Amazon Warns Sellers About Not Complying With the INFORM Consumers Act by June 27

The INFORM Consumers Act will take effect in the U.S. on June 27, 2023, and marketplaces are scrambling to obtain missing information from high-volume third-party sellers.

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While some sellers have heard about the Act, let’s briefly explain the INFORM Consumer Act and then discuss what Amazon is doing to ensure sellers comply.

The Consolidated Appropriations Act of 2023, a comprehensive bill governing federal government spending for the upcoming year, included an important addition known as the Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act aka the INFORM Consumers Act.

This Act was signed into law on December 29, 2022, with its primary focus being on online marketplaces, which encompass ecommerce platforms facilitating consumer-oriented transactions involving the sale, purchase, payment, storage, shipping, or delivery of products by third-party sellers.

Under the INFORM Consumers Act, online marketplaces are required to gather, verify, and disclose specific identification information pertaining to “high-volume third-party sellers.”

These sellers are defined as those who have conducted over 200 transactions and generated revenues exceeding $5,000 within a 12-month period.

The enforcement of the Act falls under the responsibility of the Federal Trade Commission (FTC), while state attorneys general possess the authority to initiate civil actions against non-compliant online marketplaces if their residents are adversely affected.

To comply with the INFORM Consumers Act, online marketplaces must establish and implement policies, procedures, and controls by June 27, 2023, and in less than a month, online marketplaces are ramping up to collect missing information.

Amazon

Earlier in May, Amazon issued a memo to sellers explaining the requirements under the INFORM Consumer Act. The company said this new law requires them to take additional steps to verify information related to high-volume sellers.

While most sellers should be okay as Amazon has been collecting the necessary information when sellers have opened stores, some sellers, probably mostly those that started many years ago, will receive instructions on providing missing information.

The company warned that it may be necessary for sellers to furnish certain information, including but not limited to their real name, a valid government-issued identification document, a business address, bank account details, a functional email address, a valid phone number, and a tax identification number.

Additionally, sellers may be asked to provide an annual confirmation that their information remains up to date.

Sellers who fail to respond to Amazon emails and provide the missing information may have their payments placed on hold and could even have their accounts deactivated after June 27.

Regardless, Amazon encourages third-party to visit their account information page in Seller Central to confirm that their information is accurate and current. This will help ensure a fast and seamless verification experience if and when Amazon sends out a confirmation email.

Seller Resources – INFORM Consumers Act

Here are some resources for Amazon sellers about the INFORM Consumers Act.

• H.R.5502: Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act or the INFORM Consumers Act
• Amazon FAQ About the INFORM Consumers Act