Steve Lamar, president and CEO of AAFA, has urged US Congress to scrutinise major e-commerce and social media platforms when they testify before lawmakers this week.
Lamar accused e-commerce and social media platforms of creating networks of misinformation and consumer deception and demanded these companies explain why they struggle to curb the promotion and sale of counterfeit goods on their sites.
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Furthermore, Lamar called on Congress to expedite the passage of the “much-needed” Stopping Harmful Offers on Platforms by Screening Against Fakes in E-Commerce (Shop Safe Act), which was reintroduced by US Senators Chris Coons and Thom Tillis in September 2023.
AAFA applauded the USTR’s annual report, which identifies platforms profiting from the digital devalue chain of counterfeits, and its inclusion of DHGate and Shopee in its list of Notorious Markets, but expressed concern that three major markets nominated by AAFA—Meta, Alibaba Cloud, and Lazada—were not listed.
AAFA says its members are “deeply concerned” about the range of risk to consumers posed by counterfeit products, including threats to consumer health and safety, as well as financial risks.
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“These same members make significant investments to combat the promotion and sale of counterfeit goods, which tarnish brand reputation and harm consumers and workers, while the platforms that profit off these counterfeits are shielded from liability,” said Lamar.
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By GlobalDataThe USTR report highlighted the health and safety risks associated with counterfeit goods, referencing AAFA’s March 2022 laboratory study. The study revealed alarming levels of dangerous chemicals in counterfeit products, with 36.2% of tested items failing to comply with US product safety standards. Arsenic, cadmium, phthalates, lead, and more were found in significant amounts, posing serious health risks.
AAFA’s director of brand protection Jennifer Hanks had previously voiced her support for the Shop Safe Act ahead of last year’s Black Friday sales event along with representatives from US law enforcement at an Inside Sources event.
In October 2023, AAFA submitted comments to the USTR, detailing the harm consumers face from the digital devalue chain of counterfeits. The association nominated five platforms for inclusion in the Notorious Markets list, providing insights into the resources brands must allocate to police marketplaces and combat the counterfeit trade effectively.
