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President Trump has signed a memorandum that requires the Departments of Homeland Security, Justice, and Commerce to deliver a report later this year that decides how much of a problem the sale of online counterfeit goods is, determines how effective current efforts are at stopping the practice, and suggests additional actions if necessary, according to CNBC.
While the move was described as “a shot across the bow” to online marketplaces by President Trump’s trade advisor Peter Navarro, it remains to be seen if this initiative will be problematic for marketplaces like Amazon and eBay, or if it will ultimately benefit them.
Here’s what it means:The report and resulting actions could help online marketplaces since they’re also against counterfeiting, but if they gain liability for what’s sold on their marketplaces it could hurt their business.
- Marketplaces may welcome more government interest in counterfeits because it could boost consumer trust in their offerings. Having a reputation for selling counterfeit products can lead consumers to avoid shopping with a marketplace because they’ll be concerned about what they buy. This is why top industry players like Amazon and …