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.