Letter to Committee on Energy and Commerce regarding Counterfeit Products

The Honorable Maria Cantwell
Chairwoman
Committee on Commerce, Science, and Transportation
U.S. Senate
Washington, DC 20510

The Honorable Roger Wicker
Ranking Member
Committee on Commerce, Science, and Transportation
U.S. Senate
Washington, DC 20510

The Honorable Richard Durbin
Chairman
Committee on the Judiciary
U.S. Senate
Washington, DC 20510

The Honorable Chuck Grassley
Ranking Member
Committee on the Judiciary
U.S. Senate
Washington, DC 20510

The Honorable Frank Pallone
Chairman
Committee on Energy and Commerce
U.S. House of Representatives
Washington, DC 20515

The Honorable Cathy McMorris Rodgers
Ranking Member
Committee on Energy and Commerce
U.S. House of Representatives
Washington, DC 20515

The Honorable Jerry Nadler
Chairman
Committee on the Judiciary
U.S. House of Representatives
Washington, DC 20515

The Honorable Jim Jordan
Ranking Member
Committee on the Judiciary
U.S. House of Representatives
Washington, DC 20515

Dear Chairwoman Cantwell, Ranking Member Wicker, Chairman Durbin, Ranking Member Grassley, Chairman Pallone, Ranking Member McMorris Rodgers, Chairman Nadler and Ranking Member Jordan:

We the undersigned, representing thousands of businesses, write today in appreciation of your bipartisan efforts to address the growing tide of fake and counterfeit products which are impacting everyday Americans. We urge you to support the inclusion in any final China competition legislative package two pieces of legislation needed to fight this problem – the SHOP SAFE Act (S. 1843 / H.R. 5374) and the INFORM Consumers Act (S. 936 / H.R. 5502).

Counterfeiting has harmed manufacturers, workers and consumers for decades, but the problem has gotten significantly worse with the explosive growth of e-commerce. Counterfeiters and other bad actors have taken advantage of these platforms to expand their reach, as was clearly seen during the COVID-19 pandemic, when bad actors abused online platforms to peddle fake tests, dangerous vaccines and ineffective personal protective equipment. Small- and medium-sized business are particularly at risk as counterfeiters target their core products. Broadly, counterfeit products harm American consumers, support criminal activity, threaten manufacturing investment, and put American jobs at risk: industry estimates show fake and counterfeiting cost the U.S. economy nearly $131 billion and more than 325,000 jobs in 2019 alone.1

Fighting this growing epidemic requires strong, practical solutions that curb the availability of counterfeit goods available on online platforms and provide better information to consumers and businesses to protect themselves. Bipartisan groups of lawmakers in both chambers of Congress have spent years crafting two pieces of legislation which provide important new tools in the fight against counterfeiting, the SHOP SAFE Act and the INFORM Consumers Act. These pieces of legislation were included in the America COMPETES Act of 2022 passed by the House of Representatives on Feb. 4, 2022, and we respectfully urge you to include these provisions in any final legislative package.

• The SHOP SAFE Act would hold e-commerce platforms liable for counterfeit products sold on their platforms—just like their brick-and-mortar retail counterparts—unless they take a specific set of common-sense, preventative measures. Specific provisions include requirements for platforms to quickly take down bad listings and terminate repeat offenders, use technology to screen for counterfeit goods and ensure that sellers have a U.S. address or agent to ensure they cannot avoid litigation.

• The INFORM Consumers Act would require online marketplaces to verify annually the identity of high-volume sellers, collecting basic identification information and providing it to consumers who have purchased products via the platform. Additionally, the bill establishes a regulatory mechanism enforced by the Federal Trade Commission and state attorneys general.

These two pieces of legislation work in tandem to seek out bad actors and protect Americans from harmful and dangerous goods, with new tools which allow all parties, including platforms, businesses and consumers, to fight against counterfeiters. Both pieces of legislation have been crafted on a bipartisan and bicameral basis and reflect input from a wide range of stakeholders. These proposals have been the subject of extensive Congressional consideration and extensive discussions between committee leadership and bill sponsors, with a majority of both parties voting in strong favor of both bills in committee markups in the House.

The threats posed by fake, dangerous and counterfeit goods underscore the need for swift action. We look forward to working with you to advance these important provisions, as well as to pursue additional legislative actions that can effectively tackle the growing tide of online counterfeit products.

1 National Association of Manufacturers, “Countering Counterfeits: The Real Threat of Fake Products,” July 2020 available at https://www.nam.org/wp-content/uploads/2020/07/CounteringCounterfeits.vF_.pdf.

Read the full letter submitted by CropLife America and more than 50 other signatories.