If you’re an Amazon seller or shopper, you might have heard about the INFORM Consumers Act. This federal law, also known as the Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act, was passed in 2023 and took effect on June 27 of that year. The law aims to protect consumers and small businesses by requiring online retailers to collect, verify, and disclose identifying information about high-volume third-party sellers.
For Amazon sellers, complying with the INFORM Consumers Act means providing multiple pieces of information about their business, such as their identity, bank account, phone number, email address, business address, and tax information. Amazon has verified some of this information during registration, but additional information may be required. Failure to comply with the law could result in steep financial penalties for online marketplaces that run afoul of the law.
As an Amazon shopper, the INFORM Consumers Act provides you with more information about sellers and a way to report questionable activity. Online marketplaces must disclose contact information about many third-party sellers of new or unused products. The law is designed to deter criminals from selling stolen, counterfeit, or unsafe items through online marketplaces.
What is the INFORM Consumers Act?
The INFORM Consumers Act is a federal law that was introduced in 2021 by the U.S. Congress to protect consumers from fraudsters and counterfeit goods. Its primary goal is to add more transparency to online transactions and to deter criminals from acquiring stolen, counterfeit, or unsafe items and selling them through online marketplaces.
The Act requires online retailers to collect, verify, and disclose identifying information about high-volume third-party sellers. It also gives shoppers information about sellers and a way to report questionable activity. Online marketplaces such as Amazon, Etsy, and eBay must comply with the INFORM Consumers Act by June 27, 2023.
The Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act, known as the INFORM Consumers Act, is designed to ensure that online transactions are safe and secure for consumers. It is particularly important for consumers who shop online frequently, as it provides them with a way to verify the identity of the seller and to report any suspicious activity.
The Act also requires online marketplaces to establish a process for verifying the identity of high-volume third-party sellers and to remove sellers who fail to comply with the verification process. This helps to ensure that only legitimate sellers are able to sell their products through online marketplaces.
Overall, the INFORM Consumers Act is an important piece of legislation that helps to protect consumers from fraud and counterfeit goods. It provides consumers with greater transparency and information about online sellers, making it easier for them to make informed decisions when shopping online.
Provisions of Amazon INFORM Consumers Act
The INFORM Consumers Act is a federal law that requires online marketplaces like Amazon to collect, verify, and disclose identifying information about high-volume third-party sellers. Here are the major provisions of the Act and how they affect online marketplaces:
- Identification of High-Volume Third-Party Sellers: The Act requires online marketplaces to collect and verify information about the identity, bank account, phone number, email address, business address, and tax information of high-volume third-party sellers. This information will be disclosed to consumers and small businesses to increase transparency and deter the sale of stolen, counterfeit, or unsafe merchandise.
- Verification of Seller Information: To comply with the Act, Amazon needs to verify multiple pieces of information about your business. Amazon has already verified some of your information during registration, but they may need to collect additional information to comply with the Act.
- Notification of Changes: The Act requires online marketplaces to notify sellers of any changes to their account information, including changes to their bank account or tax information. This will help prevent fraud and increase transparency.
- Seller Contact Information: The Act requires online marketplaces to disclose contact information about many third-party sellers of new or unused products. This will help consumers and small businesses to identify and report questionable activity.
- Penalties for Non-Compliance: The Act provides for penalties for non-compliance with the provisions of the Act. Online marketplaces that fail to comply with the Act may face civil penalties of up to $10,000 per violation.
Overall, the INFORM Consumers Act is designed to protect consumers and small businesses in online transactions. The Act imposes new requirements on online marketplaces like Amazon to ensure transparency and deter the online sale of stolen, counterfeit, or unsafe merchandise.
Compliance with Amazon INFORM Consumers Act
If you are a seller on Amazon, you need to comply with the INFORM Consumers Act, which is a federal law designed to protect consumers and small businesses. Amazon has implemented several requirements for sellers to ensure compliance with the law.
Amazon INFORM Consumers Act Requirements for Sellers
As a seller on Amazon, you are required to collect, verify, and disclose identifying information about high-volume third-party sellers. This information includes the seller’s legal name, physical address, and phone number. You must also provide a unique identifier for each product that you sell on Amazon.
To comply with the law, Amazon has implemented a new seller verification process. This process requires sellers to provide additional information about their business, such as their legal name, physical address, and tax identification number. Amazon will also verify the information provided by the seller to ensure its accuracy.
Benefits and Challenges for Sellers
The INFORM Consumers Act has several benefits for sellers on Amazon. By requiring sellers to provide identifying information, the law helps to deter criminals from selling stolen, counterfeit, or unsafe items through online marketplaces. It also gives shoppers more information about sellers and a way to report questionable activity.
However, there are also some challenges for sellers. The new seller verification process can be time-consuming and may require additional resources. Additionally, sellers may need to update their systems and processes to ensure compliance with the law.
Overall, compliance with the Amazon INFORM Consumers Act is essential for sellers who want to continue selling on Amazon. By following the requirements and providing accurate information, sellers can help to protect consumers and small businesses, while also maintaining their own reputation and credibility.
