But keep in mind, this is a moderated blog.
Your thoughts, ideas, and concerns are welcome, and we encourage comments. The purpose of this blog and its comments section is to inform readers about Federal Trade Commission activity, and share information to help them avoid, report, and recover from fraud, scams, and bad business practices. The FTC will be watching and expects online marketplaces to have INFORM Consumers Act measures in place by the effective date. With the June 27th effective date approaching, it’s time for online marketplaces to rev up their compliance efforts. Informing Businesses about the INFORM Consumers Act includes more about the law, with a particular focus on the responsibilities of online marketplaces. And consumers who buy from those sellers will have a place to report questionable activity. Covered sellers must promptly comply with those requests for information or risk suspension. Under the INFORM Consumers Act, online marketplaces must have more information about who’s selling on their platform. You’ll want to read the new business guide and the text of the law for details, but it boils down to this. In addition, online marketplaces must suspend high-volume third party sellers that don’t provide the required information and must offer a clear way for consumers to report suspicious conduct. What’s more, online marketplaces generally must disclose on those sellers’ product listing pages (or in order confirmation messages and account transaction histories) the seller’s name, address, and contact information. The INFORM Consumers Act puts new requirements in place for “online marketplaces” – defined as a person or business that operates a consumer-directed platform that allows third party sellers to engage in the “sale, purchase, payment, storage, shipping, or delivery of a consumer product in the United States.” Online marketplaces covered by the law must collect and verify certain financial and identifying information from “high-volume third party sellers” – defined as a person or business that meets specific sales thresholds on that platform. Don’t let another day pass without considering what the new law means for your business or your clients’ companies. Ĭongress passed the Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act – or the INFORM Consumers Act – to add more transparency to online transactions and to deter criminals from acquiring stolen, counterfeit, or unsafe items and selling them through online marketplaces.
The FTC and the states share law enforcement authority and violations could result in steep civil penalties and – in cases brought by the states – “damages, restitution, or other compensation.” Are you covered by the statute? And if you are, are you taking the necessary compliance steps? FTC staff just issued a to-the-point publication that merits your attention: Informing Businesses about the INFORM Consumers Act.
That’s the date a new law – the INFORM Consumers Act – takes effect.
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