Push launched against fake goods online

More than a dozen trade groups are launching a new coalition aimed at forcing ecommerce companies such as Amazon.com Inc. to take stronger measures to fight stolen or counterfeit goods sold on their platforms.

The industry associations, which represent Walmart Inc., Target Corp., and Best Buy Co. Inc. among other companies, announced Friday that they are founding The Buy Safe America Coalition to back legislation that would require digital marketplaces to verify information about third-party merchants.

The lobbying push by retailers will only add to the scrutiny facing companies such as Amazon and eBay Inc. over their role in the sales of counterfeit products from bicycles to jeans around the world.

Lawmakers, President Donald Trump and companies have all been exploring ways to curb the deluge of fake goods online.

The goal is “to continue to raise awareness about counterfeit and stolen goods,” among lawmakers in Washington and statehouses around the country, said Michael Hanson, senior executive vice president of public affairs for the Retail Leaders Industry Association, one of the coalition’s founding members. “Now, with the growth of

people buying online because of this pandemic, it seems that this is getting worse.”

In addition to the retail association, the Toy Association, American Apparel & Footwear Association, the Fashion Jewelry and Accessories Trade Association and other industry groups are also joining the coalition.

Together they are backing the Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers (INFORM) Act, which would require digital marketplaces to collect information about some thirdparty sellers such as their government ID, tax ID and bank account details.

The legislation also would direct companies to disclose to shoppers their high-volume sellers’ names, phone numbers, business addresses and emails. The bill defines high-volume sellers as firms that make 200 or more sales in a year amounting to $5,000 or more. Sens. Bill Cassidy, RLa.,

and Dick Durbin, D-Ill., introduced the bill in March. Democratic Reps. Jan Schakowksy of Illinois and Kathy Castor of Florida introduced a companion version in July.

“The retailers, many of them are fighting for their lives, and they want to have as even a playing field as possible,” Schakowsky told Bloomberg earlier this summer, referring to the impact of the coronavirus pandemic on business.

“I think equally, consumers are really hoping that they’re going to be able to get the same protections online” as they do at brick and mortar stores, she said.

An Amazon spokesperson said in a statement the company has “developed many ways for sellers to share more about their business” with their customers.