Durbin, Cassidy Call On FTC To Disclose How The Senators' Inform Consumers Act Has Been Implemented, Citing Lack Of Action
Senators: “Since the INFORM Consumers Act took effect, there has been no indication that the FTC has commenced any investigations or enforcement actions under the Act”
SPRINGFIELD – U.S. Senate Democratic Whip Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee, and U.S. Senator Bill Cassidy, M.D. (R-LA) today sent a letter to the Federal Trade Commission (FTC) requesting information on the implementation and enforcement of the Senators’ Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers (INFORM Consumers) Act, which went into effect on June 27, 2023.
The legislation, which was sponsored by Durbin and Cassidy and signed into law in December 2022, combats the online sale of stolen, counterfeit, and dangerous consumer products by adding transparency and accountability to online transactions. It directs online retail marketplaces that include third-party sellers of consumer products to verify the identity of “high-volume third-party sellers,” which helps deter the online sale of counterfeit goods by anonymous sellers and prevents organized retail crime rings from stealing items from stores to resell online.
The Senators wrote, “The FTC is tasked with implementing and, along with state attorneys general, enforcing the INFORM Consumers Act. If the Act’s goals are to be fully realized, online marketplaces and high-volume third-party sellers must know that they will be held accountable for violations of the Act’s requirements. While we recognize and commend the FTC’s efforts to raise awareness of the INFORM Consumers Act and its requirements in June and August 2023, we are concerned by the apparent lack of action taken by the FTC since then.”
The Senators continued, “Since the INFORM Consumers Act took effect, there has been no indication that the FTC has commenced any investigations or enforcement actions under the Act. Federal or state prosecutors do not appear to have brought any cases against third-party sellers for engaging in illegal activity, such as stealing or counterfeiting goods and selling or attempting to sell them on online marketplaces, that was identified through the consumer reporting mechanisms that the Act requires online marketplaces to set up. The FTC also has not yet used its authority under the INFORM Consumers Act to promulgate regulations with respect to the collection, verification, or disclosure of information under the Act.”
In order to ensure that the Act is achieving its legislative purpose, the Senators request the FTC’s responses to a number of questions by September 5, 2025.
The Senators concluded, “The implementation and enforcement of the INFORM Consumers Act continues to be a priority for Congress, and we urge the FTC to use the authorities we granted to the agency under the Act.”
Full text of the letter to the FTC can be found here.
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