INFORM Consumers Act

Infographic: Learn about the requirements of online marketplaces to comply with the INFORM Consumers Act which is intended to protect buyers and sellers online.

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INFORM Consumers Act Targets Fraud in Online Marketplaces

The potential civil penalty

from the Federal Trade

Commission per violation

$50,120

Marketplaces have 10 days to

verify sellers once they reach

the “high-volume” threshold 10

Name of the

business or person

Address

Phone number

Email

Marketplaces must share with consumers information about

sellers that have annual gross revenue of $20,000 or more.

Disclose Seller

Information to Buyers

Bank account number

Tax ID

Address

Email and phone number

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03

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Marketplaces must collect and verify “high-volume”

third-party seller information, including:

Verify Online Sellers

Total revenue

per year

$5,000+

Transactions

per year

200+ +

“High-

volume”

seller

The INFORM Consumers Act is intended to protect buyers

and sellers online. As of June 27, 2023, online retail

marketplaces in the U.S. have to collect, verify and disclose

certain information from “high-volume” third-party sellers.

INFORM

Consumers Act

New U.S. Regulation for Online Marketplaces:

Integrity, Notification, and Fairness in Online

Retail Marketplaces for Consumers Act

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