I 

116TH CONGRESS 

2D SESSION H. R. 7756 

To require online marketplaces to verify and disclose certain information 

regarding high-volume third-party sellers of consumer products to inform 

consumers. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 23, 2020 

Ms. SCHAKOWSKY (for herself and Ms. CASTOR of Florida) introduced the 

following bill; which was referred to the Committee on Energy and Commerce 

A BILL 

To require online marketplaces to verify and disclose certain 

information regarding high-volume third-party sellers of 

consumer products to inform consumers. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Integrity, Notification, 

5 and Fairness in Online Retail Marketplaces for Con6 sumers Act’’ or the ‘‘INFORM Consumers Act’’. 

7 SEC. 2. DISCLOSURE OF INFORMATION BY ONLINE MAR8 KETPLACES TO INFORM CONSUMERS. 

9 (a) VERIFICATION REQUIRED.— 


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1 (1) IN GENERAL.—Any online marketplace shall 

2 require that any high-volume third-party seller on 

3 the online marketplace provide the online market4 place with the following information within 24 hours 

5 of becoming a high-volume third-party seller: 

6 (A) Bank account information, the accu7 racy of which has been confirmed directly by 

8 the online marketplace or by a payment proc9 essor or other third-party contracted by the on10 line marketplace, or, if the high-volume third11 party seller does not have a bank account, the 

12 name of the payee for payments issued by the 

13 online marketplace to the high-volume third14 party seller. Such bank account or payee infor15 mation may be provided by the seller either— 

16 (i) to the online marketplace; or 

17 (ii) to a payment processor or other 

18 third-party contracted by the online mar19 ketplace to maintain such information, 

20 provided that the online marketplace may 

21 obtain such information on demand from 

22 such payment processor or other third23 party. 

24 (B) Contact information, including— 


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1 (i) if the high-volume third-party sell2 er is an individual, a copy of a govern3 ment-issued photo identification for the in4 dividual that includes the individual’s 

5 name and physical address; or 

6 (ii) if the high-volume third-party sell7 er is not an individual, either— 

8 (I) a copy of a government-issued 

9 photo identification for an individual 

10 acting on behalf of the high-volume 

11 third-party seller that includes the in12 dividual’s name and physical address; 

13 or 

14 (II) a copy of a government15 issued record or tax document that in16 cludes the business name and physical 

17 address of the high-volume third-party 

18 seller; and 

19 (iii) a working email address and 

20 working phone number for the high-volume 

21 third-party seller. 

22 (C) A business tax identification number 

23 or, if the high-volume third-party seller does not 

24 have a business tax identification number, a 

25 taxpayer identification number. 


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1 (D) Whether the high-volume third-party 

2 seller is exclusively advertising or offering the 

3 consumer product or products on the online 

4 marketplace, or if the high-volume third-party 

5 seller is currently advertising or offering for 

6 sale the same consumer product or products on 

7 any other internet websites other than the on8 line marketplace. 

9 (2) ONGOING VERIFICATION.— 

10 (A) The online marketplace shall verify the 

11 information provided in paragraph (1) within 3 

12 days, and shall verify within 3 days any 

13 changes to such information that is provided to 

14 the marketplace by a high-volume third-party 

15 seller. If a high-volume third-party seller pro16 vides a copy of a valid government-issued tax 

17 document, information contained within such 

18 tax document shall be presumed to be verified 

19 as of the date of issuance of such record or doc20 ument. 

21 (B) The online marketplace shall, on at 

22 least an annual basis, notify each high-volume 

23 third-party seller on the online marketplace that 

24 the seller must inform the online marketplace of 

25 any changes to the information provided by the 


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1 seller pursuant to paragraph (1) within 3 days 

2 of receiving the notification and shall instruct 

3 each high-volume third-party seller, as part of 

4 the notification, to electronically certify either 

5 that the seller’s information is unchanged or 

6 that the seller is providing changes to the infor7 mation. If the online marketplace becomes 

8 aware that a high-volume third-party seller has 

9 neither certified that the seller’s information is 

10 unchanged nor has not provided such changed 

11 information within 3 days of receiving such no12 tification, the online marketplace shall suspend 

13 the high-volume third-party seller’s participa14 tion on the marketplace until the seller has ei15 ther certified that the seller’s information is un16 changed or has provided such changed informa17 tion and the information has been verified. 

