Brands will abuse takedown notices to drive competitors out of business

For example, SHOP SAFE would not only require “electronic commerce platforms” to place burdensome new requirements on sellers, but it would also force covered businesses to permanently ban sellers who have had three counterfeit notices in one year with no clear mechanism for reinstatement. This is particularly problematic because many platforms have already seen that brands are abusing notice and takedown regimes to report products that are perfectly legitimate and are often sourced directly from the brands via outlets or clearance sales.

Under SHOP SAFE, there is no recourse for sellers or platforms who fall victim to fraudulent or abusive rights owners. As currently structured, SHOP SAFE will put legitimate sellers at risk of losing their livelihood. Once blacklisted with three reports there are no mechanisms for small sellers to remove themselves from SHOP SAFE’s reporting requirements — or for them to be reinstated given inflexible provisions — which are ironically more extensive for small sellers than for large sellers.

SHOPSAFE also gives brands more power to erroneously report listings as a means to control distribution channels, which will eliminate competition and lead to fewer choices and higher prices for consumers.