A coalition of industry groups in the US have called on Congress to include the Shop Safe Act and the Inform Consumers Act in any final competitiveness legislation. They urged Congress to ensure that the final competitiveness legislative package includes critical provisions from the House-passed America Competes Act to protect the health and safety of American consumers by curbing the proliferation of counterfeit products promoted and sold online.
The Shop Safe Act and the Inform Consumers Act lay out reasonable, implementable steps to keep dangerous products off platforms, developed through in-depth consultation among all stakeholders with changes to scope and applicability to address marketplace concerns.
The context: The call, issued on the occasion of World IP Day on Tuesday, comes in the wake of a March study released by the American Apparel and Footwear Association (AAFA) that found counterfeit apparel, footwear and accessories have been posing a threat to the health and safety of American consumers. The study showed that over one-third of the counterfeit products testing contained dangerous levels of arsenic, cadmium, phthalates, lead, and more. Even small amounts of these chemicals can pose significant health risks.
Report after report: The statement said: "As we look to ensure the United States leads the world in competitiveness, report after report continues to flag where numerous counterfeits and counterfeiters are sourced. We must lead by example and abide by the same measures we ask of others in international marketplaces and of our global trading partners. Where we call on other countries to do more related to counterfeits, the United States should also be a leader to eradicate illicit and counterfeit items."
Europe report: In March, a joint report, ‘Dangerous Fakes. Trade in counterfeit goods that pose health, safety and environmental risks’, by the European Union Intellectual Property Office (EUIPO) and the Organisation for Economic Cooperation and Development (OECD) found that counterfeits not only cause economic damage and job losses, but they also create serious risks for consumers. These include health risks (e.g. fake pharmaceuticals or food products), safety risks (e.g. fake automotive spare parts or batteries) and environmental risks (e.g. fake chemicals or pesticides).
- Perfumes, cosmetics, clothing, toys, automotive spare parts and pharmaceuticals, were among the most common dangerous fakes;
- Online sales represented 60% of seizures of dangerous products destined to the EU; and,
- China and Hong Kong accounted for 75% of dangerous fakes seized.
Congress report: A briefing paper by the Congressional Research Service in February pointed out: “The growing importance of emerging markets has introduced new views on IPR and challenges to enforcement. New technologies present distinct challenges to combating counterfeiting and piracy. Most recently, the Coronavirus Disease 2019 (COVID-19) pandemic is renewing debates about the role of IPR protections in providing global access to medicines. The report pointed out that in FY2020, the US Customs and Border Protection (CBP) reported making 26,503 seizures of IPR-infringing goods valued at $1.3 billion, with China as the largest source.
The Watch List: The 2021 Special 301 Report by the Office of the United States Trade Representative said it had received stakeholder input on more than 100 trading partners, but focused its review on those submissions that responded to the request set forth in the notice published in the Federal Register to identify whether a particular trading partner should be named as a Priority Foreign Country, placed on the Priority Watch List or Watch List, or not listed in the Report. Following extensive research and analysis, the USTR identified 32 trading partners, with six on Priority Watch List:
- Argentina
- Chile
- China
- India
- Indonesia
- Russia
- Saudi Arabia
- Ukraine
- Venezuela
The groups: The industry groups comprised:
- Alliance for Automotive Innovation
- American Apparel & Footwear Association (AAFA)
- Association of Home Appliance Manufacturers (AHAM)
- Automotive Anti-Counterfeiting Council (A2C2)
- Communications Cable & Connectivity Association (CCCA)
- Consumer Healthcare Products Association (CHPA)
- Fashion Accessories Shipping Association
- Fashion, Jewelry, and Accessories Trade Association (FJATA)
- Footwear Distributors & Retailers of America (FDRA)
- Gemini Shippers Association
- Halloween & Costume Association (HCA)
- Juvenile Products Manufacturers Association (JPMA)
- Motor & Equipment Manufacturers Association (MEMA)
- Personal Care Products Council
- The Alliance for Safe Online Pharmacies (ASOP)
- The International AntiCounterfeiting Coalition
- The National Association of Manufacturers (NAM)
- The Toy Association
- TIC Council – Americas
- Transnational Alliance to Combat Illicit Trade (TRACIT).
