WASHINGTON, March 5, 2020 – Counterfeit gear can be hard on the head. Deadly, in fact.
That was the witness testimony – and live demonstration by a congressman – from a Wednesday House Energy and Commerce subcommittee hearing on the impact of counterfeit items on third-party seller marketplaces.
Andrew Love, head of brand security for Specialized Bicycles, brought several examples of counterfeit goods purchased online through platforms like Amazon and eBay.
Love offered to destroy a counterfeit helmet to demonstrate his point if the Congress members wanted. However, his offer was largely ignored for the majority of the hearing until Rep. Ben Lujan, D-New Mexico, joined the hearing towards the end.
Lujan shared an anecdote about his recent bike accident when he went over his handlebars into “a bed of rocks.” “Nonetheless, that bicycle helmet saved me,” said Lujan.
The helmet, pre-crash.
Love, who investigates fake bicycles and gear being sold online, invited Lujan to participate in a demonstration of the dangers of these counterfeit items.
Finally, Chairwoman Jan Schakowsky, D-Illinois, consented to the demonstration, with a loud chuckle.
Love set a poorly made helmet on the ground. Although of poor craftsmanship, that was otherwise undetectable based on the appearance. He invited Lujan to jump on it, replicating the force a biker might experience in a fall or accident.
In one swift jump in front of the witness table, Lujan crushed the helmet, while splintered pieces of helmet scattered across the carpet.
Lujan declared that if he had been wearing that counterfeit helmet, he would not have survived his incident.
“People’s lives are at risk,” said David Friedman, vice president of advocacy for Consumer Reports.
“We need to invest in innovation at these companies and in Congress to block the counterfeits, the dangerous products, and the fake reviews,” urged Freidman.
“Bad actors try to prey on consumers,” especially in the wake of coronavirus fears, said Rep. Cathy McMorris Rodgers, R-Washington. She asked what the platforms are doing to address false products aimed to target those fearful of a coronavirus pandemic.
Vice President of Worldwide Customer Trust for Amazon Dharmesh Mehta said the online retail giant has “removed, proactively, more than a million products making false claims and tens of thousands of products that were attempting to price gouge customers,” said Mehta.
Mehta explained that Amazon has several initiatives to address counterfeit products and bad actors.
For example, the Amazon Transparency Program allows brands to apply “a unique transparency code on every product that uniquely identifies it,” so the same product doesn’t have the same ISBN code, said Mehta.
Rep. Frank Pallone, D-New Jersey, challenged Amazon’s engagement with commingled inventory.
In a prehearing memorandum, Pallone wrote, “with commingling, customers purchasing a product directly from a retailer or a specific third-party seller may unknowingly receive the product from a different seller.”
Mehta admitted that with new products, if there is a product from a different seller closer to the customer, then they will receive the item closest to them, but commingling does not apply to used items for sale.
Global Trade Watch Director Lori Wallach explained the loophole that allows for so many counterfeit products to evade inspection.
The de minimis limit is $800, meaning goods that cost less than the limit can circumvent inspection when entering the United States.
Some sellers will pack products together and ship them to Mexico or Canada as goods “in transit,” and then someone packs the items individually so they can cross the border as di minimis and avoid inspection, said Wallach.
Editor’s Note: The story has been update with more color and details about Rep. Lujan’s big jump.
Telecom, Online Marketplace Consumer Protection Bills Pass House Committee
Among the bills sent to the House, the committee passed two on telecom and one on consumer safety.
WASHINGTON, November 17, 2021 – The House Committee on Energy and Commerce passed several bills Wednesday, including two on telecom policy and one meant to address consumer safety when using online retailers.
H.R. 1218, the “Data Mapping to Save Moms’ Lives Act,” H.R. 2501, the “Spectrum Coordination Act,” and H.R. 5502, the “Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act” were all passed unopposed and without amendments.
H.R. 1218 is a bill intended to target broadband resources to areas where “telehealth may be useful in the monitoring and care of pregnant women,” bill co-sponsor Rep. G. K. Butterfield, D-North Carolina, said during the hearing, adding “it is a moral imperative to address the maternal mortality crisis in the United States.” The bill’s other sponsors are Reps. Lisa Rochester, D-Delaware, and Gus Bilirakis, R-Florida.
“To effectively deploy 21st Century resources to address the shocking rates of maternal mortality, the nation must first identify which communities lack adequate Internet access and have high maternal mortality rates. That is exactly what this bill seeks to do,” said Rochester.
H.R. 2501, which is sponsored by Bilirakis, requires the National Telecommunications and Information Administration – an agency of the Commerce Department – and the Federal Communications Commission to update the memorandum of understanding on spectrum coordination, to ensure that spectrum is shared efficiently, and that a process is created to better resolve frequency allocation disputes.
