Online marketplaces must send a notice to these high-volume sellers at least once a year, asking them to electronically certify their information is accurate, or otherwise update their information within 10 days. The marketplace must verify that the information collected is accurate within 10 days of receiving it. Organizations must additionally provide 1) a copy of a valid government issued identification for an individual acting on behalf of such seller that includes the individual’s name and 2) a copy of a valid government-issued record or tax document that includes the business name and physical address of the seller. Contact information: For individuals, the contact information must include name, working address, and phone number.A business tax identification number, or if the seller does not have a business tax identification number, then a taxpayer identification number.However, if the information is provided to a third party, the marketplace must ensure that it can obtain the information within three business days from that third party. Bank account information can either be provided directly to the online marketplace or to a third party contracted by the marketplace to maintain the information. A bank account number or, if the seller does not have a bank account, the name of the payee for payments issued by the online marketplace. Online marketplaces must collect the following information within 10 days of a seller being qualified as a “high-volume third party seller”: The Act requires online marketplaces to collect and verify certain information about “high-volume third party sellers,” defined as sellers who enter into 200 or more transactions and make $5,000 or more in gross revenue through the marketplace during a continuous 12-month period during the previous 24 months. What Does the INFORM Consumers Act Require?Ĭollection and Verification of Information A “third party seller” is defined as any seller other than the marketplace who sells, offers, to sell, or contracts to sell consumer products in the United States through an online marketplace platform, subject to certain exclusions. have a contractual or similar relationship with consumers governing their use of the platform.Ĭonsumer products are defined as tangible products that are distributed in commerce and are normally used for personal, family, or household purposes.are used by one or more third-party sellers for such purposes and.allow third-party sellers to sell, purchase, ship, or deliver consumer products in the United States.The Act applies to online marketplaces, defined as consumer-directed electronic platforms that: Who Does the INFORM Consumers Act Apply To? This alert summarizes the key provisions. Others may need to stand up entirely new programs. Some global online marketplaces may already have systems in place to comply with similar provisions in global laws, such as the EU Digital Services Act. 1 The Act aims to increase transparency of third-party sellers in online retail marketplaces. Starting on June 27, 2023, online marketplaces will have to comply with a new federal law called the Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act (the “INFORM Consumers Act”).
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