Becca Trate

State product liability laws traditionally hold manufacturers, distributors, and sellers strictly liable for defective products they bring to market. As consumers increasingly make purchases from online marketplaces—platforms that aggregate products from multiple third-party sellers—new questions arise about how to best protect them from defective products that pose a risk to health and safety.

Reviews play a major role in e-commerce sales by allowing consumers to make informed decisions about products and businesses based on information from previous customers. However, fake reviews can impact trust in products and businesses by deceptively influencing consumer behavior.

State policymakers in Florida should not pass legislation that duplicates existing federal laws, like the INFORM Act, with confusing and potentially contradictory stipulations. To truly provide consumer protection around products from countries of concern, they should work with Congress to enact a tougher federal law.

The Consumer Financial Protection Bureau’s (CFPB) proposed rule on subjecting large non-bank participants in the general-use digital consumer payment application industry to CFPB supervision will limit the ability of non-bank firms to continue offering innovative products and services.

To address concerns the de minimis threshold makes it easier for foreign companies to send illicit goods and products made with forced labor to the United States, without undermining legitimate e-commerce, Congress should increase the documentation requirements for all foreign shipments and cap the use of the de minimis exemption for high-volume sellers.

The new SHOP SAFE Act, introduced in late September by U.S. Senators Chris Coons (D-Del.) and Thom Tillis (R-N.C.), will help crack down on harmful counterfeit products online. There are a few changes that could make the bill more effective.

Policymakers need to consider the long-term interests of consumers and the continued growth of the e-commerce sector when drafting and implementing new laws and regulations that could slow down the fast logistics networks on which consumers depend.

It is important policymakers do not demonize algorithmic pricing and allow firms to use algorithms to automatically adjust prices in response to changing market conditions.

Addressing these problems requires a global, coordinated approach, with engagement from online platforms, rightsholders, law enforcement agencies, and policymakers, with a focus on developing technology and voluntary agreements from stakeholders.

Congress should amend the Combating Organized Retail Crime Act to underscore the differences between shoplifting and organized retail crime while empowering law enforcement to find and target stolen goods on online resale platforms.

The Senate has introduced legislation to give consumers access to information about the origins of products sold online. But despite its good intentions, the bill would create uneven playing fields for brick-and-mortar stores, online retailers, and online marketplaces.

Businesses and e-commerce platforms have taken steps to remove fraudulent reviews, but policymakers need to address the problem of fake review brokers, or those who facilitate the creation and posting of fake reviews.

Watch ITIF's Center for Data Innovation's webinar discussing the challenges inhibiting drone use in package delivery, where the drone tech and regulations affecting the tech are heading, and how policymakers can support safe drone operations.

Watch ITIF's Center for Data Innovation's panel discussion about the prevalence of fake online reviews, their impact on companies and consumers alike, and steps policymakers can take to stop their spread.

Join the Center for Data Innovation for a panel discussion on the future of the Endorsement Guides and how platforms and policymakers can work together to protect consumers, promote innovation, and improve advertising online.

Watch Center for Data Innovation's panel discussion about how the public and private sector can work together to establish global norms and best practice to better protect consumers from counterfeits and ensure respect for intellectual property in e-commerce.