H.R. 5502, co-sponsored by Rep. Jan Schakowsky, D- Illinois, takes aim at online retailers that do not take responsibility for the products that third-party groups sell on their marketplace. Legislators supporting this legislation asserted that this has allowed bad actors to sell unsafe, counterfeit, or otherwise fraudulent goods on common marketplaces like Amazon and Etsy.
“What we’re saying now is very simply that online marketplaces will have to verify that the identity of their higher volume sellers, so they have to take some responsibility,” said Schakowsky. “It’s not just about counterfeiters, it’s not just about defrauding – we are talking about danger every year around this time.”
“This legislation is really going to help the consumers and legitimate businesses that are selling products and becoming victims themselves.”
Amazon has been on the wrong end of state court rulings recently that have made it liable for defective products. Experts on a Information Technology and Innovation Foundation event in May remarked that this could open the floodgates for these types of lawsuits, a contrast to when Section 230 liability protections for platforms have historically been used as strong defenses for these platforms.
Now that these bills have passed their committee, they will be sent to the House to be considered. Should they successfully be passed in the House, they will be sent to the Senate and undergo a similar procedure; if the bills are successfully passed in both the House and Senate, they will then be sent to President Joe Biden’s desk, where he can decide whether to sign them into law.
House Commerce Committee Aligned on Telecom, Mapping and Supply Chain Security, Says Ranking Member
March 18, 2021 – House Energy and Commerce Committee Ranking Member Cathy McMorris Rodgers, R-Washington, said Wednesday that the committee was among the most bipartisan on issues including telecom.
Rodgers, who was speaking at the Internet Innovation Alliance with co-chair Bruce Mehlman, said that her Republican colleagues have put forth 28 solutions that would remove regulatory barriers and streamline broadband processes yet demonstrate funding is being spent wisely. She called on the government to ensure cost-effective ways to spend federal dollars.
She said the committee’s priority must be on accurate broadband mapping. That requires funding for more granular data. She also argued for national security against China, including on solar and wind energy products.
Rodgers also said she was excited about low-earth orbit satellites and the potential future they bring in connecting parts of the country with internet that have been “economically unfeasible in the past.”
Asked of her thoughts on virtual learning from home, especially how her 14-year old son with down syndrome is faring, Rodgers said she was completely in favor of reopening schools safely because not all parents have the means to provide optimal learning spaces at home.
Calling herself a working mother who could afford to provide an assistant to help her son through his school day, Rodgers said it was not the best way to learn when compared to in-person schooling.
This came after she said the country has the best networks and “some of the fastest speeds at the lowest prices in the world for internet service.”
Emphasis on Combating COVID-19 and Rebuilding Infrastructure at First Energy and Commerce Meeting
January 28, 2021—During the first organizational meeting of the House Commerce Committee of the 117th Congress, Chairman Frank Pallone of New Jersey welcomed the newest members of the House Energy and Commerce Committee.
The bulk of the Committee’s first meeting was dedicated to discussing best practices to reduce healthcare and prescription drug costs, rebuild and modernize the nation’s infrastructure, and combat climate change.
Members further discussed rebuilding and restoring the essential functions of key agencies. Strengthening the Center for Disease Control and the Environmental Protection Agency were deemed essential. Members considered the waning of the two agencies to be at “the very heart” of creating some of the nation’s most pressing current legislative and policy issues.
Members also approved governing procedures and announce subcommittee chairs, ranking members, and other subcommittee assignments.
Republican Rep. Cathy McMorris Rodgers of Washington is the new ranking member, and the first woman in that role for the committee.
Pallone further announced Democratic members joining the Committee, including Rep. Kathleen Rice of New York, known for her interest in climate change and infrastructure. Rep. Angie Craig, of Minnesota, was touted for work on the Affordable Care Act. Rep. Kim Schrier of Washington was recognized for her work as a pediatrician.
Rep. Lori Trahan of Massachusetts has an interested in the opioid pandemic and the environment. Rep. Lizzie Fletcher of Texas is focused on first responders and firefighting foams.
Pallone addressed members of the committee in the 117th Congress
Pallone thanked members and reiterated the need to enact policies to combat COVID-19 through vaccine distribution. He criticized former President Donald Trump for lacking effective implementation strategies to vaccinate more Americans sooner.
He said policies were needed that “provide critical assistance to struggling families, rebuild our economy, and bring an end to the pandemic, so people can begin to safely return to regular practice of life.”
Pallone praised President Joe Biden’s executive orders on vaccine distribution, expanded access to testing, and utilization of the Defense Production Act, which allows continued access to medical supplies and personal protective equipment for testing and vaccination.
The committee also took time to celebrate its own 225th birthday, which occurred last month. It is the oldest committee in the House.
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