While INFORM and SHOP SAFE seem similar they both are very different pieces of legislation and, most importantly, have conflicting disclosure and verification requirements for sellers.  The INFORM Consumers Act creates a reasonable standard for determining which small sellers should be subject to the law via the creation of a defined “high volume seller.” Without these important changes, SHOP SAFE will create conflicting sets of requirements for marketplaces and honest sellers that would reduce competition, harm consumers and raise prices for goods sold online.  

INFORM is the product of negotiated compromise among all stakeholders, whereas SHOP SAFE is a one-sided bill designed to help the largest global brand holders stifle competition under a false pretense of protecting “health and safety.” Additionally, here are five more reasons why SHOP SAFE should not become law:

  1. There are serious privacy concerns. In addition to the costs and risks the legislation levies on small businesses, SHOP SAFE requires millions of Americans, including casual sellers of used goods, to upload their personal information including government issued IDs to engage online. This raises raising serious privacy concerns, forcing Americans to choose between protecting their identity and making a living. 
  2. It creates pre-screening requirements that don’t work for used, handmade or custom items: The bill treats casual sellers of used goods and local artisans the same as global manufacturers. Overtly punitive requirements like a “three strikes” policy may interfere with legitimate artistic self-expression where allegations are not always clear or appropriate. Vague pre-screening requirements for items marketplaces never physically possess or handle will not work without requiring brands to share information and work in “good faith” with marketplaces.  The direct result would be censorship of our most creative makers and the repression of their businesses and livelihoods.
  3. The bill will punish honest small sellers, limiting consumer choice and raising prices: While consumer protection and safety is a goal we all share, we are concerned that the SHOP SAFE Act, as currently drafted, misses the mark on protecting consumers, and instead will punish small businesses, stifle competition, limit artistic expression and cause economic disruption at a time when consumers need certainty more than ever.
  4. This will lead to fewer marketplaces and limit consumer choice: Many small businesses and individual sellers will be targeted by some of the best resourced legal teams in the world, resulting in litigation, and ultimately less competition online and fewer choices for consumers.
  5. The legislative process was flawed: Unlike other pieces of legislation that are committed to protecting consumers from the risk of unsafe counterfeits, SHOP SAFE has been rushed through a legislative process that has not adequately addressed the many concerns that have been raised by the practitioners of the online community responsible for implementing the bill.

The PASS Coalition is not alone in opposition. A group of 38 civil society and industry organizations have raised significant policy and process concerns about SHOP SAFE. Several leading intellectual property academics have said SHOP SAFE represents a massive unvetted policy change “where it likely hurts every stakeholder and benefits none of them.” Public interest groups across the ideological spectrum have also raised issues with SHOP SAFE including Public Knowledge, the Cato Institute and Electronic Frontier Foundation.
 
Organizations Opposed
PASS Coalition
TechNet
CCIA
Center for Data Innovation
Center for Democracy and TEchnology
Chamber of Progress
Copia Institute
Creative Commons
Electronic Frontier Foundation
Electronic Transactions Association
Engine
IP Justice
National Association for the Self EMployed
NetChoice
Organization for Transformative Works
Public Knowledge
R Street Institute
RE:Create
Small Business and Entrepreneurship Council
Software & Information Industry Association
TechFreedom
TechNYC
Cato Institute

News Articles of interest
 
Reason- The SHOP SAFE Act Would Entrench Amazon’s Dominance
Eric Goldman- The SHOP SAFE Act is a Terrible Bill that will Eliminate Online Marketplaces
The Verge- Takedown Notices Are Threatening Online Thrift SHops- Just as Business is Exploding
Anonyome Labs- SHOP SAFE Act, if Passed, Presents Major Privacy Risk, says EFF
Public Knowledge- SHOP SAFE Act: The Trademark Timebomb Masquerading as Consumer Protection
EFF- SHOP SAFE Will Stomp Out Sales of Used and Homemade Goods
Entrepreneur- “Shop Safe” Provision in the America Competes Act Puts Online Sellers in Danger
Protocol- The ecommerce killer lurking in the Competes Act
Center for Data Innovation- The SHOP SAFE Act Would Undermine E-Commerce Without Protecting Consumers
CDT- CDT Joins Coalition Urging Removal of SHOP SAFE Act from Consideration from USICA
Cato Institute- SHOP SAFE Spoils America COMPETES
NetChoice: SHOP SAFE Threatens to upend America’s competitive edge
Foundation for Economic Education- The “SHOP SAFE Act” is a Perfect Example of How the Government Rigs the Market
Etsy- Shop Safe Threatens American Small Business
Mercari- How the SHOP SAFE Act could affect you and what we’re doing about it
IP Justice- SHOP SAFE: Ill-COnsidered Counterfeiting Bill Misses Mark
Chamber of Progress- The SHOP SAFE Act Would Hurt These 10 Small Online Sellers - But Help Louis Vuitton
Digital Liberty- The SHOP SAFE Act Jeopardizes Privacy
Real Clear Policy- The SHOP SAFE Act Would Crush Small Businesses, Prop Up Big Foreign Brands
https://townhall.com/columnists/mattmackowiak/2022/05/24/shop-safe-act-endangers-us-competitiveness-n2607718