Senate Finance Committee Says Congress Should Amend TFTEA to Fight Counterfeiting
A 17-month bipartisan investigation by the Senate Finance Committee has concluded that the Trade Facilitation and Trade Enforcement Act should be amended to help companies combat the sales of counterfeit goods.
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Although TFTEA allows CBP to tell companies about information that is on merchandise and its consumer packaging, companies that are trying to defend their copyrighted products would be better armed to prevent competition from counterfeits if they were told what information is part of the shipping containers' documentation. In a new 245-page report, "The Fight Against Fakes," Committee Chairman Chuck Grassley, R-Iowa, and ranking member Ron Wyden, D-Ore., are recommending that the law be changed so that CBP can share that information.
A 2018 Government Accountability Office report that did test-buys from online sellers found more than 40 percent of the products they purchased from third-party sellers were counterfeit. This investigation, which followed that report, also led the chairman and ranking member to recommend that TFTEA be amended to authorize CBP to share information with e-commerce platforms and with common carriers about counterfeits.
Grassley, in a press release announcing the report, said, "As consumers rely more on online marketplaces, bad actors are finding new ways to exploit legitimate channels to box out businesses and dupe consumers with bogus products," which can harm consumers, not just the companies whose goods are being infringed on.
“In 2019 the issue of counterfeit goods isn’t about knockoff purses sold out of the trunk of a car, it’s about dangerous, bogus products shipped from abroad directly into Americans’ hands. It’s clear that without additional tools, Customs and Border Protection is going to fall short in helping American businesses confront the sale of harmful counterfeits, so Congress should make sure it gets that authority. Protecting American consumers and the American brand at the same time is a no-brainer,” Wyden said.