American Knife and Tool Institute

Keeping Knives in American Lives Since 1998

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Keeping Knives in American Lives Since 1998

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INFORM Consumers Act

Enhancing Transparency and Protecting Consumers

by Denise Mosteller & Jeremiah Pastrick


The online marketplace has witnessed remarkable growth, offering consumers a wide range of products and services. However, this growth has also led to deceptive marketing practices and a lack of transparency, leaving consumers vulnerable to potential harm. The INFORM Consumers Act was implemented on June 27, 2023, to address these concerns. This groundbreaking law aims to protect consumers from deceptive tactics and improve transparency in online transactions. In this article, we will explore the key provisions of the INFORM Consumers Act and how it benefits both consumers and businesses.

The INFORM Consumers Act was introduced to combat deceptive marketing tactics used by online sellers and businesses. It seeks to create a fair and trustworthy marketplace by ensuring consumers have access to accurate and reliable information.

Inform Consumers ActUnder the new law, online marketplaces are now required to provide crucial information about the sellers on their platforms, including the seller’s name, contact information, and whether they are a third-party seller or the platform itself. These disclosures enable consumers to make informed decisions and have greater confidence in their online purchases. Additionally, online marketplaces are obligated to take reasonable steps to verify the accuracy of the seller’s disclosed information, aiming to prevent fraudulent activities and protect consumers from falling victim to scams. The law mandates that sellers on online marketplaces must provide direct contact information, such as an email address or phone number, promoting transparency and accountability while facilitating prompt communication between consumers and sellers to address any concerns or queries.

The INFORM Consumers Act takes a firm stance against scams and counterfeit products. Online marketplaces are now obligated to take action against sellers engaging in fraudulent activities. This protects consumers and preserves the integrity of online marketplaces.

Customer reviews significantly impact online purchasing decisions. The INFORM Consumers Act also mandates that online marketplaces disclose any incentives provided to consumers in exchange for writing reviews. This ensures that reviews are authentic and unbiased, enhancing customer feedback’s overall transparency and trustworthiness.

The Federal Trade Commission (FTC) and the individual states are responsible for enforcing the INFORM Consumers Act. Violations can result in civil penalties, emphasizing the importance of compliance for online marketplaces. By holding businesses accountable, the FTC aims to create a safe and fair environment for consumers.

The implementation of the INFORM Consumers Act marks a significant step forward in protecting consumers and enhancing transparency in online transactions. By imposing new disclosure requirements on online marketplaces and taking measures to combat deceptive practices, the law aims to create a marketplace where consumers can make informed choices and have confidence in their purchases. As consumers, it is crucial to be aware of our rights under this law and support businesses that prioritize transparency and consumer protection.

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