What Amazon Sellers Need to Know About the INFORM Consumers Act
The INFORM Consumers Act requires Amazon to collect, verify, and disclose identity and business information from high-volume third-party sellers. Sellers who fail to comply face account suspension.
Overview
The INFORM Consumers Act is a federal law that took effect on June 27, 2023, requiring online marketplaces like Amazon to collect, verify, and disclose certain identity and business information from high-volume third-party sellers. The legislation was designed to combat the sale of stolen, counterfeit, and unsafe goods by increasing transparency around who is selling products online. For Amazon sellers, this means specific compliance obligations that, if unmet, can result in account suspension.
Key Points / What Sellers Need to Know
- Who qualifies as a high-volume seller — Under the INFORM Act, a high-volume third-party seller is defined as someone who has completed 200 or more transactions totaling $5,000 or more in gross revenue during any continuous 12-month period.
- Information you must provide — Qualifying sellers are required to supply their full legal name, physical address, working phone number, email address, government-issued ID, tax ID or EIN, and bank account details to Amazon for verification.
- Amazon must verify your data — Amazon is legally obligated to collect, verify, and in some cases publicly disclose your seller information. This is not optional for either party.
- Annual re-verification is required — Sellers must confirm that their information remains accurate at least once per year, and must promptly notify Amazon whenever any of their details change.
- Disclosure to consumers — For high-volume sellers, certain business information such as name, address, and contact details may be displayed on your seller profile page so buyers can identify who they are purchasing from.
How the INFORM Act Works on Amazon
When a seller crosses the high-volume threshold, Amazon will reach out to collect the required identity and business information. Sellers must respond within the timeframe Amazon specifies, typically 10 days for initial collection and a similar window for updates. Amazon then uses a combination of automated checks and manual review to verify that the information is accurate and consistent. If a seller's data cannot be verified, or if a seller fails to respond to verification requests, Amazon is required by law to suspend that seller's ability to make sales on the platform. Once the information is properly verified, the suspension is lifted and the seller can resume operations.
Analysis & Recommendations
Why This Matters
The INFORM Act can directly impact a seller's ability to operate on Amazon. Failing to provide or update required business information triggers mandatory account suspension, making compliance essential for uninterrupted sales.
Key Takeaways
- High-volume sellers (200+ transactions or $5,000+ in 12 months) must provide verified identity and business information to Amazon
- Amazon is legally required to suspend sellers who fail to comply with verification requests
- Sellers must update their information whenever it changes and confirm accuracy at least once per year
- Proactively keeping Seller Central account details current prevents unnecessary suspensions
Recommended Actions
- →Review and update your business information in Seller Central to ensure all details — legal name, address, phone, tax ID, and bank info — are accurate and current
- →Set a calendar reminder to respond promptly to Amazon's annual INFORM Act re-verification requests
- →Monitor your Seller Central notifications regularly so verification requests don't go unanswered
Comments
Join the discussion
Log in or create an account to share your thoughts on this update.
No comments yet. Be the first to share your thoughts!