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The INFORM Consumers Act And Its Impact On Amazon Sellers: Navigating The Changing Landscape

A woman holding a bag in front of a mirror.

The INFORM Consumers Act, enacted on December 29, 2022, has ushered in a new era for online marketplaces and third-party sellers operating on platforms such as Amazon.

The Act, aimed at promoting transparency and shielding consumers from deceitful sellers, requires online marketplaces to gather, validate, and reveal specific identification details about their high-volume sellers – those who complete more than 200 transactions or generate over $5,000 in revenues within a year.

In response to the Act, Amazon has already begun categorizing many sellers as at risk of suspension.’ Sellers are expected to verify their physical addresses promptly, and to do so can avoid account suspension. Verification procedures are being implemented by Amazon, which includes calling or sending a text to the seller’s phone number. Amazon dispatches postcards containing a unique verification code to confirm the seller’s address through the mail. These measures underscore the seriousness with which Amazon approaches the new legislative requirements.

Amazon has begun rolling out a series of more intensive seller verification checks. Sellers must now verify crucial information, such as their government ID, business address, bank information, and tax ID. In many cases, Amazon has taken verification further by requiring sellers to participate in in-person video interviews (IPI) to confirm this information​.

However, Amazon’s speed in implementing these checks has caused some turbulence among sellers. While most sellers find these checks boring, some may encounter more significant hurdles. Sellers with outdated information on Seller Central, those with virtual addresses, those using personal bank accounts for their businesses, or sellers who have opened accounts under fraudulent identities are at risk of non-compliance with the Act​.

Despite the short-term disruption, the INFORM Consumers Act is expected to benefit the Amazon selling community long-term. By weeding out fraudulent sellers, the Act aims to foster a safer and more trustworthy marketplace, helping honest sellers who play by the rules​.

At this point, many sellers may feel overwhelmed by the sudden changes and their potential consequences. This is where services like the Amazon Sellers Attorney can provide expert guidance to navigate these challenging waters.

Amazon Sellers Attorney offers professional assistance to sellers facing potential suspension due to non-compliance with the Act. Their team of experts can guide sellers through the verification process, help update outdated information, and advise on the best action to rectify any compliance issues. They understand the intricacies of Amazon’s policies and the nuances of the INFORM Consumers Act, making them a valuable ally for any seller feeling lost amidst the rapid changes.

Furthermore, Amazon Sellers Attorney can provide sellers with assistance in the case of account verification suspension. They can help sellers understand the reasons for the rest, guide them in crafting an effective Plan of Action for reinstatement, and liaise with Amazon to expedite recovery.

In addition to these immediate services, Amazon Sellers Attorney proactively assists sellers, helping them maintain ongoing compliance with Amazon’s policies and the INFORM Consumers Act. This includes advising on best practices for record-keeping, ensuring the accuracy of the information on Seller Central, and staying up-to-date with any changes to Amazon’s policies or the Act’s requirements.

Ultimately, while the INFORM Consumers Act introduces new challenges for Amazon sellers, it also presents an opportunity for the community to enhance trust and safety in the marketplace. With Amazon taking rigorous steps to verify seller identities and services like Amazon Sellers Attorney ready to assist sellers in navigating these changes, the future of online retail on Amazon looks safer and more reliable than ever.

Conclusion

The INFORM Consumers Act marks a significant turning point in online retail, driving increased transparency and accountability among sellers on platforms like Amazon. Despite the initial disruptions and challenges posed by the Act’s implementation, its long-term benefits for the online selling community are clear. Compliance with the Act is a legal necessity for Amazon sellers and a strategic move toward establishing a more trustworthy and reliable marketplace. Services like Amazon Sellers Attorney are well-equipped to provide the necessary support and guidance, ensuring sellers survive these changes and thrive in the new e-commerce landscape.

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