Counterfeiters find a way around vetting

Some believe that holding marketplaces liable for harm stemming from listings on their sites is appropriate because the marketplaces are the "guardians" of their sites and are in the best position to verify and police sellers and listings.138 One of the ways that marketplaces can guard their platform against bad actors is to thoroughly verify seller identity, location, and address using more than a governmental ID.139 Parties on both sides show concern with seller identification requirements, noting that it is [*231] still relatively easy to use false or stolen identification.140 Moreover, the global participation model used by marketplaces means that platforms often have no way to physically inspect identification documents to verify legitimacy.141 Yet, despite the imperfections of current vetting processes, requiring marketplaces to increase their scrutiny of seller-provided documentation is seen by many as a step in the right direction.142 Some small, individual business owners working out of their homes fear that requiring disclosure of seller names and addresses will endanger their personal lives.143 Acknowledging privacy and personal safety concerns, the INFORM Act allows sellers who do not have a non-residential business address to display only their country or state of residence.144 Personal contact information collected for the purposes of verifying seller identification, including residential addresses, is not to be displayed to consumers on the seller's listing and is required to be protected in a secured data bank.145 Legitimate business operators support consumer disclosure requirements and the obligation to provide a business address, claiming that more transparency will deter bad actors who hide behind anonymity.146 Information disclosure can only go so far to deter sellers of counterfeit goods. Even when online marketplaces verify seller identity and audit the products before they are offered for sale on the platform, sellers still have the opportunity to deal in fake goods after the initial marketplace entry requirements. It is [*232] possible for a seller to send authentic products to the marketplace to pass audits and inspections, only to turn around and sell counterfeit products directly to the consumer.147 To ensure that product standards and contractual agreements are met, marketplaces must continually audit sellers and their products.148