Amazon INFORM Act: What Sellers Need to Know About Verification

The INFORM Consumers Act (Integrity, Notification, and Fairness in Online Retail Marketplaces) is a U.S. federal law that went into effect on June 27, 2023. It requires online marketplaces like Amazon, Walmart, and eBay to collect and verify certain information from their high-volume third-party sellers.

If you sell on Amazon, this law directly affects you. Here is what you need to know.

What Is the INFORM Act?

The INFORM Consumers Act was passed as part of the Consolidated Appropriations Act of 2023. Its primary purpose is to reduce the sale of stolen, counterfeit, and unsafe goods on online marketplaces by increasing transparency about who is selling.

Under this law, online marketplaces must:

• Collect identity and business information from "high-volume third-party sellers" (those who make 200 or more transactions totaling $5,000 or more in a 12-month period)
• Verify that information on an annual basis
• Disclose certain seller information to consumers
• Provide a way for consumers to report suspicious marketplace activity

What Information Must You Provide?

Under the INFORM Act, Amazon is required to collect the following from qualifying sellers:

1. Full legal name (or business name if you sell as a business entity)
2. Physical address — a verifiable business or residential address. P.O. boxes are generally not sufficient.
3. Government-issued ID — for individual sellers; or EIN/business registration for business entities
4. Bank account information — the name on the bank account must match the seller identity
5. Tax identification number — SSN (for individuals) or EIN (for businesses)
6. Working contact information — email address and phone number

The Verification Process

Amazon verifies this information through several methods:

• Document verification — you upload identity documents and Amazon reviews them
• Address verification — Amazon may send a postcard with a verification code to your business address, or use third-party databases to confirm your address
• Tax ID verification — cross-referenced with IRS records
• Bank account verification — micro-deposits or other banking verification methods

Amazon must re-verify your information at least once per year, or sooner if there are changes to your account.

What Happens If You Do Not Comply?

If Amazon requests verification and you do not respond:

• Amazon will send reminders with a compliance deadline
• If the deadline passes without compliance, Amazon is required by law to suspend your account
• Your listings will be deactivated and funds may be held
• Reinstatement requires completing the verification process

Address Verification Challenges

One of the most common challenges sellers face is address verification. The INFORM Act requires a verifiable physical address. Issues that frequently arise include:

• Virtual offices or mail forwarding services — these may not be accepted if they do not constitute a genuine business presence
• International sellers — sellers based outside the U.S. may need a legitimate U.S. business address if they are registered as a U.S. entity
• Address inconsistencies — the address on your seller account must match your business registration and the address on your identity documents
• Residential address privacy — some of the verified information may be disclosed to consumers under the law, which concerns sellers who operate from home

How to Prepare for INFORM Act Compliance

1. Review your Seller Central information — ensure your legal name, address, and tax ID are current and accurate
2. Keep your documents updated — expired IDs or outdated business registrations can cause verification delays
3. Use consistent information — your name and address should match across your Amazon account, bank account, tax documents, and business registration
4. Respond promptly to verification requests — Amazon provides specific deadlines. Missing them triggers mandatory suspension.
5. Plan ahead for address needs — if you are a home-based seller and prefer privacy, consider establishing a registered agent or legitimate business address
6. Monitor your email and Seller Central notifications — verification requests may come through either channel

INFORM Act and Multiple Accounts

The INFORM Act's disclosure requirements make it even more important to operate within Amazon's account policies. Since the law requires verified, transparent seller information that may be disclosed to consumers:

• Operating multiple accounts with inconsistent information may be flagged during verification
• Amazon cross-references seller data more thoroughly as part of INFORM compliance
• Maintaining a single, clean, fully verified account is the most reliable path to compliance

Getting Help with INFORM Act Verification

While INFORM Act compliance is straightforward for most sellers, certain situations may benefit from professional guidance:

• You are an international seller needing a U.S. business presence
• Your account was suspended due to INFORM Act non-compliance
• You have address verification issues that you cannot resolve through standard channels
• Your business structure has changed and you need to update your verification

See also: What Is Amazon P-4 Verification and How to Pass It