INFORM Act Verification for Amazon Sellers
As an Amazon seller, it is important to stay compliant with the INFORM Consumers Act. This federal law requires online retailers to collect, verify, and disclose identifying information about high-volume third-party sellers. Amazon has implemented a verification process to comply with this law.
To comply with INFORM, Amazon needs to verify multiple pieces of information about your business:
- Identity
- Bank account
- Phone number
- Business address
- Tax identification number
Amazon will send you a notification if you need to complete the verification process. You will need to provide the necessary information and documents to complete the verification.
It is important to note that failure to complete the verification process may result in your account being suspended or terminated. Therefore, it is recommended that you complete the verification process as soon as possible to avoid any disruptions to your business.
In summary, the INFORM Act Verification process is a necessary step for Amazon sellers to stay compliant with federal law. By providing the required information and documents, you can ensure that your account remains in good standing and avoid any potential disruptions to your business.
Consumer Protection Amazon INFORM Consumers Act
Starting June 27, 2023, the INFORM Consumers Act will make online shops like Amazon collect and share details about their big-time sellers. The idea is to keep shoppers safe from fake, stolen, or dodgy goods by making it harder for bad sellers to hide. Online stores have to let you know how to contact these sellers, helping you choose wisely or flag anything fishy.
The folks in charge, like the Federal Trade Commission and state authorities, will be keeping an eye on this and can hit rule-breakers with big fines. Amazon’s going to ask these sellers for their name, where they’re at, and how to reach them, making sure they’re on the up-and-up.
In short, this new law is a big win for people buying stuff online, making it tougher for crooks to sell bad products. It’s all about keeping shopping online safe and making sure what you buy is the real deal.
Amazon’s Response to the INFORM Consumers Act
Amazon is making moves to follow the INFORM Consumers Act, which is all about keeping shoppers and small shops safe from scams online. The company is down with the law and has started asking sellers to prove who they are by sharing stuff like their address, bank details, and tax ID. This is to make sure all the sellers on Amazon are the real deal.
They’ve also tightened up the rules on what sellers need to say about their products and are cracking down on any fake reviews. Plus, Amazon’s teaming up with the cops to go after any scams they find.
In short, Amazon is all in on making their site a safe place to buy and sell. By checking sellers more and setting new rules, they’re working hard to keep out the bad guys and look after the customers.
How to Prepare for the Amazon INFORM Consumers Act
If you are an Amazon seller, it is important to be aware of the INFORM Consumers Act and take steps to ensure compliance. Here are some actionable steps you can take to prepare for the Act:
- Verify Your Identity: As per the Act, online retailers like Amazon are required to collect and verify identifying information about high-volume third-party sellers. Make sure your identity is verified with Amazon and that you have provided accurate information.
- Provide Complete Information: You need to provide complete information about your business, including the business name and name of a business point-of-contact. You also need to provide bank account information that is working. Ensure that you have provided complete and accurate information to Amazon.
- Review Your Product Listings: The INFORM Consumers Act is designed to protect consumers from counterfeit and other illegal products that are sold online. Review your product listings to ensure that you are not selling any counterfeit or illegal products.
- Monitor Your Account: Keep an eye on your Amazon account and monitor any changes in the policies or requirements. Ensure that you are following all the rules and regulations set by Amazon.
- Stay Informed: Keep yourself updated with the latest information about the INFORM Consumers Act and any other relevant laws or regulations. Stay informed about any changes in Amazon’s policies and requirements.
By following these steps, you can prepare yourself for compliance with the INFORM Consumers Act and avoid any penalties or consequences for non-compliance.
Conclusion
The Amazon INFORM Consumers Act promises a safer, more open shopping experience on the digital marketplace. This pivotal move is designed to empower consumers, giving them peace of mind and a stronger defense against fraudulent sellers.
It’s a significant stride in the push for consumer protection. With clarity on seller identities, shoppers can trust their purchases, making informed choices the new standard on Amazon.
This Act isn’t just a legal formality; it’s a commitment to integrity in the e-commerce arena.
Frequently Asked Questions
What is the Inform Consumers Act?
The Inform Consumers Act is a federal law that requires online retailers, including Amazon, to collect, verify, and disclose identifying information about high-volume third-party sellers. The law was designed to protect consumers and small businesses from counterfeit and other illegal products that are sold online. The law requires online marketplaces to collect and verify certain information from sellers to ensure that they are legitimate and trustworthy.
When was the Inform Consumers Act Passed?
The Inform Consumers Act was passed in the United States in 2022. The law became effective on June 27, 2023, and Amazon sellers need to verify their account information to comply with the law by this date. Failure to comply with the law may result in account deactivation.
Why does Amazon ask for tax information?
Amazon asks for tax information to comply with the Inform Consumers Act. The law requires online retailers to collect and verify certain information about sellers, including tax identification numbers. This information is used to ensure that sellers are legitimate and trustworthy. Amazon may also use this information to report seller income to the Internal Revenue Service (IRS).
Does Amazon have consumer protection?
Yes, Amazon has consumer protection policies in place to protect buyers from fraudulent sellers and counterfeit products. Amazon’s A-to-z Guarantee protects buyers from unauthorized charges, defective products, and items that never arrive. Amazon also has a team of investigators who monitor the marketplace for fraudulent activity and take action against sellers who violate Amazon’s policies.
