Online shopping is now safer thanks to the INFORM Consumers Act, which took effect on Tuesday. The act is aimed at reducing the sale of illegal and counterfeit products on e-commerce sites.
Under the new measure, e-commerce sites like Amazon, eBay, Etsy, and Poshmark are required to collect and disclose information about their high-volume third-party sellers who sell 200 items or more totaling at least $5,000 in the prior 12 months. Such sellers need to submit their government-issued ID, bank account number, working email and phone number, and taxpayer identification number.
Moreover, customers will now be able to find verified contact information for bigger sellers who make sales higher than $20,000 a year. This will help buyers interact with the seller outside the platform.
The INFORM Consumers Act comes after the bipartisan Chips and Science Act last year failed to address counterfeit products. While there was a lobbying battle on how to address such products, this new measure is a significant step in safeguarding online shoppers from counterfeit goods.
New Law Requires Online Sellers to Disclose Information
In the effort to improve consumer safety and increase transparency, a new law called the INFORM Consumers Act has been introduced. The law requires online sellers with annual sales of $20,000 or more to disclose their full name and physical address on their product-listing page, in addition to contact information. The law is expected to make it more difficult for thieves to sell stolen items online.
Consumer advocacy groups such as the U.S. PIRG Education Fund have praised the new law, calling it a “game-changer” in the fight against retail theft. The law also has support from several major e-commerce platforms, including Amazon and eBay.
The INFORM Consumers Act will go into effect in the weeks before Amazon Prime Day, the online retailer’s annual deal event that offers exclusive discounts to Prime members. While Amazon, Poshmark and Etsy have yet to comment on the new law, tech CEOs and senior executives representing the innovation economy have publicly supported it.
Overall, the INFORM Consumers Act marks a step forward in protecting consumers and promoting transparency in online retail.
The INFORM Consumers Act: A Watered-Down Version?
Recent discussions about the INFORM Consumers Act, intended to protect consumers from counterfeit or stolen items sold online, have sparked a debate about its effectiveness. While some argue that the legislation falls short in terms of accountability, others claim it is a necessary step in curbing the online sale of harmful products.
Critics of the bill argue that online platforms are not held liable for damages incurred when third-party sellers peddle counterfeit goods or when the platforms fail to implement certain best practices. The SHOP SAFE Act, a more rigorous piece of legislation that would have imposed greater regulation, was not passed by Congress.
Despite criticism, the INFORM Consumers Act has garnered support from companies like Amazon and other online marketplaces. Many see it as a compromise between no regulations and stricter legislation.
To avoid purchasing counterfeit or stolen items online, it’s important to lookout for low prices, misspellings or mislabeling, and low-quality photos on product pages. Additionally, it’s best to steer clear of medicine bought over the internet which may be of poor quality or even dangerous.
In recent years, many online marketplaces have failed to protect consumers from fraudulent vendors. The INFORM Consumers Act aims to address this issue. Opposed only by “thieves,” according to Murray, those looking to keep their information safe should keep an eye on future developments involving the INFORM Consumers Act.
