SHOP SAFE Act of 2024

This bill amends the Trademark Act of 1946 to make electronic commerce platforms contributorily liable when a third-party seller uses a counterfeit mark on the platform to sell goods that implicate health and safety, unless the platform takes specific reasonable steps to prevent such infringement.

Sec. 2, Contributory liability for electronic commerce platforms: An electronic commerce platform is liable for a third-party seller's use of a counterfeit mark on goods that implicate health and safety, unless the platform shows it took reasonable measures before the infringement. These measures include: verifying the seller's registered agent or address for service of process; requiring the seller to consent to U.S. court jurisdiction and use accurate images; providing accessible means for trademark owners and consumers to report suspected counterfeits; implementing free proactive screening of listings for trademark owners who provide notice of their mark; implementing a free program to quickly disable or remove listings with actual or constructive knowledge of counterfeits; having a written policy to terminate sellers with repeated counterfeit use (typically three separate listings in one year, unless mitigating circumstances exist); screening to prevent terminated sellers from rejoining under a different identity; and providing trademark owners a verified basis to contact the seller or its agent if the owner has a bona fide belief of counterfeit use on health-and-safety goods. Reasonableness of measures considers platform size, resources, and other factors. The paragraph applies to platforms with at least $500,000 in annual sales, or smaller platforms after receiving ten qualifying notices. Platforms must implement security procedures to protect collected data. The paragraph does not limit other liability or defenses. Dollar amounts are adjusted for inflation from fiscal year 2026. Definitions are provided for 'consumer product', 'counterfeit mark', 'electronic commerce platform', 'good that implicates health and safety', and 'third-party seller'. The section takes effect one year after enactment.