Shop Safe disproportionally harms women and gender minorities who rely on online marketplaces to sell their goods.

Almost half of consumers’ online shopping happened on digital marketplaces like eBay and Etsy in 2021, with more than 95% of shoppers using an online marketplace in the last year. And marketplaces have been a boon to sellers too; more than 2.5 million artisans sell their products through Etsy, more than 80% of whom are women.

Given the importance of online marketplaces to the economy, it seems a strange time to make it harder to be an online entrepreneur. But what’s what the SHOP SAFE Act — which was recently attached to a broader bill before the U.S. House — would do.

At the moment, it’s relatively easy for someone to open a shop and begin to sell items on Etsy or eBay. Although there are items prohibited from being listed (like alcohol, drugs, animal products, or dangerous items), sellers generally face minimal red tape when opening a shop or selling items.

SHOP SAFE Act Hurts Small Sellers Who Use Online Marketplaces

But in an effort to please big brand owners like Nike, Louis Vuitton, and Prada, however, the SHOP SAFE Act would make it harder for artisans and other business owners to conduct business. It would require that they:

Have a registered US agent or verified US address for service;

Verify their identity, place of business and contact information with reliable documentation; and

Verify the authenticity of their listed goods.

In order to gain ‘safe harbor’ from trademark infringement claims, online marketplaces would be obliged to display the identity and contact information of third party sellers and information on the country of origin and manufacture of goods; require the use of images that accurately depict the goods being sold; proactively screen goods offered by third party sellers before displaying to customers for counterfeit marks and provide electronic means of reporting suspected counterfeit goods.

The net effect of these new requirements would be to make business harder for the small sellers using these marketplaces who make a living.