The INFORM Consumers Act and online marketplaces: What to know

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Have you ever bought something through an online marketplace where third parties sell their products? You’re not alone. Millions of people have. But have you ever wondered who the seller was? Or where they were located? Or how you’d contact them if you had a question about a product?

There’s a new law designed to shed some light on transactions on these marketplaces. The INFORM Consumers Act is designed to deter criminals from selling stolen, counterfeit, or unsafe items through online marketplaces. It also gives shoppers information about sellers and a way to report questionable activity.

The Act says online marketplaces must disclose contact information about many third-party sellers of new or unused consumer products on their product pages or in order confirmation messages. Shoppers could use the information to learn more about a seller they’re not familiar with.

The online marketplace also must give shoppers a way to report suspicious conduct. What might a shopper consider to be suspicious activity?

• They get an item that looks to be fake or counterfeit.
• They get an item that’s different from what they ordered — maybe it doesn’t look like the picture on the product page. Or it came in a different quantity.
• They get an item that has unexpected signs of deterioration or use. Or that's expired.
• They see a seller advertising branded merchandise at unusually low prices.

Shoppers may not see this information for all third-party sellers — the law covers only “high-volume” third-party sellers that meet specific sales thresholds. To learn more about the law, which takes effect on June 27, 2023, check out Informing Businesses about the INFORM Consumers Act.

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