SHOP SAFE Act of 2023

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

Sec. 2, Contributory liability for electronic commerce platforms: An electronic commerce platform is contributorily liable if a third-party seller uses a counterfeit mark in connection with goods that implicate health and safety. The platform can avoid liability by showing it took reasonable steps before the infringement, including: 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 product images; providing a way for trademark owners and consumers to report suspected counterfeits; implementing free proactive screening of listings for counterfeit marks (with registrant cooperation); implementing a free program to quickly remove listings with actual or constructive knowledge of counterfeits; having a written policy to terminate sellers with repeated counterfeit use (typically 3 listings in a year, with possible reinstatement under mitigating circumstances); screening to prevent terminated sellers from rejoining under a different identity; and providing a verified basis for a registrant to contact a seller if the registrant believes a counterfeit mark was used. Reasonableness of measures considers platform size, resources, and technology. The provision applies to platforms with at least $500,000 in annual sales, or smaller platforms after receiving 10 qualifying notices. Platforms must maintain security for collected data. Dollar amounts are adjusted for inflation. The term 'good that implicates health and safety' means a consumer product whose use can lead to illness, injury, or death if not produced in compliance with regulations. The bill takes effect one year after enactment.