We have seen how the e-commerce companies are facing a problem of third-party sellers selling counterfeit products on their platform. This is also the reason why big retailers such as Nike and others have left Amazon.
Since they are selling original products on the platform which also shows customers products looking similar at a much lower price, there is a dilemma and the sales of bigger retailers are hurting due to it.
Due to this, there has been a lot of talk about how e-commerce companies should tackle this problem and who should be held responsible for the same. Now, a new bill has been introduced in the US which says that e-commerce companies should be held responsible for counterfeit goods available on the respective platforms. Also, this bill is a bipartisan one which means that it is likely to become a law very soon.
The reasoning behind this bill is that even though the goods might be sold by third-party sellers, it is the platform which is responsible for approving those products and this is a way to make them have tighter control over what is being sold on the platform.
This bill recommends that if there is a failure to take these steps then those e-commerce firms can be held liable for the sale of counterfeits.
Now, this seems to be a great solution for people who get duped by such counterfeit goods since they can get their refunds from the platform where they bought it without worrying about who sold the product.
On this bill, eBay said that “Counterfeits are not welcome on eBay. We are reviewing the legislation and will continue to work with the Committee on this important issue.”. Also, Amazon acknowledged the bill saying that “We are actively fighting bad actors and protecting our store and we will continue to work with brands, government officials, and law enforcement,”