INFORM Consumers Act Passed - Marketplace Must Verify & Publicly Publish "High Volume" Seller Info

[valueaddedresource]

I know the boards are abuzz with the news about the 1099-K threshold delay but in case you missed it, there's other seller impacting legislation news as well - the INFORM Consumers act was attached to the Omnibus Bill and passed, meaning eBay and other marketplaces will be required to verify and publicly publish contact information for "high volume" sellers ( 200 or more discrete sales in a 12-month period amounting to $5,000 or more).

There is supposed to be an exception for sellers whose address and phone number are personal/residential rather than a business, but I haven't yet seen details from eBay about how they plan to implement that so eligible sellers can opt out of having that information published.

https://www.durbin.senate.gov/newsroom/press-releases/durbin-cassidy-inform-consumers-act-included-i...

The INFORM Consumers Act directs online marketplaces to verify high-volume third-party sellers by authenticating the seller’s government ID, tax ID, bank account information, and contact information. High-volume third-party sellers are defined as vendors who have made 200 or more discrete sales in a 12-month period amounting to $5,000 or more.

The legislation instructs online marketplaces to ensure that their high-volume third-party sellers disclose to consumers basic identity and contact information.

The online marketplace will also need to supply a hotline to allow customers to report to the marketplace suspicious marketplace activity such as the posting of suspected stolen, counterfeit, or dangerous products.

The bill presents an exception for individual high-volume third-party sellers that permits them not to have their personal street address or personal phone number revealed to the public if they respond to consumers’ questions over email within a reasonable timeframe. The bill’s requirements would be implemented by the FTC and violations would be subject to civil penalties.

[toomuchstuffagain35]

But the City/Town and state are already shown on the listing as item location and the buyer does get the name & address of the seller on the order details once they purchase.

[toomuchstuffagain35]

---

@stephenmorgan wrote:

Yea I remember it had already been voted down once, but they slipped it back in.  Same way that have been trying to get the 1099 requirements lowered.  Just keep slipping it in until no one notices.

I do recall I was an Informed Consumer around 2000.  The FBI contacted this Consumer and Informed me that I may have purchased some stolen camara equipment off of eBay.  eBay was more than happy to provide my information to them.  I would like not to be contacted by the FBI again.

---

I would hope then that ebay also was happy to supply them with the name address and phone number etc of the seller you bought from?

[stephenmorgan]

---

@toomuchstuffagain35 wrote:

---

@stephenmorgan wrote:

Yea I remember it had already been voted down once, but they slipped it back in.  Same way that have been trying to get the 1099 requirements lowered.  Just keep slipping it in until no one notices.

I do recall I was an Informed Consumer around 2000.  The FBI contacted this Consumer and Informed me that I may have purchased some stolen camara equipment off of eBay.  eBay was more than happy to provide my information to them.  I would like not to be contacted by the FBI again.

---

I would hope then that ebay also was happy to supply them with the name address and phone number etc of the seller you bought from?

---

They had all the information on the seller, he was in jail.  The FBI was looking for all the stolen stuff he had sold on eBay.  To be honest the FBI did not have a clue what was purchased and neither did eBay.  This happened about 6 months after purchasing twice from this person.  They were strictly going by feedback that was exchanged.  It was a fishing expedition.  They wanted to know what was purchased and serial numbers.  Never heard anymore about it.

[wastingtime101]

---

@shipscript wrote:

These eBay resources explain what is going on when sellers are asked to provide a driver license when they've already submitted proper documentation for a 1099:

https://www.ebaymainstreet.com/news-events/new-inform-consumers-act-bill-introduced

---

Except @shipscript, I never saw eBay explain why drivers license / photo ID is required. The last update I saw from them is on the link above which says:

Highlights of the updated INFORM Act: 

• Removal of burdensome requirements: Marketplaces would no longer be required to collect sellers’ drivers license and other unnecessary information as a means of “verifying” who each seller is and how to contact them.
  • eBay already has advanced trust and safety measures in place to verify the legitimacy of sellers on its platform.  
  • Timelines and requirements for seller verification have been extended so as to not burden sellers.  
• Protects privacy of sellers: Sellers will no longer be required to disclose (next to each product listing) the full name, address, phone number, and email address of their business.
  
  • eBay already provides a transparent online shopping process where a buyer knows who is selling each product, the seller's reviews and other items listed, where an item listed for sale is located, and a means to contact the seller directly.
• Federal Standard: The new INFORM Consumers Act contains a federal preemption standard which would prevent a patchwork of confusing state laws.

Is there an update I missed that says photo IDs (license/passport) are required as part of INFORM?

I'm aware that eBay policy page (link) says license/passport may be required to verify ID to register as a seller. Not sure if that can be "blamed" on INFORM though? Seems like it may just be part of eBay's internal security policies as that info has been in the policy page for a long time.

