Legislation backed by the Senate gains support among merchants as they join forces to combat the sale of counterfeit items via online marketplaces.
In the ever-evolving landscape of e-commerce, the battle against counterfeit and stolen goods has become a pressing concern for consumers and legitimate businesses alike. Enter the INFORM Consumers Act, a federal bill that aims to increase transparency and accountability in online sales, particularly on marketplaces like Amazon.
The INFORM Consumers Act, reintroduced in Congress in early 2025, is designed to curtail the sale of fake and stolen goods by requiring platforms to verify the identity of high-volume third-party sellers. If enacted, this law would allow shoppers to see such sellers' basic identification and contact information, empowering consumers to make informed decisions and reducing the risk of fraudulent purchases.
This bill, sponsored by Senators Dick Durbin (D-Illinois) and Bill Cassidy (R-Louisiana), has garnered bipartisan support, reflecting a shared commitment to consumer protection and the fight against organized retail crime rings. Notable cosponsors include Chuck Grassley (R-Iowa), Mazie Hirono (D-Hawaii), Chris Coons (D-Delaware), and Thom Tillis (R-North Carolina).
Prominent retail and brand protection groups have historically supported the INFORM Consumers Act. These include the National Retail Federation (NRF), the Retail Industry Leaders Association (RILA), and various brand owners and rights holders from sectors like luxury goods, electronics, and apparel. These organizations view the act as a necessary step to hold online marketplaces accountable and protect consumers from fraudulent products.
The issue of counterfeit goods on platforms like Amazon has been a topic of discussion in Congress and at recent congressional hearings, with lawmakers pressing for more transparency around sellers. Walmart, which is expanding its own third-party marketplace, has also voiced its support for the INFORM Consumers Act, believing it would increase transparency and accountability on online marketplaces.
Amazon, too, has acknowledged the issue and made efforts to combat counterfeits, such as announcing a "counterfeit crimes unit" last year and taking sellers to court, sometimes in conjunction with affected brands. However, the e-commerce giant has not yet responded to requests for comment on the current developments regarding the INFORM Consumers Act.
As the INFORM Consumers Act makes its way through the legislative process, it remains to be seen whether it will become law and bring about a new era of transparency and consumer protection in online sales. For the most current status of the bill and its supporters, reviewing congressional records or statements from retail coalitions would be recommended.
[1] Consumer Reports: "Online Shopping: Protecting Yourself from Counterfeit Goods" (2023) [3] The New York Times: "The Fight Against Counterfeit Goods on Amazon and Other Platforms" (2024)
- The INFORM Consumers Act, aimed at increasing transparency in online sales, requires platforms like Amazon to verify the identity of high-volume third-party sellers, allowing consumers to see their basic identification and contact information.
- Prominent business groups, such as the National Retail Federation (NRF), Retail Industry Leaders Association (RILA), and luxury goods, electronics, and apparel brands, support the INFORM Consumers Act as a necessary step to hold online marketplaces accountable and protect consumers.
- The act, sponsored by Senators Durbin, Cassidy, Grassley, Hirono, Coons, and Tillis, has gained bipartisan support in recognition of its role in consumer protection and the fight against organized retail crime rings.
- Lawmakers have been pressing for more transparency around sellers in Congress, and Walmart, expanding its own third-party marketplace, supports the INFORM Consumers Act, believing it would increase transparency and accountability on online marketplaces.
- Amazon, while acknowledging the issue of counterfeit goods on its platform, has yet to respond to requests for comment on the current developments regarding the INFORM Consumers Act.
- As the INFORM Consumers Act navigates the legislative process, its upcoming status can be monitored through congressional records or statements from retail coalitions, such as Consumer Reports and The New York Times.
