Law & Order

New Law Requires Identification of Online Third-Party Sellers

By Washington, D.C., Staff

The SEMA-supported INFORM Consumers Act became law as part of the FY 2023 omnibus spending package. This bipartisan law is critical in helping law enforcement, manufacturers, retailers, and online marketplaces of all sizes work together to protect consumers from bad actors peddling counterfeit and stolen goods. The INFORM Consumers Act increases transparency and accountability by requiring sensible verification and disclosure requirements designed to disrupt the sale of illicit goods. Below are key provisions of the INFORM Consumers Act:

Requires online marketplaces to verify certain information about high-volume third-party sellers of consumer products, which is defined as sellers who make 200 or more discrete sales or transactions totaling at least $5,000 during any continuous 12-month period in the last 24 months, including the seller’s bank account number, business tax identification number or a taxpayer identification number, and contact information.

High-volume third-party sellers with $20,000 in annual gross revenue through an online marketplace will have to disclose to consumers the full name of the seller or company, business address, and contact info (current working email address, phone number, or other direct electronic messaging for the seller) after each sale.

Empowers online marketplaces to suspend high-volume third-party sellers of consumer products who do not provide the required information within 10 days of the request from the online marketplace.

For more information, contact Eric Snyder at