Michael Hanson: Washington families deserve protection from criminals selling counterfeit and stolen goods

By Michael Hanson

Throughout the pandemic, e-commerce has played a pivotal role in bringing products to Washington families’ doorsteps. Unfortunately, fraudsters and professional thieves are taking advantage of this growth in online shopping by peddling their counterfeit and stolen goods to unsuspecting shoppers online.

Hiding behind fake screen names and bogus businesses they easily set up on third-party marketplaces like Amazon and Facebook Marketplace, these bad actors are able to rip off consumers and often evade law enforcement. To stop these criminals and protect consumers, lawmakers must pass the INFORM Consumers Act, a bipartisan piece of legislation that would protect those right here in Washington.

Online marketplaces are riddled with counterfeits – fake products that are unsafe, harmful and disregard the robust safety standards that Americans expect from any trusted retailer or manufacturer. These fraudulent sellers are hawking everything from fake automobile parts to counterfeit car seats to toys. And these criminals have stooped even lower by selling knockoff N95 masks during the pandemic.

The counterfeit industry not only puts families at risk, but it also threatens American economic competitiveness. Ninety percent of all counterfeit goods come from China. So, every time one of these fraudsters sells a product to an unknowing consumer, it is a sale stolen from a legitimate local business. These illegitimate sales alone have cost American retailers nearly $54.1 billion in sales. Unfortunately, e-commerce platforms have gone above and beyond to recruit China-based sellers for their marketplaces, despite their lack of concern for the health and well-being of Washington consumers.

Counterfeits are just half of the problem. Organized retail crime rings – professional criminals who rip products off store shelves for a living – are selling their stolen goods on online marketplaces. Across the nation, these criminal syndicates have made out with over $68 billion in stolen goods.

In the Evergreen State, retailers have faced over $2 billion in stolen goods. This criminal activity has cost over 19,000 jobs and over $1 billion in wages. These brazen criminals are putting Washington retailers and consumers at considerable financial and physical risk.

These criminals are often violent, causing hard-working retail employees in Washington to confront dangerous criminals. At the end of the day, professional theft rings will do whatever it takes to make a profit, even if that means assaulting innocent workers and unheeding customers in the process.

While Washington and federal law enforcement efforts are critical in stopping these nefarious activities, authorities need help. The INFORM Consumers Act, a bipartisan bill that just passed the U.S. House as part of the America COMPETES Act, would help prevent criminals from hawking counterfeit and stolen products online.

Under the legislation, e-commerce platforms would be required to verify their high-volume, third-party sellers, and sellers would need to disclose basic information to consumers. When Washington shoppers purchase items from their local retailer, they know exactly who they’re buying from and where to turn if something should go wrong. The same should be true of shopping online with third-party marketplaces. It’s an important step toward greater transparency and accountability. Sen. Maria Cantwell should support this common-sense measure and ensure that it makes its way to President Joe Biden’s desk. While there are few things Democrats and Republicans can agree on, stopping the sale of counterfeit and stolen products is something that any lawmaker can get behind.

Unless we prevent criminals from using online marketplaces to make a profit by selling dangerous and stolen goods, counterfeiting and organized retail crime will continue to harm Washington businesses and shoppers. Congress can help families and local businesses by passing the INFORM Consumers Act and bringing our nation’s consumer protection laws into the 21st century.

Michael Hanson is the spokesperson for Buy Safe America Coalition, in Washington, D.C. The coalition represents retailers, consumer groups, manufacturers, intellectual property advocates, and law enforcement officials who support efforts to protect consumers and communities from the sale of counterfeit and stolen goods.