The Inform Act, a new law that aims to curb organized retail theft and the sale of counterfeit and harmful products on online platforms, takes effect on Tuesday as more retailers blame theft as a reason for lower profits.
The bipartisan legislation, which stands for Integrity, Notification and Fairness in Online Retail Marketplaces, passed in December as part of an omnibus spending bill, more than a year after it was introduced by Reps. Jan Schakowsky, D-Ill., and Gus Bilirakis, R-Fla.
The identity of sellers on online marketplaces is typically unknown, but the new law seeks to change that. Under the Inform Act, web vendors such as Amazon
and eBay
will be required to verify and share information on third-party sellers that do a high volume of transactions on their platforms.
"The goal of the INFORM Consumers Act is to add more transparency to online transactions and to deter criminals from acquiring stolen, counterfeit, or unsafe items and selling them through those marketplaces," the Federal Trade Commission, which will be tasked with enforcing the law along with state attorneys general, said on its website.
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