A new law, which was authored by U.S. Rep. Gus Bilirakis and U.S. Rep. Jan Schakowsky, has been adopted to provide better protections for consumers to help reduce online retail crime.
The Federal Trade Commission (FTC) sent letters to 50 online marketplaces nationwide notifying them about their obligation to comply with the new Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers (INFORM Consumers Act), according to a news release from Bilirakis’ office.
The businesses were told they must be in full compliance by June 27, 2023 or face enforcement that could result in civil penalties for violations, the release said.
The INFORM Consumers Act directs online platforms that allow for third-party sellers of consumer products to verify the identity of high-volume third-party sellers, which will help prevent organized retail crime.
The new law also ensures that consumers can verify basic identification and contact information for high-volume third-party sellers of consumer products on online marketplaces. The agency recently released a guidance for businesses to better understand their obligations under the law.
“Our pro-consumer legislation enacts uniform, nationwide rules to promote safety, increase transparency, and provide greater accountability for online sales. It will provide a layer of enhanced protections for consumers from stolen and counterfeit goods without adding undue burdens on small mom-and-pop businesses,” Congressman Bilirakis, said in the release. “This new law is a win-win for consumers and legitimate businesses in the online marketplace, and I am pleased to see the law will soon be fully implemented.”
Schakowsky added: “For too long, criminals have raked in profits by selling dangerous, counterfeit, and stolen products online. This ends next week when the INFORM Consumers Act, which Rep. Bilirakis and I fought so hard for, is finally enacted. This new law will require platforms to verify the identity of online sellers, which will discourage criminals and fraudsters, protect consumers and legitimate businesses, and will increase trust in the marketplace.”
Published July 26, 2023
