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President Trump has signed a memorandum asking the departments of Homeland Security, Justice and Commerce to submit a report later this year, determining the scale of the problem of selling fake products online, determining The effectiveness of current efforts to stop the practice. , and suggests additional actions if necessary, according to CNBC.
Trump's business advisor, Peter Navarro, has called the move a "punch" in online markets, but it remains to be seen whether this initiative will be a problem for markets such as Amazon and eBay, or if it will be finally profitable.
Here is what it means:The report and the resulting actions could help online markets because they are also against counterfeiting, but if they become responsible for what is sold in their markets, their business could suffer.
- Markets can attract more government interest in counterfeit products because they could boost consumer confidence in their offerings. Having a reputation for selling fake products can cause consumers to avoid shopping in a market because they worry about what they buy. That's why leading industry players, such as Amazon and Alibaba, have tried to combat fake comments and products on their platforms, and the US government's help could strengthen these efforts.
- For its part, the White House seems interested in shifting responsibility to the markets, which would complicate their operations.Navarro said that "our goal is to properly transfer the burden of trafficking to online and offline power plants and intermediaries. to intermediaries, "according to CNBC, this suggests that there is a real chance that markets will badume more responsibility for what they sell. If this materializes, the platforms will have to monitor their sellers more closely, which will eventually make it difficult to add new merchants and create a wide range of products to attract consumers.
The largest image:A new liability for counterfeiters would increase the growing number of barriers that the online marketplace faces in recent times.
This would be another example of regulation making the functioning of online markets more difficult. Now, the United States is able to collect taxes on online sales, even if the trader is not physically present in the market, markets may lose small sellers who can & # 39; They do not effectively collect these taxes, or they have to help sellers with the collection process.
Meanwhile, Amazon has been tested in the United States for selling in the same market it controls, and markets in India with foreign investment, such as Flipkart, owned by Wal-Mart, can not sell products which they own, which is detrimental to the market. flexibility and income opportunities.
Combined with the potential for liability badociated with the sale of counterfeit products through their platforms, markets are suddenly faced with serious operational problems that could lead some to drastically change their processes, which would alter an essential part of online shopping. for consumers.
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