18 (b) DISCLOSURE REQUIRED.— 

19 (1) IN GENERAL.—Any online marketplace shall 

20 require a high-volume third-party seller in such on21 line marketplace to provide, and shall disclose to 

22 consumers in a conspicuous manner either on the 

23 product listing or, for information other than the 

24 seller’s full name, through a conspicuously placed 


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1 link on the product listing, the following informa2 tion: 

3 (A) Subject to paragraph (2), the identity 

4 of the high-volume third-party seller which shall 

5 include— 

6 (i) the full name of the seller; 

7 (ii) the full physical address of the 

8 seller; 

9 (iii) whether the seller also engages in 

10 the manufacturing, importing, or reselling 

11 of consumer products; and 

12 (iv) contact information for the seller, 

13 including a working phone number and 

14 working email address. Such working email 

15 address may be provided to the high-vol16 ume third-party seller by the online mar17 ketplace. 

18 (B) Any other information that the Com19 mission determines to be necessary to address 

20 circumvention or evasion of the requirements of 

21 this paragraph, provided that the additional in22 formation is limited to what is necessary to ad23 dress such circumvention or evasion. 

24 (2) EXCEPTION.— 


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1 (A) IN GENERAL.—Subject to subpara2 graph (B), upon the request of a high-volume 

3 third-party seller, an online marketplace may 

4 provide for partial disclosure of the identity in5 formation required under paragraph (1)(A) in 

6 the following situations: 

7 (i) If the high-volume third-party sell8 er demonstrates to the online marketplace 

9 that the seller does not have a business ad10 dress and only has a residential street ad11 dress, the online marketplace may direct 

12 the high-volume third-party seller to dis13 close only the country and, if applicable, 

14 the State in which the high-volume third15 party seller resides on the product listing, 

16 and may inform consumers that there is no 

17 business address available for the seller 

18 and that consumer inquiries should be sub19 mitted to the seller by phone or email. 

20 (ii) If the high-volume third-party sell21 er demonstrates to the online marketplace 

22 that the seller is a business that has a 

23 physical address for product returns, the 

24 online marketplace may direct the high-volVerDate Sep 11 2014 23:36 Aug 22, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H7756.IH H7756

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1 ume third-party seller to disclose the sell2 er’s physical address for product returns. 

3 (iii) If a high-volume third-party seller 

4 demonstrates to the online marketplace 

5 that the seller does not have a phone num6 ber other than a personal phone number, 

7 the online marketplace shall inform con8 sumers that there is no phone number 

9 available for the seller and that consumer 

10 inquiries should be submitted to the sell11 er’s email address. 

12 (B) LIMITATION ON EXCEPTION.—If an 

13 online marketplace becomes aware that a high14 volume third-party seller has made a false rep15 resentation to the online marketplace in order 

16 to justify the provision of a partial disclosure 

17 under subparagraph (A) or that a high-volume 

18 third-party seller who has requested and re19 ceived a provision for a partial disclosure under 

20 subparagraph (A) has not provided responsive 

21 answers within a reasonable timeframe to con22 sumer inquiries submitted to the seller by phone 

23 or email address, the online marketplace shall 

24 withdraw its provision for partial disclosure and 

25 require the full disclosure of the high-volume 


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1 third-party seller’s identity information required 

2 under paragraph (1)(A) upon 3 business days’ 

3 notice to the high-volume third-party seller. 

4 (3) REPORTING MECHANISM.—An online mar5 ketplace shall disclose to consumers, in a con6 spicuous manner on the product listing of any high7 volume third-party seller, a reporting mechanism 

8 that allows for electronic and telephonic reporting of 

9 suspicious marketplace activity to the online market10 place and a message encouraging individuals seeking 

11 goods for purchase to report suspicious activity to 

12 the online marketplace. 

13 (c) FULFILLMENT OR SHIPMENT BY DIFFERENT

14 PARTY THAN SELLER.—In addition to the requirements 

15 of subsection (b), an online marketplace that warehouses, 

16 distributes, or otherwise fulfills a consumer product order 

17 shall disclose to the consumer the identification of any 

18 high-volume third-party seller supplying the consumer 

19 product if different than the seller listed on the product 

20 listing page. 

