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Starting on June 27, 2023, online marketplaces (e.g., Newegg) covered by the INFORM Consumers Act must collect and verify information on a large number of third-party sellers of consumer goods. information and disclose “high-volume sellers” 1 information (e.g., sellers’ names and contact information) to consumers.
Impacted Platforms: Newegg.com and Neweggbusiness.com
CONGRESS.GOV INFORM Consumers Act
Collecting High-Volume Sellers Data
According to this Act, the main compliance requirement of online marketplaces is to collect, verify and disclose seller’s information (e.g., sellers’ names and contact information) to consumers. In order to fulfill this requirement in a timely manner, marketplaces need to establish a monitoring system.
Within ten days of a seller being identified as a “high volume seller” 1, the online marketplace must collect the sellers:
- Banking Information – The payment account number or payee name issued by the marketplace to the seller
- Contact Information – For individual sellers, their name, and for non-individuals, either a valid government-issued ID representing the business or a valid government-issued record or tax document with the name and residential address of the business
- Tax ID – Business tax or taxpayer identification number
- and a valid email and phone number
Online marketplaces must contact high-volume sellers at least annually to see if they need to update the required information. If a seller does not disclose the required information within ten days, the online marketplace must suspend the seller’s sale until it is completed.
Review & Update Seller Account Information
On Newegg Seller Portal, you can review and update your business & tax information, Refer to the links below to ensure that you are up-to-date.
1 High volume seller, a third-party person or entity that “has gross receipts of $5,000 or more in 200 or more separate sales or transactions of new or unused consumer goods in any 12 consecutive months during the preceding 24 months”.