To better inform American consumers, U.S. Sens. Bill Cassidy (R-LA) and Thom Tillis (R-NC) cosponsored bipartisan legislation that would require online marketplaces to collect, verify and disclose certain information regarding high-volume third-party sellers of consumer products.
“Criminal organizations are attempting to trick consumers into buying counterfeit and hazardous products online,” Sen. Cassidy said. “This bipartisan bill provides transparency and necessary information for consumers to distinguish between genuine retailers and frauds in the internet marketplace.”
Sen. Cassidy and Sen. Tillis on March 23 joined bill sponsor U.S. Sen. Dick Durbin (D-IL) to propose the Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act, S. 936, also known as the INFORM Consumers Act.
If enacted, S. 936 would direct online retail marketplaces that include third-party sellers of consumer products to authenticate the identity of such sellers to 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, according to a bill summary provided by Sen. Cassidy’s office.
The bill also would ensure that consumers may view basic identification and contact information for high-volume third-party sellers of consumer products on online marketplaces.
Sen. Tillis pointed out that during the last year, Americans have increasingly turned to online marketplaces to make purchases, especially the elderly.
“Unfortunately criminal actors, often from China, are taking advantage of this pandemic to sell dangerous counterfeit goods to unsuspecting Americans,” Sen. Tillis said. “I appreciate the proactive steps some companies have taken to prevent the sale of counterfeits and I am proud to work with my colleagues on both sides of the aisle to ensure safety and transparency in the online retail marketplace.”
Specifically, S. 936 would direct online marketplaces to verify high-volume third-party sellers — defined as vendors who have made 200 or more discrete sales in a 12-month period amounting to $5,000 or more — by acquiring their government ID, tax ID, bank account information, and contact information.
Such online marketplaces also would be required to supply a hotline to allow customers to report suspicious marketplace activity, among other provisions, according to the bill summary.
The bill is supported by numerous organizations and companies, including 3M, the Automotive Anti-Counterfeiting Council, the Association of Home Appliance Manufacturers, the American Apparel and Footwear Association, the Consumer Healthcare Products Council, CVS Health, The Home Depot, the International Council of Shopping Centers, Levi Strauss & Co., Lowe’s, and the National Association of Chain Drug Stores, among many others.