INFORM Consumers Act: What Amazon Sellers Need to Know

High-volume third-party eCommerce sellers are being asked to provide detailed information to Amazon and other platforms in accordance with the INFORM Consumers Act.

Online marketplaces are required to collect, verify, and disclose information from these sellers. However, many sellers understandably have questions about the process and the details they are being asked to share.

It can be disconcerting to be asked to share bank account numbers and other sensitive information, especially when you’re always on the lookout for scammers and shady competitors. In this article, we’ll explain what to expect related to the INFORM Consumers Act and the information you’ll be asked to provide if applicable. The act goes into effect on June 27, 2023.

What is the INFORM Consumers Act?

The Integrity, Notification, and Fairness in Online Retail Marketplaces, also known as the INFORM Consumers Act, was introduced in the United States Senate in March 2021. It requires online marketplaces like Amazon and Shopify to collect, verify, and disclose certain details from high-volume third-party sellers.

The act defines these sellers as those that conduct 200 or more transactions that result in total revenue of $5,000 or more over a continuous period of 12 months.

These parameters apply to many Amazon third-party sellers. Amazon recently shared that approximately 60% of all units sold through the platform are sold by small-to-medium-sized businesses.

Online marketplaces, including Amazon, are required to collect the following details about these sellers:

• Bank account numbers
• Government-issued identification
• Tax identification numbers
• Contact information (phone number and business address)

The information must be verified, and eCommerce platforms are required to certify any changes to the details annually.

Note that although Amazon may have already verified some of your information recently or when you registered your account, it may need to collect additional information to comply with the INFORM Act. Many sellers are receiving multiple requests for information in Seller Central.

Online marketplaces are also required to make sellers’ names and contact information available to consumers through the sellers’ product listings. Consumers must also have access to report any suspicious activity on the marketplace electronically and by telephone.

INFORM Act Verification for Amazon Sellers

There has been some confusion among some Amazon sellers regarding the verification process, so here’s what you need to know.

If you’ve already completed your account verification and received an email from Amazon confirming that your account has been verified, it may take up to 24 hours to appear on your Account Health page in Seller Central. If you don’t see the update after 24 hours, contact Seller Support.

You may receive additional requests from Amazon after receiving the account verification confirmation message. That’s because each email is related to a specific type of information, like your identity or bank account information. It is normal to receive requests to verify additional information.

If you haven’t started or completed the verification process or want to check your account, go to your Account Information page to confirm that all business information is both accurate and up to date.

Failure to provide the information Amazon needs for verification by the dates required may result in the temporary deactivation of your selling account as required by the INFORM Consumers Act. Amazon may also hold your disbursements as outlined in Section 3 of the Business Solutions Agreement.

If you’ve submitted your information and received a verification email from Amazon, check after 24 hours to see if it is reflected on your Account Health page. If it isn’t, contact Seller Support to resolve the issue.

You can see which information Amazon has verified and what is still outstanding by checking your Account Health or Account Information page in Seller Central. Submit the requested details as soon as possible to get your information verified before the law goes into effect on June 27, 2023, to avoid any interruptions to your ability to sell on Amazon.

Some US sellers experienced issues with the Tax Questionnaire over the past few weeks. Amazon has stated that this is due to an error. If your business is registered in the United States, Amazon has already verified your tax information and you won’t need to fill out the questionnaire again.

Seller Verification Changes and Privacy

Amazon may require sellers who are not currently covered by the INFORM Consumers Act to complete additional verification steps. You can learn more about Amazon’s seller verification processes, including requirements specific to each country, on the Global seller identity verification page in Seller Central. The Amazon Services Business Solutions Agreement has been updated to remain consistent with the new law.

Amazon has strict security measures to protect your confidential information. However, it’s wise to be cautious when sharing information such as your bank account number. INFORM requests will be sent via email, which should link to your dashboard in Seller Central.

Amazon will not ask you to email your bank account information to verify it. You will only be asked to input that information in Seller Central.

If you receive a suspicious message and you're not sure it's from Amazon, do not click on any links in the email. Amazon has information to help you identify false (spoofed) emails. If you encounter a phishing attempt, report it to Amazon.

Related reading: Your Guide to Beneficial Ownership Information Reporting

Get Seller Updates

Amazon is working with sellers to verify necessary account details to comply with the new INFORM Consumers Act. We will update this article if Amazon shares any further information about how to comply with this law. You can sign up for our newsletter to get regular updates on news and ideas for Amazon sellers.