In a memorandum posted on October 13th, United States President, Donald Trump, requested the Department of Homeland Security (DHS) and the Attorney General to develop a proposal for bigger fines and new legislation focused on ending the import of counterfeit goods through e-commerce platforms. The White House notice detailed the expectation that U.S. Customs and Border Protection (CBP) would seize counterfeit goods which are imported into the United States.
Furthermore, U.S. President Donald Trump has asked that CBP impose the “maximum fines and civil penalties permitted by law on any e-commerce platform that directs, assists with, or is in any way concerned in the importation into the United States of counterfeit goods.”
This request comes just seven months after the introduction of both the SHOP SAFE Act and the INFORM Act, which are both currently pending.
Stopping Harmful Offers on Platforms by Screening Against Fakes in E-Commerce (SHOP SAFE Act)
- would incentivize e-commerce platforms to implement better vetting practices,
- punish repeat offenders,
- ensure that the information consumers have when shopping online is accurate.
Integrity, Notification and Fairness in Online Retail Marketplace (INFORM Act)
- would require e-commerce platforms to verify their high-volume, third-part sellers at least one a year.
The legislation proposal to promote the President’s new policy objectives is requested within the next 120 days. This legislation would differ from the bills proposed earlier this year with the introduction of maximum CBP fines imposed on e-commerce businesses. The President has also asked that the executive branch’s authority to address and deter counterfeit trafficking be strengthened.
“E-commerce platforms serve as key contributors to counterfeit trafficking by acting as intermediaries and providing marketplaces that match up buyers and sellers,” President Donald Trump said in the memorandum.
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