Q&A: Shoppers Beware of Online Scrooges

Q&A: Shoppers Beware of Online Scrooges

With U.S. Sen. Chuck Grassley

Q: How concerned should holiday shoppers be about counterfeit products?

A: Unfortunately, the season of giving is prime time for rip-off artists to worm their way into the wallets of American shoppers during the holidays. As co-chair of the Congressional Trademark Caucus, I lead an annual dialogue in December to raise public awareness about counterfeit products to help educate consumers, particularly during the holiday shopping season. Families work hard for their money and when buying presents for friends and loved ones, you don't want to end up gifting them with imposter products and getting ripped off with fake knock-offs. What's worse, some of these fake products pose potential health hazards because they're not in compliance with safety standards, storage requirements or quality controls.

With nearly one-third of holiday spending captured by online shopping, it's even more important for shoppers to be extra savvy. Whether you're splurging or bargain hunting, every hard-earned dollar spent on toys, clothing, electronics, perfume, cosmetics or jewelry ought to be spent on authentic products. Avoid getting duped by illicit goods. Sen. Chris Coons of Delaware, co-chair of the bipartisan trademark caucus, and I use our policy platform to put fraudsters on notice. This year, we were again joined by the International Trademark Association and the U.S. Chamber of Commerce's Global Innovation Policy Center to help spread the word and arm consumers with helpful tips. Make no mistake, fake goods rip off customers and harm the bottom lines of law-abiding brands and entrepreneurs. Sales of counterfeit products also have a ripple effect on Main Street, making it harder for businesses to grow and create jobs.

In the previous Congress, I cosponsored bipartisan legislation called the INFORM Consumers Act that went into effect in 2023. The transparency law gives consumers better tools to identify third-party online sellers and deter criminals from re-selling stolen or counterfeit items via online marketplaces. I've also introduced bipartisan, bicameral anti-counterfeiting legislation to hold fraudsters accountable and strengthen protections for consumers. It would authorize U.S. Customs and Border Protection to share suspected counterfeit packing and shipping information with key intellectual property rights holders, e-commerce platforms and transportation carriers. Adding more federal law enforcement tools will help the private sector root out bad actors.

Q: What tips should shoppers keep in mind before making a purchase?

A: Shoppers need to be wary and use common sense when making a purchase. Trust your gut instinct. If the price sounds too good to be true for a luxury item or branded product, it likely is. Remember, purchasing counterfeit merchandise inflicts economic harm along the supply chain and illicit goods put end users at risk for unsafe products. Don't allow the convenience of online shopping and having products delivered straight to your doorstep cloud your judgment. Counterfeits benefit transnational criminals and infringe on the intellectual property rights of law-abiding producers. Rooting out bogus goods merits your attention for every online purchase. Billions of dollars of counterfeit sales rip off consumers every year, especially during the holiday season.

At our policy forum in December on Capitol Hill, experts advised consumers who shop online to actively rule out counterfeit merchandise. Double-check branded websites to confirm third-party sellers are selling an authentic item the company produces. Be sure the URL is legitimate; bad actors may use typos in their online address to mimic an authentic website to trick consumers into buying counterfeit products or steal their financial information. Grammar mistakes and fuzzy photos in an online product description are red flags for a fraudulent product. Call the phone number often listed on the item's packaging to ensure it reaches the branded company. Throughout the year - and particularly during gift-giving season - be cognizant that fraudulent third-party sellers are lurking across e-commerce platforms. Don't let these rogue Scrooges steal your money and put unsafe toys in the hands of kids. The nonprofit Toy Association issues guidance for consumers to learn more at https://playsafe.org. Report counterfeit product scams to the Federal Trade Commission (FTC) at https://ReportFraud.ftc.gov

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