Parks Alice

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On June 27, 2023, the INFORM Consumers Act – Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act comes into force. The law was passed by the US Congress in December 2022. According to this act, all marketplaces are required to request and verify information about large sellers who conduct business on their online resource. Such data must also be freely available to consumers.

Of course, the new procedures may be quite a hassle for marketplaces, but their purpose justifies the expenditure of additional financial and time resources. The law is designed to reduce the sale of counterfeit products online and prevent the illegal seizure of goods in stores for their wholesale resale online.

Failure to comply with the new law may result in serious fines for marketplaces. For each violation detected, i.e. allowing a seller to trade without the appropriate documents, the Federal Trade Commission can charge the platform a fine of $46,517. The law also gives attorneys general the right to file civil lawsuits for violation of the law.

Let's talk in more detail about what the law's requirements are for marketplaces, its importance for brand owners. We'll also figure out how marketplaces should operate from the moment the legislative act comes into force.

The essence of the INFORM Consumers Act
First of all, it is necessary to mention that the law clearly defines the concept of "marketplace", as well as another market participant - "large seller". A marketplace should be understood as any person or organization that on page seo service operates an electronic platform. Such a platform allows one or more third-party traders to sell, buy, pay for, store or deliver goods in the United States. On the other hand, it provides consumers with the opportunity to purchase the products sold on it.

The law challenges the common belief that a marketplace is a large international marketplace. According to the INFORM Consumers Act, a marketplace can be even a small local platform that facilitates sales from third-party sellers.



A major seller is an individual or legal entity that has made 200+ new product sales in the last 12 months (within the last two years) worth over $5,000.

The law in question defines the principles of marketplaces' activities in the area of ​​checking the legality of third-party large sellers. Its requirements:

All sellers who are defined by law as “large” are required to provide the following information to the marketplace:
seller's name;
bank account number;
taxpayer identification number;
work email address and phone number;
identification card of the seller's representative, state register or tax document indicating the name and actual address of the seller company.
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