Understanding the INFORM Consumers Act

The INFORM Consumers Act is a United States law that came into effect on June 27, 2023. This law imposes certain obligations on online marketplaces, including the Shop app, to collect, verify, and disclose certain information about high-volume sellers. Shop app merchants can use this page to learn about the INFORM Consumers Act.

Caution

This content provides general information to merchants who sell their products through the Shop app and is for informational purposes only. You're responsible for reviewing and using this information appropriately. This content doesn't contain and isn't meant to provide legal advice.

You should consult your own legal counsel to determine how the laws in your region and the region in which you sell products might affect your business. To sell products using the Shopify platform, you must comply with the laws of the jurisdiction of your business and your customers, the Shopify Terms of Service, the Shopify Acceptable Use Policy, and any other applicable policies.

Seller criteria for INFORM Consumers Act

The INFORM Consumers Act applies to high-volume sellers who sell to customers in the United States. A high-volume seller is defined as a seller who has had 200 or more separate sales of new or unused consumer products, and 5,000 USD or more in gross revenue through an online marketplace within any continuous 12-month period during the past 24 months.

INFORM Consumers Act requirements

If you meet the criteria of a high-volume seller who sells to customers in the United States using the Shop channel, then your store must comply with the following requirements outlined by the INFORM Consumers Act:

• Collection and verification of information: Online marketplaces need to collect and verify certain information from high-volume sellers. This information includes bank account information, a working business email and phone number, and tax ID information. If there are any changes to this information, then the high-volume seller needs to update it promptly.
• Certification of information: Once per year, high-volume sellers need to certify that their information is up-to-date, or provide updated information if it has changed.
• Display of seller information: For high-volume sellers with annual gross revenues of $20,000 USD or more on an online marketplace, the seller's business name, physical address, and contact information must be displayed on product listing pages, or in order confirmation messages and account transaction histories. Store contact information must include a working phone number, email address, or direct electronic messaging. Learn how to review and update your Shop contact information.

Noncompliance

Failure to comply with the requirements of the INFORM Consumers Act can result in fines imposed by the United States government. Online marketplaces that fail to meet the obligations may face fines up up to $50,000 USD per violation. Because of these conditions, a high-volume seller's failure to provide the information or certification required by the INFORM Consumers Act may result in interrupted use of the Shop app sales channel.

Resources

For more information about the INFORM Consumers Act, refer to the following resources:

• Informing Businesses about the INFORM Consumers Act
• 15 USC 45f: Collection, verification, and disclosure of information by online marketplaces to inform consumers