The AAFA is recommending five platforms be added to this year’s NML report including Meta and all of its platforms, Threads, Alibaba Cloud, Shopee, DHgate and Lazada.
The five platforms had not responded to Just Style’s request for comment at the time of going to press.
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The AAFA said in its letter to Daniel Lee, assistant US Trade Representative (USTR) for Innovation and Intellectual Property: “Brand protection is a core advocacy pillar for AAFA. Through AAFA’s Brand Protection Council (BPC), AAFA advocates for the protection of intellectual property (IP) rights; builds awareness of the dangers of counterfeits to businesses, consumers, workers, and the environment.”
Citing data from the National Association of Manufacturers, the letter claimed that counterfeit products sucked $131bn (about $400 per person) from the US economy in 2019 and destroyed more than 300,000 US jobs and wiped away nearly $10bn in federal, state and local tax revenues.
The letter states: “AAFA members invest millions to build, train, and inspect supply chains to ensure that the clothes, shoes, and accessories bought and worn by American families are not only fashionable and affordable but are also ethically and sustainably sourced and made, and safe for consumers.
“Counterfeiters have a different view of the world. Their entire business model is based on stealing somebody else’s innovation and identity, so it is with little remorse that they exploit workers, engage in wage theft, employ shoddy factories, dump hazardous waste into rivers and lakes, and use dangerous chemicals. When they lure folks into buying their fake products, they often dabble in more thievery, exposing consumers to financial scams. The fact that authentic brands invest so much in social and ethical effort only widens the profit margins of counterfeiters because they are often able to score a sale, without paying for any of the compliance while duping customers into believing has occurred.
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By GlobalData“What happens to the profits of these ill-gotten gains? They become the seed capital for organised crime, terrorist activities, and yet more counterfeit activity.
“All online platforms, regardless of where they are headquartered — need the same accountability as the corner store to stop the promotion and sale of counterfeits. The United States should be leading this effort.”
In April AAFA expressed its gratitude to USTR for its annual Special 301 Review report which identifies foreign countries that fail to provide adequate and effective protection of intellectual property rights.
