To amend the Trademark Act of 1946 to provide for contributory liability for certain electronic commerce platforms for use of a counterfeit mark by a third party on such platforms, and for other purposes.
The SHOP SAFE Act of 2024 holds online marketplace platforms legally responsible for counterfeit goods sold by third-party sellers, but only for products that affect health and safety. E-commerce platforms can avoid liability if they take specific preventive steps, including verifying seller identities, requiring sellers to consent to U.S. court jurisdiction, screening listings before they go public, removing counterfeit items when notified, and terminating repeat offenders. The requirements apply to platforms with at least $500,000 in annual sales, or smaller platforms once they receive ten notices about counterfeit products. The law takes effect one year after passage and adjusts the sales threshold annually for inflation, protecting consumers from potentially dangerous counterfeit goods like medications, supplements, and other safety-sensitive products while giving platforms clear benchmarks for compliance.
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