Senate ponders legislation aiming to curb internet sales of fake and pilfered merchandise
The INFORM Consumers Act, a federal law aimed at combating counterfeit and stolen goods in e-commerce marketplaces, is now fully in effect. This legislation requires major online marketplaces like Amazon, Walmart, and Target to verify the identity of high-volume third-party sellers before they can list products.
The Act mandates these marketplaces to collect and disclose seller information, such as names, addresses, contact details, bank account information, tax identification numbers, and government-issued IDs. Marketplaces must also establish a contact point for law enforcement and maintain records for at least two years.
This law increases the responsibility of these platforms to verify seller authenticity and collect comprehensive data. The verification process must occur before sellers can list products and be maintained continuously. Non-compliance can result in enforcement actions by the Federal Trade Commission (FTC).
The INFORM Consumers Act is a significant step towards enhancing transparency in online marketplaces, holding platforms accountable for seller information, and reducing the circulation of counterfeit and stolen products on major e-commerce sites.
Initially, Amazon opposed the INFORM Consumers Act due to its focus on online third-party marketplaces. However, the company later supported a modified House of Representatives version of the Act. Amazon, along with other large retailers like Walmart and Target, signed a letter urging Congress to add the Inform Act to the defense spending bill.
The INFORM Consumers Act is part of the Senate's defense spending authorization. The defense bill, which includes the Inform Act, is currently under debate in the Senate. The National Retail Federation, the Retail Industry Leaders Association, and other industry groups have expressed their support for the Act, stating that it is critical in helping law enforcement, manufacturers, retailers, and online marketplaces protect consumers from counterfeit and stolen goods.
Amazon had previously criticized big-box retailers like Walmart and Home Depot for pushing legislation that favors brick-and-mortar retail over online sellers. However, the company's stance on the INFORM Consumers Act indicates a shift towards supporting measures that promote consumer safety and transparency in the e-commerce industry.
In conclusion, the INFORM Consumers Act is a crucial piece of legislation that aims to curb counterfeit and stolen productions by enhancing transparency in online marketplaces. As the Act is now fully in effect, consumers can expect a safer and more authentic shopping experience on major e-commerce sites.
The INFORM Consumers Act, with its focus on advancing technology and data collection, mandates verifying the authenticity of high-volume third-party sellers on major e-commerce platforms, such as Amazon. This policy, being part of the defense spending authorization, underscores the significance of law enforcement collaboration to battle counterfeit and stolen goods in business. The Act also encourages technology implementation in verifying seller information and maintaining records.
