Protecting Customers and Sellers: Amazon's Response to the INFORM Consumers Act

Key Points: 

  • The INFORM Consumers Act is a new U.S. law effective from June 27, requiring online retailers to disclose information about high-volume third-party sellers.
  • Amazon supported the INFORM Consumers Act to establish a national standard and avoid state-level regulations.
  • Amazon assists sellers in meeting compliance obligations by providing resources, instructions, and dedicated support.
  • Amazon has been transparent about seller contact information since 2020 and offers a managed messaging service for direct communication.
  • Amazon's verification processes and machine learning-based detection have significantly reduced attempts by bad actors to create new selling accounts.

Deep Insights: 

As of June 27, a new U.S. law, the INFORM Consumers Act, requires online retailers to disclose identifying information about high-volume third-party sellers. Amazon, a strong supporter of this legislation, believes that having a national standard is crucial to protect consumers and small businesses in the e-commerce industry. By advocating for the INFORM Consumers Act, Amazon aims to create a consistent and trustworthy shopping experience for its customers and selling partners.

Amazon has been actively assisting its selling partners to ensure compliance with the new law. They have been in regular communication, providing instructions and resources, and have dedicated a team to help sellers navigate the verification process. This support helps sellers understand the requirements and fulfill their obligations under the INFORM Consumers Act. Amazon's commitment to working closely with sellers demonstrates its commitment to fairness and transparency in the online marketplace.

In anticipation of the INFORM Consumers Act, Amazon has already taken steps to increase transparency. Since 2020, they have been publishing seller contact information, allowing customers to view the business details of independent sellers. Additionally, Amazon offers a managed messaging service that enables direct communication between buyers and sellers while protecting against fraud and abuse. These measures prioritize customer satisfaction and contribute to maintaining a secure and trustworthy shopping environment.

Amazon's efforts to combat fraudulent activity extend beyond the requirements of the INFORM Consumers Act. Through robust verification processes and advancements in machine learning-based detection, they have significantly reduced the number of attempted fraudulent accounts. The decline from 6 million attempts in 2020 to 800,000 in 2022 showcases Amazon's commitment to customer and seller trust. By continuously combating fraud and ensuring store integrity, Amazon is dedicated to providing a safe and trusted e-commerce experience for consumers and selling partners.

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