Amazon sellers need to verify Amazon account information to comply with the INFORM Consumers Act by June 27, 2023 to avoid account deactivation. You may have recently received an email notification or a warning on your homepage stating “Your Account is at risk of deactivation - A critical event has occurred with your account that has caused it to be at risk of deactivation”. This is a notification that you are required to update or re-verify your account information. It is important that sellers comply and take action to resolve any Amazon Compliance issues in order to ensure an active and healthy selling account. This post will cover what the INFORM Consumers Act is, steps to resolve the INFORM Consumers Act requirements for Amazon Sellers, and implications of not resolving the requirements. If you need assistance resolving the INFORM Consumers ACT Amazon seller central, please reach out to Goat Consulting.
What is the INFORM Consumers Act?
The INFORM Consumers Act stands for Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers (INFORM Consumers) Act which was included in the fiscal year 2023 omnibus appropriations bill. This requires marketplaces (such as Amazon) to authenticate government ID, tax ID, bank account information, and contact information for sellers that have made 200 or more discrete sales in a 12-month period amounting to $5,000 or more to authenticate. The purpose of this is to provide more transparency to customers who are selling products on third-party marketplace. This will help deter online sales of counterfeit, stolen, and unsafe goods which will ultimately create a more safe shopping experience for online customers. Amazon has long been in support for the U.S. House version of the INFORM Act as protecting customers and preventing counterfeit sales has been an important initiative on the Amazon store.
How to Resolve the INFORM Consumers Act Requirements for Amazon Sellers
It is important for Amazon sellers to promptly resolve the requirements requested by Amazon prior to the June 27th, 2023 date that the INFORM Consumers Act is in place. Here is how to resolve the INFORM Consumers Act Requirements on Amazon Seller Central:
Identify if you Need to Take Action - You either received an email from Amazon, have a notification on your Seller Central homepage, a notification on your Account Health page, or your Seller Account Information page stating you need to re-verify your information. If you are an Amazon seller that has sold under 200 or more discrete sales in a 12-month period or have not sold more than $5,000, you will not be required to take action.
Navigate to the Seller Central Account Health Page - In your Seller Central account, click on the menu > Performance > Account Health to get to the Account Health Page
Verify Your Identity - Click on the “Identity” text under the INFORM Consumers Act to start your identity verification form
Wait 24 Hours - Once you have completed your Identity form, wait 24 hours and your Account Health INFORM Consumers Act page will update stating if any additional information that is required including: Phone Number, Bank Account, Business Address, and Tax ID Number.
Complete the Remaining Information Requirements - if you have additional information requirements, update that information. You know you have correctly completed the requirements when there is no longer the notification that states your account is at risk of deactivation
Implications for Not Resolving the INFORM Consumers Act Requirements on Amazon Seller Central
If you do not complete the required forms and information in a timely manner, Amazon will take action to prevent you from selling. Amazon states that if they “contact you by email with a verification request, we will share specific instructions and a timeline for response. If you do not respond within the timelines requested, we may be required by the law to withhold your payments or deactivate your selling account until you provide the information that is necessary to successfully complete verification.” It is important to resolve the verification process in a timely manner as your selling privileges can be revoked and payments can be withheld until appropriate verification happens.
Amazon INFORM Consumers Act Account Verification Conclusion
It is important that sellers take action on resolving the INFORM Consumers Act account verification prior to the June 27th, 2023 deadline. Failure to resolve this notification can lead to the removal of selling privileges and the withholding of seller funds. By maintaining appropriate records you are helping to build a more trusted marketplace and minimize counterfeit, stolen, and unsafe goods from the marketplace. If you need assistance resolving this request, please reach out through our Contact Us form:
FAQ - Frequently Asked Questions about the Amazon INFORM Consumers ACT Verification
Here are some frequently asked questions around the Amazon process of complying with the INFORM Consumers ACT:
When do I need to complete the INFORM Consumers Act account verification by?
Amazon sellers need to complete the INFORM Consumers Act account verification by June 27th, 2023 when the law goes into effect
What Information Does Amazon need for the INFORM Consumers Act account verification?
Amazon requires information around your selling identity including phone number, bank account, business address, and tax ID number.
Why is Amazon requiring Sellers to complete the INFORM Consumers Act account verification?
Amazon is requiring Sellers to complete this verification because it is a law passed by the US that requires marketplace facilitators (such as Amazon) to collect the information on the sellers in the marketplace in order to deter bad actors.
Where do I complete the Amazon INFORM Consumers Account Information ACT on Amazon Seller Central?
You can complete the INFORM Consumers ACT requirements on Seller Central by navigating to the Seller Account Information page under settings or the on the Account Health Page by clicking the required items needed.
What happens if I do not resolve the INFORM Consumers Act requirements on Amazon Seller Central?
If you do not resolve the INFORM Consumers Act requirements on Amazon Seller Central, Amazon may remove your selling privileges and withhold funds from your account.
Who is Covered by the INFORM Consumers Act?
The INFORM Consumers Act requires marketplaces collect information from sellers that have at least 200 orders and $5,000 in sales in a 12-month period.
About the Author - Reed Thompson
This post was written by Reed Thompson. Reed is the CEO of Goat Consulting and loves helping brands and manufacturers sell on Amazon. Reed understands the importance of staying compliant with Amazon policies and maintaining a health account status as it creates a better marketplace for customers, which in turn is better for sellers. If you have a question on Amazon compliance or interpreting an Amazon policy, Reed can help identify where the policy is, and provide guidance on how it is applicable for your business. If you have questions or need assistance with solving any account health or policy issues on Amazon including the INFORM Consumers Act requirements, please reach out using the Contact Us form.