FTC Warns Online Marketplaces About New Seller Verification Law

Online marketplaces need to follow a new law that starting June 27 requires verification of high-volume, third-party sellers of consumer goods, the FTC said Tuesday. The Integrity, Notification and Fairness in Online Retail Marketplaces for Consumers (Inform) Act defines a high-volume seller as someone who has made 200 or more sales in a 12-month period, worth $5,000 or more. Introduced by House Consumer Protection Subcommittee Chair Gus Bilirakis, R-Fla., and ranking member Jan Schakowsky, D-Ill., the Inform Act is meant to protect consumers from counterfeit, unsafe and stolen goods on platforms like Amazon and e-Bay. Senate Judiciary Committee Chairman Dick Durbin, D-Ill., introduced companion legislation with Sen. Bill Cassidy, R-La. The FTC “will enforce the act to the fullest extent possible and will collaborate with our state partners to hold online marketplaces accountable,” Consumer Protection Bureau Director Samuel Levine said Tuesday. The agency sent letters to 50 online platforms.