INFORM Consumers Act

A U.S. federal law passed in 2022 and effective June 27, 2023.

The INFORM Consumers Act requires online marketplaces to collect, verify, and disclose certain information from high-volume third-party sellers. For sellers applying to U.S. marketplaces, this information is often part of onboarding, verification, and ongoing account review.

Who it applies to

Under the law, a high-volume third-party seller is a seller on an online marketplace that, in any continuous 12-month period during the previous 24 months, has both:

✓200 or more separate sales or transactions of new or unused consumer products.
✓$5,000 or more in total gross revenue from those transactions.

Why it matters

Marketplaces are required to collect and verify seller information. If a seller does not provide the required information, or if the marketplace cannot verify it, the seller’s ability to sell may be paused.

Marketplaces must also keep seller information current. At least once each year, high-volume sellers must certify that their information is still accurate or provide updated information.

Information sellers may need to provide

Tax identification

A business tax identification number is generally required. For many U.S. businesses, this is an Employer Identification Number (EIN).

Bank account or payment information

Marketplaces must collect bank account information, or other payment information if the seller does not have a bank account.

Business contact information

Sellers may need to provide a working email address, phone number, and other contact information that allows the marketplace and customers to reach the seller.

Business identity documents

For legal entities, marketplaces may request a government record, tax document, or other documentation that includes the business name and physical address.

Physical address

Sellers should be ready to provide a physical address that matches their business records. Some marketplaces may reject addresses that cannot be verified or do not meet their seller onboarding rules.

Annual certification

High-volume sellers must keep their information up to date. Marketplaces are required to ask sellers to certify at least once a year that their information is current.

Note: Some marketplaces may ask for additional documents, such as a utility bill, phone verification, DUNS number, or other business records. These requirements can vary by marketplace and may go beyond the federal law.

Marketplace review timing

Once a high-volume third-party seller provides the required banking, contact, and tax information, the marketplace generally has 10 days to verify the information.

If information changes later, the marketplace must verify the updated information within 10 days after receiving it.

Possible account impact

If required information is missing, inaccurate, or cannot be verified, a marketplace may suspend or pause selling activity until the issue is resolved.

Sellers should review marketplace requests quickly, make sure business records are consistent, and keep copies of submitted documents.

Seller preparation checklist

✓Confirm the legal business name.
✓Confirm the business address.
✓Have tax identification information ready.
✓Use a working business email address.
✓Use a working business phone number.
✓Keep bank or payment information current.
✓Keep copies of business documents.
✓Respond quickly to marketplace verification requests.

Official FTC guidance

Review the FTC’s guidance for more detail on marketplace and seller obligations under the INFORM Consumers Act.

ftc.gov/business-guidance/resources/INFORMAct →

This summary is for general information only and is not legal advice. Sellers should review marketplace requirements and speak with legal counsel when needed.