The Stopping Harmful Offers on Platforms by Screening Against Fakes in E-Commerce ( SHOP SAFE ) Act, which US Senators Chris Coons and Thom Tillis reintroduced in September 2023 and could help address the growing issue of counterfeit clothing, was supported by AAFA’s director of brand protection Jennifer Hanks at the event.
” That would carry third party online platforms accountable, motivating them to implement the required adjustments.” According to Hanks, they would have to adhere to the same standards and be held accountable similarly to brick and mortar stores.
The proposed legislation would promote the use of best techniques for screening sellers and preventing repeat false product offenders on online marketing platforms.
Hanks said of e-commerce websites, adding that” close to half” of the vendors on some well-known sites are counterfeiters.” They talk about zero compassion for counterfeits- a price that’s remarkable, but we’ve been hearing that for years.” It was now period, according to her, for these websites to “put words into action.”
The United States Trade Representative ( USTR ) was contacted by AAFA in October 2023 to discuss adding a number of platforms to the lists of Review of Notorious Markets for Counterfeiting and Piracy in the following year.
As AAFA highlighted some recent instances of potentially hazardous fraudulent apparel products intended for the US market, it was also advised that consumers be educated about the potential risks of false products.
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In November 2023, US Customs and Border Protection seized a shipment of family’s nightgowns after it was determined that it violated intellectual property rights. The US Consumer Product Safety Commission reported that the products, which were imported from China, even fell short of the Flammable Fabrics Act’s flammability standards.
Hanks cautioned that because the bulk of children’s clothing is made with poor materials and lacks combustion standards, it also runs the risk of health and safety.
Last year, AAFA tested 47 fake goods, including clothing, shoes, and accessories. It discovered that 36.2 % of the items did n’t meet US safety standards. Lead, pollutants, and phthalates were among the poisonous substances found in some of the tested products at unsafe levels.
According to Hanks,” Not only did these products fall short of US security standards, but they may have even made consumers extremely ill.”
It was also obvious how serious the problem was as website sales have grown in popularity since the crisis. According to Hanks, this is harming the US market.
In order to make sure that the clothing, shoes, and accessories purchased and worn by British families are not only fashionable but also reasonably priced, responsibly and effectively sourced and healthy for consumers, reputable brands invest millions to create, train and inspect supply chains, according to Hanks. Without a doubt, counterfeits seriously hurt development and our business.
According to the National Association of Manufacturers, counterfeit goods cost the US market$ 131 billion and 325,000 work in 2019. It cited the fall of e-commerce as a contributing factor to the rising demand for these false goods.
The US Attorney’s Office in New York announced in November 2023 that it had seized its largest-ever haul of fake goods from a storage facility in the state, including bags, clothes, shoes, and other items with an estimated retail value of$ 1.03 billion.
Additionally, after customers have made their purchases, counterfeiters frequently target them for another illegal activities, such as money laundering and crime. Consumers may be wary of these sellers, according to Hanks, because” their overall business model is based on stealing someone else’s creativity and identity.”
There is” no gold gun” for combating goods, according to USA-IT spokesperson and former energetic executive associate director of homeland security studies Alysa Erichs. She also emphasized that customers can help close the market.
Erichs cautioned, adding that beneficiaries from counterfeit products may include international criminals and even criminal organizations.” The attractive next party sellers posting knock-offs on social media are frequently directly benefiting a host of malicious actors.” She continued,” Buying and selling fake or stolen items is most definitely not a minor or victimless crime.”
Erichs continued,” It’s about making the right decision,” and he urged people not to allow” Black Friday to account the black business.”
Hanks of AAFA added that the proposed legislation would aid in eradicating the issue along with increased consumer knowledge. ” We have legislation before us that can end this cycle, alter the narrative, and ultimately deny fraudsters the ability to prey on our people,” she continued.
