SHOP SAFE Act of 2024 Stopping Harmful Offers on Platforms by Screening Against Fakes in E-commerce Act of 2024
If passed, the bill would impose a duty on electronic commerce platforms to actively prevent the sale of counterfeit goods, particularly those that could impact health and safety. Platforms found contributing to the distribution of counterfeit products may face civil liability unless they can demonstrate that they took adequate measures to prevent such sales. This could lead to a significant shift in the operational responsibilities of e-commerce platforms, as they will need to implement robust procedures for monitoring and screening product listings.
House Bill 8684, known as the SHOP SAFE Act of 2024, seeks to amend the Trademark Act of 1946 by introducing contributory liability for electronic commerce platforms that allow third-party sellers to use counterfeit marks in connection with the sale of goods. This bill is a response to growing concerns over counterfeit products sold online and aims to enhance consumer protections by obligating e-commerce platforms to ensure that their sellers do not engage in such practices.
There is likely to be contention around the implementation of the bill, particularly regarding the definition of what measures constitute 'reasonable care' in preventing counterfeit sales. Critics may argue that the bill could impose burdensome costs and compliance requirements on smaller e-commerce platforms. Additionally, there could be concerns about the balance between consumer protection and the operational flexibility of sellers, especially small businesses that rely on such platforms for sales.