Schakowsky, Bilirakis Applaud House Passage of Bill Protecting Consumers from Counterfeit, Dangerous, Stolen Products Online
WASHINGTON - Today, Congresswoman Jan Schakowsky (IL-09) and Congressman Gus Bilirakis (FL-12), Chair and Ranking Member of the Consumer Protection and Commerce Subcommittee of the House Energy and Commerce Committee, celebrated the House passage of their bill, the Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers (INFORM Consumers) Act, which directs online marketplaces to verify the identity of high-volume third-party sellers of consumer products. Requiring authentication of the identity of these online sellers will help deter organized retail crime rings who seek to sell stolen or counterfeit goods online. The bill will also benefit consumers by providing them with basic identification and contact information for the high-volume third-party sellers.
"For too long, criminals have raked in profits by selling dangerous, counterfeit, and stolen products online. Consumers deserve to shop with the peace of mind that they get what they pay for. Today, we took a stand for consumers and said enough is enough," said Congresswoman Jan Schakowsky. "The INFORM Consumers Act, which I introduced with my friend Rep. Gus Bilirakis (FL-12), passed the House with bipartisan support, and will protect consumers and legitimate businesses by holding online marketplaces accountable. We must protect Americans online. I urge the Senate to swiftly pass this bill."
"This pro-consumer legislation enacts uniform, nationwide rules to promote safety, increase transparency, and provide greater accountability for online sales. It will provide a layer of enhanced protections for consumers from stolen and counterfeit goods without adding undue burdens on small mom-and-pop businesses," said Congressman Gus Bilirakis. "This bill is a win-win for consumers and legitimate businesses in the online marketplace."
Along with the rise in popularity of online marketplaces like Amazon, Facebook, and eBay, there has been an increase of stolen, counterfeit, and dangerous consumer products offered for sale online to consumers. Currently, it is relatively easy for third-party sellers to go onto an online marketplace, create an account, sell high volumes of illicit goods to unwitting consumers, and then shut down the account and disappear before facing any accountability.
The INFORM Consumers Act would require online marketplaces to verify the identity of their high-volume third-party sellers of consumer products by obtaining and verifying information including the seller's name, tax ID, bank account information, and contact information. The bill would also direct online marketplaces to ensure that consumers have sufficient information so they can identify and contact a high-volume third-party seller who has sold them consumer products. The online marketplace would also have to provide a way for customers to report to the marketplace suspicious marketplace activity such as the selling of stolen or counterfeit goods.
Supporters of the INFORM Consumers Act include: the U.S. Chamber of Commerce, the National Association of Manufacturers, AFL-CIO, the Fraternal Order of Police, Consumer groups including Consumer Reports and U.S. PIRG, the Buy Safe America Coalition (which includes the Retail Industry Leaders Association, the Alliance for Automotive Innovation, the Motor & Equipment Manufacturers Association, the National Association of Chain Drug Stores, the Toy Association, the National Association of Wholesaler-Distributers, the Consumer Healthcare Products Association, the International Council of Shopping Centers, the American Apparel & Footwear Association, The Home Depot, Walgreens, 3M, CVS Health, Nordstrom, Ulta Beauty, Dick's Sporting Goods, Gap Inc., HP, Levi Strauss & Co., Phillips, Rite Aid, and more), the Coalition to Protect America's Small Sellers, including eBay, Etsy, Poshmark, Pinterest, OfferUp, Redbubble, and more.
The American people have made it clear that they want basic protections online, now it is the Senate's turn to deliver.
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