The SHOP SAFE Act of 2023 amends trademark law to hold online e-commerce platforms legally responsible for counterfeit goods sold by third-party sellers on their sites, but only if the platforms fail to take reasonable preventive measures. The law applies to platforms with at least $500,000 in annual sales, or smaller platforms that receive ten or more complaints about counterfeit goods involving health and safety risks. To avoid liability, platforms must implement several safeguards at no cost to trademark owners, including screening listings before they go live, maintaining a system to quickly remove counterfeit items, terminating sellers who repeatedly sell fakes, and providing ways for trademark holders to report suspected counterfeits and contact bad actors. The law focuses specifically on goods that pose health and safety risks, such as medications, food, automotive parts, and similar consumer products. The requirements take effect one year after the law is enacted, and the dollar thresholds are adjusted annually for inflation.
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