Amazon INFORM Consumers Act: What to Know

A new federal law will go into effect on June 27, 2023, called the INFORM Consumers Act.

What is the INFORM Consumers Act?

Integrity

Notification

Fairness in

Online

Retail

Marketplaces…for Consumers Act

INFORM protects small businesses from counterfeiting and increases overall transparency within online marketplaces.

As an Amazon e-commerce seller, you may have already received banners and/or emails regarding the INFORM Consumers Act. These communications from Amazon relate to verifying specific account information.

Who does the INFORM Consumers Act impact? According to Amazon, the law applies to third-party sellers who have sold 200 or more new or unused consumer goods in a “continuous 12-month period” over the last two years, and which have a gross revenue of $5000 or more.

What exact information needs verification as a result of the INFORM Consumers Act?

Amazon will need to verify approximately six pieces of information:

1. Identity – If an individual seller, this is the name of the person authorized to act on the sellers’ behalf. If a business, this is the business name and the name of a person at the business who can be contacted.

2. Bank Account Information

3. Business Phone Number

4. Address of Business

5. Tax Identification Number (TIN)

6. Email Address

Verified vs Not Yet Verified: INFORM Consumers Act

Amazon INFORM Act. Per Amazon, if you have not provided verification of the aforementioned pieces of information, you will need to do so. Of course, it is possible that some of the account information was verified upon registration, but additional verification may be required. Check the Account Health page under Account Information to find out what has or has not been verified. We strongly suggest you handle any remaining verification as soon as possible, before the INFORM Consumers Act takes effect, so that your business does not experience a disruption.

In the event that you already verified the necessary information, you will receive a confirmation email. The Account Health page may take up to 24 hours to update. If your Account Health page has not been updated after 24 hours, you should contact Seller Support and notify Amazon. In addition, these “verification pass emails” pertain to each separate type of information, so it is possible you may get further requests to verify more information even if you have already received a “verification pass email.”

Amazon will email you with instructions regarding any outstanding verification of your information. For the most part, if your information is the same (and has not changed) you will not be asked to resubmit anything after verification has been completed.

If any information has changed, such as your original account name not matching your more newly formed LLC name, you will likely have to provide additional information.

Providing Amazon With Requested Information

Under the new INFORM Consumers Act law, Amazon may temporarily deactivate your selling account if you fail to provide the requested information by the date(s) they set. Not only this, Amazon might also withhold the money you made from recent sales.

As previously stated, your Account Health page may take 24 hours to update. If the Account Health page states you are at risk of account deactivation, but you have a verification pass email, know that you can indeed rely on the accuracy of that email. If the Account Health page has still not been updated beyond a 24 hour period, contact Seller Support.

Note on Business Type: Amazon says that the “business type” you select should be accurate. For whatever reason, you are unable to change the business type if you continue to a different page.

Green Check Mark: Information was verified. No action required.

Circle With Link: Amazon is waiting for information to verify. Or, Amazon is in the process of verifying provided information. Click on the link to find out if any information is outstanding.

Circle With Grayed Out Text: No action required. However, regularly monitor the status of the item in case it changes color, which means you will have to give Amazon information to verify.

Consult the INFORM Consumers Act Verification FAQs page on Amazon for additional information and discussion.

The details herein represent what Amazon has thus far offered sellers insofar as understanding what they are supposed to do before the INFORM Consumers Act is in effect. The above does not represent an all-encompassing view of what you may or may not encounter as an Amazon seller due to the implementation of this new law. It stands to reason that Amazon has not made every aspect of what it will require from sellers crystal clear.

If you are utterly confused, frustrated, or in any other way at a loss because of these various verification requirements, contact us at Stockman & Poropat, PLLC!!! We have utilized our comprehensive expertise in intellectual property law to rescue many clients around the world from a wide variety of issues related to e-commerce and selling on Amazon. Let us lend your business a necessary helping hand by tailoring an unmatched creative strategy for your particular situation.

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