Amazon has announced that recent amendments were made to the INFORM Consumers Act that requires additional verification steps for high-volume third-party sellers. These sellers supposedly process more than 200 transactions and earn about $5,000 in revenues within a 12-month period. This will take effect on June 27th.

Here’s everything you need to know about the updated INFORM Consumers Act:

  1. Sellers may need to provide information such as their name, government-issued ID, business address, bank account info, email and phone number, and tax ID number. Annual certification of information is also required.
  1. If sellers have already completed verification, there is no need to resubmit unless the information has changed.
  1. However, Amazon may deactivate their selling account until verification is completed.
  1. Sellers are advised to confirm the accuracy of their business information in their Account Information in Amazon Seller Central.
  1. Sellers should also ensure that their business information is up-to-date and accurate.
  1. Once the verification process is complete, sellers will need to annually certify their information to remain in compliance with the law.

What is the INFORM Consumers Act of 2020?

Digital marketplaces in the US are protected by the INFORM Consumers Act 2020, which helps protect online sellers from unscrupulous criminals doing businesses that aim nothing but to scam consumers. This includes selling counterfeit and stolen goods.

The INFORM Act requires sellers who register to online market platforms to provide basic seller information and requirements. Passed by Congress, the law also has the power to track and penalize offenders.

Though Amazon already verifies sellers’ business information during and after registration, additional steps are now required for high-volume sellers under the updated INFORM Consumers Act.

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