A small seller exemption solves the case but avoids the DA – it prevents brands from litigating to control distribution
Matt Schruers, 2023 - President Computer & Communications Industry Association. Responses to questions from Senator Tillis. “Back to School with the SHOP SAFE Act: Protecting Our Families from Unsafe Online Counterfeits” Senate Hearing, 10/3, https://www.judiciary.senate.gov/imo/media/doc/2023-10-03_-_qfr_responses_-_schruers.pdf //DH
Congress also must ensure that sellers that are operating in good faith are not overly burdened by new regulations. Companies that only have a few employees could be put out of business by improper demands by brand owners whereby legitimate products on sale are reported by brand owners who seek to control the distribution channels for their goods. As currently written, SHOP SAFE would empower brands to erroneously report listings that would eliminate competition and lead to fewer choices and higher prices for consumers.
We also oppose the three-strikes policy that would require covered platforms to permanently ban sellers as especially small businesses should be given opportunities to cure and brand owners should be punished for bad-faith takedown requests. Instead SHOP SAFE should include a small seller exception for casual sellers and microbusinesses and the thresholds in SHOP SAFE should align with thresholds in INFORM for consistency.