Trump administration cracks down on counterfeits
President Trump has shifted liability for counterfeits from third parties to platforms, and that’s disastrous news for Amazon
Law enforcement officials will immediately start to identify cases where counterfeit goods are being sold online, according to the report, and will “pursue civil fines and other penalties against these entities”, reports CNBC. The report calls for new legislation to allow “the government to seek injunctive relief against third-party marketplaces and other intermediaries dealing in counterfeit merchandise.”
The new policy shifts the burden of responsibility to Amazon. Now warehouses and fulfillment centers, most notably Amazon, will be legally and financially liable. Jeff Bezos’ company will have to bear more of the costs of policing for counterfeits on its platform, writes CNN.
The Trump administration will now require eCommerce platforms like Amazon to turn over vast amounts of third-party vendor data for additional scrutiny.
The initiative comes after President Donald Trump signed a “phase one” trade deal with China that requires both countries to “combat the prevalence of counterfeit or pirated goods” by taking “effective action” when platforms fail to prevent intellectual property infringement.
E-commerce platforms are strongly recommended to make their terms of service very clear about prohibiting the sale of counterfeit goods, enhance third-party vetting processes by requiring various forms of identification, simplify the process for rights holders, such as brands, to submit complaints of counterfeits and having an efficient process to take down a listing that is found to be counterfeit.
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