GREENSBORO, N.C. — Many shoppers are already buying gifts for the holidays. The internet is a popular place to do that shopping, but many products sold online, including toys, may be counterfeit.
A 2019 report from the Organization for Economic Co-operation and Development found that counterfeit and pirated goods have rapidly grown in the internet era and make 3.3% of all global trade.
Kari Kammel from the Michigan State University Center for Anti-Counterfeiting and Product Protection testified before a Senate committee about the dangers of counterfeit goods.
"The sale of counterfeit goods online impacts national economies, companies of all sizes, including small and medium-sized enterprises, and consumers and has exploded in the past decade, even more so since COVID-19,” she said Tuesday.
Aaron Muderick is the founder of Crazy Aaron's Thinking Putty, a magnetic putty for kids that he sells on Amazon and other online retailers. Muderick said when it became popular, listings for putty that look similar popped up quickly from overseas manufacturers.
Muderick also testified during the Senate hearing and said there are hundreds of third-party sellers offering copies of his products.
"These bad actors often sell unsafe goods, which do not meet the stringent federal safety standards required of legitimate producers,” he said.
Muderick's magnets can't fit inside a tube used to measure choking hazards. Magnets from other online products easily go in.
Congress is now considering legislation called the INFORM Consumers Act, designed to combat the sale of counterfeit goods online.
"If somebody is going to sell a large volume of goods online on a marketplace, they should tell the marketplace who they are," said Senator Dick Durbin (D-IL) "Doesn't that sound pretty basic? The seller should be verified.”
Amazon, Etsy, and eBay are endorsing the House version of the bill. All those companies are members of the Internet Association.
"We recognize the responsibility and the important role we play in the eco-system in stopping this activity,” K. Dane Snowden, the president and CEO of the Internet Association, told lawmakers.
The legislation’s chance of passing is improving now that it has support from businesses and both parties.