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ARTICLE · 29 AUGUST 2023

FTC Publishes INFORM Act Guidance For Third Party Sellers

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On August 18, the FTC published guidance for third party sellers detailing how the INFORM Consumers Act, which took effect on June 27, may impact their businesses.

United StatesConsumer Protection
Moorari K. Shah
Moorari K. Shah
A.J. Dhaliwal
A.J. Dhaliwal
Matt Benz
Matt Benz
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On August 18, the FTC published guidance for third party sellers detailing how the INFORM Consumers Act, which took effect on June 27, may impact their businesses. The INFORM Act provides that online marketplaces where high-volume third party sellers offer new or unused consumer products must collect, verify, and disclose certain information about those sellers. Online marketplaces must also offer a clear mechanism for consumers to report suspicious activity.

The FTC guidance explains that the gating inquiry for sellers is whether they are impacted by the INFORM Act in the first place. This analysis involves answering three questions: (1) whether the seller offers products on a platform that meets the definition of an "online marketplace"; (2) whether the seller offers merchandise that meets the definition of "consumer product"; and (3) whether the seller meets the definition of "high-volume third party seller."

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