Back to Blog Homepage

The INFORM Consumers Act Passes, Requiring Online Marketplaces to Verify Sellers

Online marketplaces such as Amazon, eBay, and Etsy will now be required to verify the identity and contact information of “high-volume” third-party sellers, according to the recently passed INFORM Consumers Act. This legislation, which was included in the year-end omnibus spending bill, defines high-volume sellers as those who have made 200 or more sales in a 12-month period worth $5,000 or more. In addition to verifying these sellers, the Act also directs online marketplaces to provide a hotline for customers to report suspicious activity, such as the posting of stolen, counterfeit, or dangerous products.

The INFORM Consumers Act will be implemented by the Federal Trade Commission (FTC) and violations will be subject to civil penalties. It has received support from eBay and a coalition of marketplaces called Protect America’s Small Businesses (PASS), but has received mixed reactions from sellers. Some have praised the law, while others have expressed concerns about safety and the definition of “high-volume.”

The passage of this legislation aims to curb the fencing of stolen merchandise, a serious and costly problem for retail stores, and provides protections for small sellers who use online platforms to sell their products. It also avoids a patchwork of state laws that sellers must comply with in terms of collecting and remitting sales tax. We’ll be sure to keep you updated on any further developments regarding the INFORM Consumers Act in the coming year.

About the Author

Daniel Sodkiewicz (Co-founder and CTO)

Daniel is a CTO and co-founder of GeekSeller with years of experience in software development, online marketing, UX design, and e-commerce consulting. Based in Austin, TX, he is an established expert in the industry. Daniel keeps a close eye on the latest trends and news in e-commerce and regularly writes about it on this blog and LinkedIn.

Leave a Reply

Your email address will not be published. Required fields are marked *


Keep up with e-commerce news!
Subscribe to our free newsletter to stay updated on what is happening in the industry. All subscribers receive our Walmart Listing Optimization ebook for free!


Keep up with e-commerce news!

Stay updated on what is happening in the industry. Subscribe to our newsletter and receive our Walmart Listing Optimization ebook for free!