A state attorney general recently filed a lawsuit against an e-commerce platform and its parent company alleging, inter alia, sales of counterfeit goods bearing the trademarks of iconic state brands. This action epitomizes a growing trend: states seeking to enhance their enforcement against counterfeiters, particularly those operating on e-commerce platforms.

Key Developments in State-Led Anticounterfeiting Efforts

States appear to understand that counterfeit goods pose significant economic and reputational risks not only to local industries and brand owners, but the states themselves because of threats to their revenue and potential harm to consumer trust. Attorneys general in myriad states have initiated lawsuits against e-commerce platforms accused of enabling and profiting from widespread sales of counterfeits. The emerging trend of state-led litigation reflects a growing recognition among state officials of the urgent need to address online counterfeiting, particularly as comprehensive federal enforcement remains limited.

Federal Legislative Landscape

The federal legislative response to online counterfeiting continues to lag behind the rapid growth of the problem, leaving enforcement efforts piecemeal at best.

One key piece of federal legislation, the INFORM Consumers Act—passed in December 2022 and effective as of June 2023—requires online marketplaces to collect, verify, and disclose information about third-party sellers to improve transparency.¹ The INFORM Act, however, stops short of imposing proactive enforcement obligations or creating liability for platforms that continue to host sellers offering counterfeit products.² Under the INFORM Act, the onus of enforcement remains on the FTC and state authorities, and some have criticized the FTC for failing to act since the passage of the INFORM Act in 2023.³

Meanwhile, the SHOP SAFE Act—repeatedly introduced in Congress but not yet enacted—seeks to amend the Lanham Act to hold e-commerce platforms liable for contributory trademark infringement unless they implement robust seller vetting, takedown procedures, and anticounterfeiting measures.⁴

Without SHOP SAFE or similar legislation, platforms remain largely insulated from legal accountability. To date, the INFORM Act’s limited scope—focused on seller disclosure rather than enforcement—has failed to meaningfully deter bad actors.⁵ This legislative void leaves brand owners with limited tools at the federal level to effectively combat the escalating threat of online counterfeiting, hence the escalating trend of state-sponsored anticounterfeiting litigation.

Next Steps for Brand Owners

• Engage with State Authorities: Build relationships with state officials and participate in enforcement initiatives and training when possible.
• Strengthen Platform Partnerships: Develop relationships and work closely with e-commerce platforms’ internal enforcement units to identify and remove counterfeit listings.
• Enhance Internal Controls: Implement robust supply chain and seller verification processes to minimize counterfeit risk.
• Monitor Legislative Developments: Stay informed about both state and federal legislative changes that may impact anticounterfeiting compliance obligations.
• Advocate Through Lobbying: Actively engage in lobbying efforts to influence policy and strengthen intellectual property protection laws at the state and federal levels.

Conclusion

As more states move to combat counterfeiters on e-commerce platforms, brands should take advantage of the new attention anticounterfeiting efforts have and will likely continue to receive. It would be wise to build relationships with state officials to assist collaboratively in these critical efforts. Proactive engagement with state authorities and e-commerce platforms will be essential in navigating and positively developing this rapidly changing enforcement landscape.

In Case You Missed It:

Earlier installments of this series are available below.

Part one: Counterfeit ‘Lafufus’: A Case Study in Growing Cross-Industry Challenges for Brands, is available here. 

Part two: Schedule A Cases: The Future of a Critical Component of Comprehensive Brand Protective Strategies, is available here.

1. Gabrielle Fonrouge, The Inform Act just took effect — here’s how it aims to target organized retail theft, CNBC (Jun. 27, 2023). ↩
2. Michael Hanson, Retailers Urge FTC: Strengthen Consumer Safety Enforcement, Retail Industry Leaders Association (Jun. 26, 2025). ↩
3. Id.↩
4. Melissa Daniels, Unpacked: The Shop Safe Act is the latest effort to crack down on counterfeit sales, Modern Retail (Oct. 10, 2023). ↩
5. Id.↩