Counterfeit products have become one of the biggest hidden costs facing ecommerce businesses. From knockoff listings on online marketplaces to fake imports entering the U.S. through increasingly complex supply chains, counterfeiters continue to undercut legitimate brands, damage customer trust, and siphon revenue away from honest businesses.

Now, Congress is taking another step toward addressing the problem.

On April 27th, the US House of Representatives passed the bipartisan “Counterfeit Notification Act” (H.R. 4930), legislation designed to strengthen how Customs and Border Protection (CBP) identifies and disrupts counterfeit and pirated imports entering the country. The bill previously passed the House Ways and Means Committee unanimously in December 2025 by a 40-0 vote — an important signal of broad bipartisan support for stronger anti-counterfeiting enforcement.

For ecommerce brands, especially small and mid-sized businesses competing against counterfeit knockoffs online, this is a development worth watching closely.

What the Bill Would Do

The Counterfeit Notification Act, first introduced in August 2025 by Representatives Blake Moore (R-UT) and Brad Schneider (D-IL), would expand CBP’s ability to share shipment and packaging information tied to suspected counterfeit imports with:

• intellectual property rights holders,
• transportation carriers, and
• ecommerce platforms.

Today, there are often limits on what information can be shared during counterfeit investigations. The bill aims to improve coordination between government agencies and private-sector stakeholders so counterfeit products can be identified and stopped earlier in the supply chain before they reach consumers.

Companion legislation was also introduced in August 2025 in the Senate by Senators Chuck Grassley (R-IA) and Maggie Hassan (D-NH), further increasing the bill’s credibility and momentum.

Why This Matters for Ecommerce Businesses

For many ecommerce brands, counterfeit products are not just an annoyance — they are a direct business threat. Counterfeit listings can:

• undercut pricing,
• dilute brand reputation,
• confuse consumers,
• create customer service headaches,
• and damage trust in legitimate sellers.

This is especially true for growing brands selling on marketplaces where counterfeiters can quickly create copycat listings using stolen images, trademarks, and product designs.

Many EIA members import products manufactured overseas or rely on global fulfillment networks. Those international supply chains can also create opportunities for counterfeit goods to enter the marketplace alongside legitimate products.

The proposed legislation attempts to address a long-standing frustration from brands: counterfeit enforcement often happens too late, after products are already circulating online and reaching consumers. By improving information sharing between CBP, ecommerce platforms, and rights holders, lawmakers hope legitimate businesses can identify suspicious shipments earlier and respond faster.

A Rare Area of Bipartisan Agreement

Trade, imports, and ecommerce regulation are often politically contentious topics. But anti-counterfeiting enforcement has increasingly become an area where lawmakers from both parties appear aligned.

The unanimous 40-0 committee vote and bipartisan House support matter because they suggest lawmakers view counterfeit imports as both a consumer protection issue, and a legitimate economic threat to American businesses. That bipartisan support also gives the bill a more realistic path forward compared to many ecommerce-related proposals that stall in Congress.

While tariffs and trade policy often dominate headlines, counterfeit goods create another layer of unfair competition that disproportionately harms small and mid-sized ecommerce brands without the legal resources or enforcement teams available to larger corporations.

This legislation also reflects a broader trend policymakers are increasingly focused on: improving visibility and accountability throughout global ecommerce supply chains.

What Happens Next?

The bill now moves to the Senate, where companion legislation has already been introduced. While there is still a legislative process ahead, the bipartisan momentum behind the proposal makes it one of the more credible ecommerce-related trade measures currently moving through Congress.

For ecommerce businesses, the immediate takeaway is not that counterfeit problems are suddenly solved. But the legislation does signal growing recognition in Washington that counterfeit imports are a serious issue impacting legitimate online sellers, brands, and consumers alike.

As policymakers continue debating trade, imports, marketplace accountability, and ecommerce regulation, counterfeit enforcement is likely to remain part of the conversation. The EIA will continue monitoring the bill and broader policy developments affecting ecommerce businesses navigating increasingly complex global supply chains and competitive pressures.

Join the EIA today to help strengthen and shape policies that affect all ecommerce businesses. Together, we can continue to create the future of ecommerce. Subscribe to EIA email updates to stay informed on key developments and their impact on your business. 

Ecommerce Innovation Alliance provides members with analysis of litigation and regulatory developments affecting online commerce and digital marketing. This post is for informational purposes only and does not constitute legal advice.