# SHOP SAFE Act of 2021 — Plain Language Summary

The SHOP SAFE Act is designed to protect shoppers from counterfeit and unsafe products being sold online. The bill requires online marketplaces—like Amazon, eBay, and similar platforms—to verify the identity of third-party sellers before allowing them to sell products on their sites. Think of it like requiring a store manager to check ID and background information before hiring someone to work the cash register. The goal is to make it harder for scammers and criminals to set up fake accounts and flood the internet with fake designer goods, knockoff electronics, contaminated food, or other dangerous products.

The law also requires these online marketplaces to keep detailed records about their sellers and make that information available to law enforcement when needed. If someone is selling counterfeit handbags or fake medications through an online platform, police and federal agencies can more easily track down who's behind it. Additionally, the bill gives the Federal Trade Commission (FTC) more power to go after online marketplaces that don't follow these rules, with potential fines for companies that ignore the requirements.

For everyday shoppers, this means you're less likely to accidentally buy fake or dangerous products when you shop online. The verification process makes it riskier for criminals to operate on major platforms, which should push more of them away. However, the bill could also mean slightly longer wait times for new sellers to get approved on these platforms, and some small legitimate sellers might face more paperwork and verification requirements. Overall, the intent is to make online shopping safer by creating a barrier that keeps bad actors out of the system.

SHOP SAFE Act of 2021

Coons, Christopher A.

Stopping Harmful Offers on Platforms by Screening Against Fakes in E-commerce Act of 2021 or SHOP SAFE Act of 2021 This bill makes an electronic commerce platform liable for infringement of a registered trademark by a third-party seller of goods that implicate health and safety unless the platform takes certain actions. Specifically, the platform may be contributorily liable if the seller uses a counterfeit mark in connection with selling, offering, or advertising such goods on the platform. The platform may avoid such liability by taking certain actions before the infringing act, including (1) requiring the seller to have a registered agent or a verified address for service of process in the United States, (2) verifying the seller's identity and contact information, (3) requiring the seller to agree to not use counterfeit marks with goods sold on the platform, (4) implementing technical measures to prescreen listings on the platform and remove listings for goods being sold with a counterfeit mark, and (5) implementing policies to remove and ban repeat offenders.