Compliance costs cause market consolidation
Robin Gross, 2022 – founder and executive director of IP Justice, an international civil liberties organization that promotes the public interest and human rights in technology laws and policies “SHOP SAFE: Ill-Considered Counterfeiting Bill Misses Mark” IP Justice blog, 2/23, https://www.ipjustice.org/digital-rights/shop-safe-ill-considered-counterfeiting-bill-misses-target/
What is worse, is the cost for e-Commerce sites to implement these new identification and “technological measures” would likely fall on the sellers. SHOP SAFE states that the cost will not fall on trademark owners, so that only leaves the sellers and the online marketplaces. These costs may be manageable for some sellers, but not for all, essentially shutting some out of the market. In a 2021 Report from JungleScout that surveyed Amazon sellers, over 20% of sellers derive their income solely from selling on Amazon. New sellers, within their first year or two of business, are making an average of about $42,000.00 a year in profits. SHOP SAFE compliance and/or takedowns would render some of those 20% without an income at a time where Americans are struggling financially.