Bean Town Times

At a hearing on Wednesday, Massachusetts lawmakers discussed a bill aimed at reducing online counterfeit and stolen goods from retailers. The proposal comes at a time when online retailers are starting to form solid positions of support for federal legislation that addresses these issues. 

Jason Brewer, executive vice president of the Retail Industry Leaders Association, testified at the session. 

“Retailers are being targeted by criminal networks who know exactly how to slide under felony thresholds," Brewer said. "The American marketplace is now flooded with billions of dollars of counterfeit products—much of it coming from China—and much of it for sale, appearing legitimate, on an online marketplace.” 

During his testimony, he also referenced a recent news story in The Verge that outlined just how easy it is for banned sellers from China to gain access to Amazon almost immediately by simply changing their name. 

“One seller dropped a single letter from their name and was back in business," Brewer said. "So, let’s be clear: whatever Amazon and other marketplaces say they are doing—it isn’t working. While representatives for Amazon and Facebook will tell you they collaborate with retailers and law enforcement on organized retail crime investigations, the truth is, they only cooperate when delivered a subpoena.”

Massachusetts' HB 138 would protect consumers from online fraudulent sellers by requiring disclosure of seller information online. Reps. Paul Tucker and Steven Ultrino are co-sponsors of the bill. 

The passage of the INFORM Act would override any similar state laws, Axios reports. The bill is from House Energy & Commerce Consumer Protection Subcommittee chairwoman Jan Schakowsky (D-Ill.) and ranking member Gus Bilirakis (R-Fla.).

The House bill would require the collection and verification of online marketplaces to have made at least 200 sales annually with a value of $5,000 or more. Marketplaces would also have to provide contact information for the business to consumers.

There’s been a national push from lawmakers and some retailers to pass consumer protections requiring online sellers to disclose some details of their business in order to protect against counterfeit and stolen goods. A coalition of retailers called PASS, which includes Etsy and eBay, have recently joined other major retailers in the call for new legislation.

Amazon has been accused of opening the door to counterfeit goods being sold on its platform because little is known about the origin of the sellers on its platform, according to a Business Insider report.

Amazon had been the last major online retailer to oppose the INFORM Act, but this week changed its public stance to support the federal bill, along with others in the PASS coalition.