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December 16, 2021

US apparel brands urge swift ratification of law on fakes

US clothing and footwear brands are urging the swift ratification of legislation that stops the sale of counterfeit goods online.

By Hannah Abdulla

The American Apparel and Footwear Association (AAFA) and Footwear Retailers and Distributors of America (FDRA) are among 12 trade organisations calling on Congress for the swift implementation of legislation – specifically the Shop Safe Act and the Inform Consumers Act – that establishes better rules for the secure and safe conduct of e-commerce in the United States to protect consumers from fakes and stolen goods sold via online marketplaces.

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“Each bill introduces unique improvements in e-commerce that will immediately reduce unsafe and fraudulent consumer goods from being available and sold online to unsuspecting customers, who are unknowingly lining the pockets of unscrupulous sellers and organized criminals, and siphoning revenues from legitimate companies, workers and taxes that could go towards essential government and community services,” the group said in a letter to Congress.

“These bills are critical in their provision of new legal tools for online marketplaces, brand owners, and consumers to stop third-party sellers from offering counterfeit and stolen goods via e-commerce platforms. Specifically, The Inform Consumers Act requires new vetting, disclosure, and takedown responsibilities by e-commerce marketplaces for all consumer goods and establishes a regulatory mechanism administered and enforced by the Federal Trade Commission and at the state level by state attorney generals. Shop Safe establishes a strong incentive for online marketplaces to verify and vet third-party sellers. Importantly, it also requires platforms to enforce effective policies to expeditiously remove counterfeit listings that implicate health and safety and to terminate the accounts of repeat offenders.

“Our members work closely with e-commerce platforms to protect our customers, but the time has come to standardise the rules across all online marketplaces to make customers just as safe online as when they purchase goods from brick and mortar stores. Congressional passage of each of these bills – Shop Safe and Inform Consumers – would accomplish this goal.

“During Covid, e-commerce has exploded and, along with it, counterfeits, putting countless millions of hardworking American families in harm’s way, empowering organized crime, and stealing American jobs. Therefore, we urge that the bills be considered and passed this year.”

The Inform Act was introduced in October in an attempt to increase online marketplace transparency and accountability to combat the rapidly growing problem of fakes and stolen goods sold through these channels.

Fake products now account for 3.3% of global trade, which is negatively impacting economies, brands, and individuals, according to figures published by testing, inspection and certification company SGS, with clothing and footwear the most heavily bootlegged industry.

Counterfeiting and piracy cost the global economy around US$4.2 trillion a year, according to the data.

 

 

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Free Report
img

How can brands navigate the post-COVID-19 Apparel market?

In 2021, the Global Apparel market remained at 3% below pre-pandemic levels, with Europe and LATAM lagging behind. If they want to see full recovery, brands must look ahead. GlobalData is therefore offering this free report, Future of the Apparel Market Post Pandemic, to assist companies in adapting to the future market. This report explores the following topics:
  • Latest forecasts for the online apparel market out to 2025
  • How different regions and categories will perform, including which regions are lagging behind and which are performing at pre-pandemic levels
  • Which categories within the Apparel market are displaying resilience
  • Which brands are driving online spending
  • Impact of inflation on the Global Apparel market
  • What the biggest trends are that apparel businesses must adopt to succeed
Read our report on the Future of the Apparel Market Post Pandemic to gain valuable insights on how to best position your brand in a post-COVID-19 world.
by GlobalData
Enter your details here to receive your free Report.

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