Online sellers: How the INFORM Consumers Act could impact your business

The INFORM Consumers Act took effect on June 27, 2023. The FTC has issued staff guidance for online marketplaces and now we have advice for online sellers whose businesses may be affected by the new law.

Congress passed the Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act – or the INFORM Consumers Act – to make online transactions more transparent. The law requires “online marketplaces” to collect, verify, and disclose certain information about “high-volume third party sellers.” Informing Businesses about the INFORM Consumers Act explains more about how the law defines those terms, discusses what’s required of online marketplaces, and outlines the substantial penalties the FTC and state law enforcers may seek if online marketplaces violate the law.

A new FTC publication, What Third Party Sellers Need to Know About the INFORM Consumers Act, looks at the statute from the perspective of businesses that sell via online platforms – for example, what sellers are impacted, what you can expect online platforms to require of you, and what information platforms must disclose about you to consumers. It also answers some questions you may have about the law.

Have you spotted a violation of the INFORM Consumers Act? Report it to the FTC.  We have a dedicated link where you can let us know about possible INFORM Consumers Act violations.
 

Image