Toy Association Applauds White House Report on Counterfeits in E-Commerce

January 24, 2020 | The Department of Homeland Security has released a new report, “Combating Trafficking in Counterfeit and Pirated Goods,” concluding current government enforcement efforts and private sector actions have thus far been insufficient to stem the flow of counterfeit products sold to U.S. consumers.

The report, which calls for stronger regulatory, legislative, and enforcement efforts, echoes many of The Toy Association’s concerns and solutions raised in the Intellectual Property Committee’s white paper, “The Real Threat of Fake Toys” and in comments submitted to the Department of Commerce.

Among its recommendations, the report calls on marketplaces to adopt strong best practices such as verifying third-party certifications, as legally required for products like toys, and more clearly identifying the third-party seller’s identity. The report further suggests the Department of Commerce assess the liability of platforms in their role of counterfeit sales.

“The Toy Association and its members applaud the White House’s commitment to cracking down on intermediaries who are making substantial profits off the sale of inferior, uncertified, and unsafe toys and other products that put our children and families at risk,” stated Steve Pasierb, president & CEO of The Toy Association. “Every business selling toys in the United States must be held to the same high standards for safety as the responsible toy brands and brick-and-mortar retailers that consumers have come to know and trust. Anything less than that is simply unacceptable and must be stopped.”

The Toy Association continues to raise awareness and demand action on this critical issue through roundtable meetings and hearings with top government officials and enforcement agencies, as well as direct communication and advocacy with several marketplace platforms. In 2019, the Association was invited to testify before Congress about the dangers of counterfeits, and to participate in a roundtable discussion with top White House officials on regulatory and legislative actions to combat the online sale of illicit toys and other children’s products.

“Under the current third-party marketplace system, intellectual property rights owners shoulder much of the burden in policing marketplaces, while increasing customs enforcement at the taxpayers’ expense will only go so far in scanning the millions of packages coming into the country each day,” added Pasierb. “All e-commerce platforms have an urgent role to play and responsibility to act.”

Toy Association members who would like to learn more or get involved with the Association’s IP Committee are encouraged to contact Rebecca Mond, vice president of federal government affairs.