In an article recently published by Total Retail, Jeremiah Foley addresses the issue of widespread counterfeit and pirated good sales, a byproduct of third-party selling in online marketplaces. Currently, online marketplaces are not held liable for the sale of counterfeit or pirated products sold by a third-party through their service, but the INFORM Consumers Act will change how these markets operate.
Foley clarifies, “It will not necessarily stop third parties from selling pirated or counterfeit goods on online marketplaces, though it may help reduce it.”
He specifies that online markets will be required to collect information on high-volume third-party sellers, verify the information, disclose third-party information of sellers over a certain dollar amount, introduce a reporting system and suspend sellers that do not comply with the requirements. Foley provides insight into what the future will look like with the INFORM Act in place.
To view the full article, click here.