INFORM Consumers Act Reintroduced to Boost Online Marketplace Transparency
The 'Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act' (INFORM Consumers Act; S. 936) has been reintroduced in the Senate. This bill, supported by large retailers like Home Depot and Walgreens, aims to increase transparency among online marketplaces by forcing high-volume sellers to disclose personal and financial information.
The INFORM Consumers Act requires online marketplaces to annually collect and disclose details such as sellers' government-issued IDs, tax IDs, bank account information, and contact information. High-volume sellers, defined as those with over 200 transactions totaling more than $5,000 annually, are targeted. Additionally, online marketplaces must reveal sellers' names, addresses, phone numbers, emails, and how they acquire goods.
Supporters argue this will combat fraud and protect consumers. However, critics contend it could raise compliance costs for online retailers, giving traditional retailers an advantage. A provision in the bill even allows for sellers to be suspended if they can't gather required materials within 24 hours. The bill's sponsors, citing support from large retail interests, believe it will increase transparency and fairness in online marketplaces.
The INFORM Consumers Act, reintroduced on March 23, 2021, seeks to enhance transparency among high-volume online sellers. Backed by large retailers, the bill's impact on the e-commerce landscape remains a topic of debate. If enacted, it could significantly change how online marketplaces operate and interact with their sellers.