21 (d) ENFORCEMENT.— 

22 (1) UNFAIR AND DECEPTIVE ACTS OR PRAC23 TICES.—A violation of subsection (a), (b), or (c) 

24 shall be treated as a violation of a rule defining an 

25 unfair or deceptive act or practice prescribed under 


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1 section 18(a)(1)(B) of the Federal Trade Commis2 sion Act (15 U.S.C. 57a(a)(1)(B)). 

3 (2) POWERS OF THE COMMISSION.— 

4 (A) IN GENERAL.—The Commission shall 

5 enforce this Act in the same manner, by the 

6 same means, and with the same jurisdiction, 

7 powers, and duties as though all applicable 

8 terms and provisions of the Federal Trade 

9 Commission Act (15 U.S.C. 41 et seq.) were in10 corporated into and made a part of this Act. 

11 (B) PRIVILEGES AND IMMUNITIES.—Any 

12 person that violates subsection (a), (b), or (c) 

13 shall be subject to the penalties, and entitled to 

14 the privileges and immunities, provided in the 

15 Federal Trade Commission Act (15 U.S.C. 41 

16 et seq.). 

17 (3) REGULATIONS.—The Federal Trade Com18 mission may promulgate regulations under section 

19 553 of title 5, United States Code, with respect to 

20 collecting and verifying information under this sec21 tion, provided that such regulations are limited to 

22 what is necessary to collect and verify such informa23 tion. 


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1 (4) AUTHORITY PRESERVED.—Nothing in this 

2 Act shall be construed to limit the authority of the 

3 Commission under any other provision of law. 

4 (e) DEFINITIONS.—In this Act: 

5 (1) COMMISSION.—The term ‘‘Commission’’ 

6 means the Federal Trade Commission. 

7 (2) CONSUMER PRODUCT.—The term ‘‘con8 sumer product’’ means any tangible personal prop9 erty which is distributed in commerce and which is 

10 normally used for personal, family, or household 

11 purposes (including any such property intended to 

12 be attached to or installed in any real property with13 out regard to whether it is so attached or installed). 

14 (3) HIGH-VOLUME THIRD-PARTY SELLER.—The 

15 term ‘‘high-volume third-party seller’’ means a par16 ticipant in an online marketplace who is a third17 party seller and who, in any continuous 12-month 

18 period during the previous 24 months, has entered 

19 into 200 or more discrete sales or transactions of 

20 new or unused consumer products resulting in the 

21 accumulation of an aggregate total of $5,000 or 

22 more in gross revenues. 

23 (4) ONLINE MARKETPLACE.—The term ‘‘online 

24 marketplace’’ means any electronically based or 

25 accessed platform that— 


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1 (A) includes features that allow for, facili2 tate, or enable third-party sellers to engage in 

3 the sale, purchase, payment, storage, shipping, 

4 or delivery of a consumer product in the United 

5 States; and 

6 (B) hosts one or more third-party sellers. 

7 (5) SELLER.—The term ‘‘seller’’ means a per8 son who sells, offers to sell, or contracts to sell a 

9 consumer product through an online marketplace. 

10 (6) THIRD-PARTY SELLER.— 

11 (A) IN GENERAL.—The term ‘‘third-party 

12 seller’’ means any seller, independent of an op13 erator, facilitator, or owner of an online mar14 ketplace, who sells, offers to sell, or contracts to 

15 sell a consumer product in the United States 

16 through an online marketplace. 

17 (B) EXCLUSION.—The term ‘‘third-party 

18 seller’’ does not include a seller who— 

19 (i) is a business entity that has made 

20 available to the general public the entity’s 

21 name, business address, and working con22 tact information; 

23 (ii) has an ongoing contractual rela24 tionship with the owner of the online mar25 ketplace to provide for the manufacture, 


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1 distribution, wholesaling, or fulfillment of 

2 shipments of consumer products; and 

3 (iii) has provided to the online mar4 ketplace identifying information, as de5 scribed in subsection (a), that has been 

6 verified pursuant to that subsection. 

7 (7) VERIFY.—The term ‘‘verify’’ means to con8 firm information provided to an online marketplace 

9 pursuant to this section by the use of— 

10 (A) a third-party or proprietary identity 

11 verification system that has the capability to 

12 confirm a seller’s name, email address, physical 

13 address, and phone number; or 

14 (B) a combination of two-factor authen15 tication, public records search, and the presen16 tation of a government-issued identification. 

17 SEC. 3. EFFECTIVE DATE. 

18 This Act shall take effect 180 days after the date of 

19 the enactment of this Act. 

Æ 


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