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INFORM Consumers Act

The INFORM Consumers Act is a U.S. law aimed at increasing transparency and accountability among high-volume third-party sellers on online marketplaces. Its goal is to prevent fraud and protect consumers from counterfeit, stolen, or unsafe products.

About INFORM Consumers Act

What does the INFORM Consumers Act require?

The Act requires online marketplaces like Amazon, eBay, and Etsy to collect, verify, and disclose specific information from high-volume sellers. This includes the seller’s government ID, tax ID, bank account, and contact information. Marketplaces must also provide clear ways for consumers to report suspicious activity.

Who needs to comply with the INFORM Consumers Act?

Online marketplaces that allow third-party sales are responsible for enforcing compliance. However, high-volume third-party sellers—defined as those making 200 or more sales and earning over $5,000 in a year—must provide the necessary information. Failure to comply may result in suspension or removal from the platform.

When did the INFORM Consumers Act become law?

The INFORM Consumers Act became law in the United States on June 27, 2023 , and enforcement began shortly after. It’s part of a broader effort by regulators and lawmakers to crack down on digital fraud and restore consumer trust in online platforms.

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