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In December, the Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers (INFORM Consumers) Act was signed into law by President Biden as part of the Fiscal Year (FY) 2023 omnibus appropriations bill and will take effect 180 days after its signing.
The legislation, which was supported and driven by ICSC, will combat the online sale of stolen, counterfeit and dangerous consumer products by ensuring transparency of high-volume third-party sellers in online retail marketplaces. It will direct online retail marketplaces that include third-party sellers of consumer products to verify the identity of “high-volume third-party sellers,” which will help deter the online sale of counterfeit goods by anonymous sellers and prevent organized retail crime rings from stealing items from stores to resell those items in bulk online.
High-volume third-party sellers are defined as vendors who have made 200 or more discrete sales in a 12-month period amounting to $5,000 or more. Online marketplaces will verify high-volume third-party sellers by authenticating government IDs, tax IDs, bank account information and contact information. The legislation also instructs online marketplaces to ensure that these sellers disclose to consumers basic identity and contact information. The bill’s requirements would be implemented by the U.S. Federal Trade Commission and violations would be subject to civil penalties.
In the 118th Congress, ICSC plans to advocate for the passage of the Combating Organized Retail Crime Act. Originally introduced in September 2022, this important legislation would enable the aggregation and prosecution of offenses across jurisdictional lines and redefine “facilities of interstate commerce” to include use of cellular devices and interstate highways as a criminal offense.
In addition, the measure would create a “National Organized Retail Crime Center” within the Department of Homeland Security (DHS) to provide needed coordination with federal law enforcement on activities related to ORC, establish relationships with state and local law enforcement agencies, assist with investigations and replicate information sharing with private retail companies.