Last week, U.S. Rep. Jan Schakowsky, D-Ill., and U.S. Rep. Gus Bilirakis, R-Fla., announced that the Federal Trade Commission (FTC) is ready to implement their“ Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers (INFORM Consumers) Act.”
The proposal which Schakowsky and Bilirakis championed “directs online marketplaces to verify the identity of high-volume third-party sellers of consumer products,” which, supporters insist, “will help deter organized retail crime rings who seek to sell stolen or counterfeit goods online” and “will also benefit consumers by providing them with basic identification and contact information for the high-volume third-party sellers.”
The full U.S. House approved the bill without opposition back in November and the congressman’s office offered some of the reasons as to why he championed the bill.
“Along with the rise in popularity of online marketplaces like Amazon, Facebook, and eBay, there has been an increase of stolen, counterfeit, and dangerous consumer products offered for sale online to consumers. Currently, it is relatively easy for third-party sellers to go onto an online marketplace, create an account, sell high volumes of illicit goods to unwitting consumers, and then shut down the account and disappear before facing any accountability,” Bilirakis’ office noted. “The INFORM Consumers Act would require online marketplaces to verify the identity of their high-volume third-party sellers of consumer products by obtaining and verifying information including the seller’s name, tax ID, bank account information, and contact information. The bill would also direct online marketplaces to ensure that consumers have sufficient information so they can identify and contact a high-volume third-party seller who has sold them consumer products. The online marketplace would also have to provide a way for customers to report to the marketplace suspicious marketplace activity such as the selling of stolen or counterfeit goods.”
Over in the U.S. Senate, U.S. Sen. Dick Durbin, D-Ill., championed the bill. Nine senators lined up to co-sponsor the bill, including U.S. Sens. Christopher Coons, D-Del., Chuck Grassley, R-Iowa, Amy Klobuchar, D-Minn., and Marco Rubio, R-Fla.
The U.S. Chamber of Commerce, the National Association of Manufacturers, AFL-CIO, the Fraternal Order of Police, U.S. PIRG, the National Association of Chain Drug Stores, the Toy Association, the National Association of Wholesaler-Distributers, the Coalition to Protect America’s Small Sellers and many other groups backed the proposal.
The House sponsors noted last week that the FTC “sent letters to 50 online marketplaces nationwide notifying them about their obligation to comply” with the new 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,” said Bilirakis. “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.”
“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,” said Schakowsky. “I am glad to see the FTC has already taken steps to notify marketplaces nationwide of their obligation to comply with this law. Consumers deserve to shop with the peace of mind that their products are safe and legitimate.”
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