Several of the companies, meanwhile, are pushing back against a separate bill known as the SHOP SAFE Act that could open digital marketplaces up to lawsuits over the sale of counterfeit goods on their sites if they don’t meet a set of “best practices” to combat them. Companies have argued the proposal could have unintended consequences on e-commerce, while its backers have argued it is a crucial step to hold platforms accountable for counterfeit sales.
The debate is coming to a head after efforts to set new rules protecting consumers against counterfeit goods and services bought online languished for years.
The House Judiciary Committee recently advanced the SHOP SAFE Act, and lawmakers in the House and Senate held hearings in recent weeks discussing the INFORM Consumers Act. The flurry of activity, coupled with the recent industry endorsements, could signal lawmakers may finally have enough momentum to get some legislation passed after past failed attempts.
Tech companies, including Amazon, have lobbied aggressively against passage of counterfeit legislation in the past, notably a June attempt to include the INFORM Consumers Act into a major package aimed at boosting U.S. competitiveness with China.
But e-commerce companies came around on the House version of the bill after lawmakers addressed concerns that the original bill’s more onerous requirements would hurt small businesses that might have a harder time complying with its mandates.
“We’re thankful for the progress that’s been made on the House version of the INFORM Act and look forward to supporting its passage,” Amazon Vice President of Public Policy Brian Huseman wrote in a blog post last Wednesday, echoing similar remarks by Etsy and eBay.
But the months-long lobbying campaign targeting the bills hasn’t gone unnoticed.