[shipscript]

---

@wastingtime101 wrote:

---

@shipscript wrote:

These eBay resources explain what is going on when sellers are asked to provide a driver license when they've already submitted proper documentation for a 1099:

https://www.ebaymainstreet.com/news-events/new-inform-consumers-act-bill-introduced

---

Except @shipscript, I never saw eBay explain why drivers license / photo ID is required. The last update I saw from them is on the link above.

---

@wastingtime101 

The bill itself requires eBay identify the seller.

https://www.congress.gov/bill/117th-congress/house-bill/5502/text

(A) IN GENERAL.—An online marketplace shall require any high-volume third party seller on such online marketplace’s platform to provide, not later than 10 days after qualifying as a high-volume third party seller on the platform, the following information to the online marketplace:

...

(i) BANK ACCOUNT.—

(ii) CONTACT INFORMATION.—Contact information for such seller as follows:

    (I) With respect to a high-volume third party seller that is an individual, the individual’s name.

    (II) With respect to a high-volume third party seller that is not an individual, one of the following forms of contact information:

      (aa) A copy of a valid government-issued identification for an individual acting on behalf of such seller that includes the individual’s name.

      (bb) A copy of a valid government-issued record or tax document that includes the business name and physical address of such seller.

eBay is not going to disclose the bank account or driver license to the public. The only publication requirement was the name, phone/email, and address, which eBay will publish on the sale document, unless "excepted" as a home address/phone.

To your question, Ohio passed a similar law that went into effect last July and that covered "all sellers", not just Ohioans. So eBay has been making requests for identity documents since last summer and those  are already in the system.  Unfortunately, I don't know what that state law is called, so I can't compare to the new federal Law. The Federal law will not go into effect for 180 days, while more state laws become effective this January, so other state laws will take precedence until around June 20, 2023.

(g) Relationship to state laws.—No State or political subdivision of a State, or territory of the United States, may establish or continue in effect any law, regulation, rule, requirement, or standard that conflicts with the requirements of this section.

(h) Effective date.—This section shall take effect 180 days after the date of the enactment of this Act [ed. 12/22/2022].

[wastingtime101]

Thanks @shipscript, that's helpful. I just find it confusing that one of eBay's pages on INFORM says IDs will not be required (once Federal law goes into effect) which is apparently not the case - unless this is a part of the law they were trying to get rid of and failed.

I know the requirement has been in eBay's policy pages for a while and I had to provide a copy of my ID to eBay several years back when I opened another selling account.

[valueaddedresource]

---

@wastingtime101 wrote:

Thanks @shipscript, that's helpful. I just find it confusing that one of eBay's pages on INFORM says IDs will not be required (once Federal law goes into effect) which is apparently not the case - unless this is a part of the law they were trying to get rid of and failed.

I know the requirement has been in eBay's policy pages for a while and I had to provide a copy of my ID to eBay several years back when I opened another selling account.

---

@wastingtime101 that is weird because that link was from a press release from eBay Main Street on 10/6/21 which you would think would match up to this press release about the house version of the bill that was introduced 10/5/21 - but the house version definitely mentioned copy of ID at that time.

https://schakowsky.house.gov/media/press-releases/schakowsky-introduces-bill-protect-consumers-makin... 

The INFORM Consumers Act directs online marketplaces to verify high-volume third-party sellers by acquiring the seller's government ID, tax ID, bank account information, and contact information. High-volume third-party sellers are defined as vendors who have made 200 or more discrete sales in a 12-month period amounting to $5,000 or more.

I'm going to say maybe it was just a mix up or clunky/confusing wording on eBay's part?

[shipscript]

@wastingtime101 

@valueaddedresource 

In the federal bill that passed, the ID is not required of individual sellers, although I assume eBay might ask for a license if they can't nail down identity from the bank statement and social security (or if recent state laws already require the ID).

The federal bill places an identification requirement on sellers who represent a business entity (an entity that carries a different legal name).  For instance, I have a corporation. As a stakeholder in that corporation, eBay has already asked that I provide my personal contact information separately from the corporate information that was already provided. I assume they may request my driver license if I reach a threshold. But, alternatively, the federal law says I can provide government-issued corporate documents that show the physical address of my corporation (instead of my PO Box).

[pink_slippers!]

Selling out of my home, so no I do not have a Business address to give, and until a purchase is made I really don't want someone who might be unhappy that I didn't except their offer or someone whom I have blocked. Being able to see my home address and phone number. I'm not walmart I'm a one women show here that works out of my home to try and make extra money to pay my bills and maybe be able to take a vacation once in a while. 

[shipscript]

@pink_slippers!  

You will be able to request an exception. We've recently asked eBay when, and how, an exception can be requested. The process is not yet in place, but should be available by the time it is needed.

We have been advised by staff to watch the "What do I need to do now?" section on this page:

https://www.ebay.com/sellercenter/resources/inform-consumers-act

"The good news is you already provided most of this information when you signed up for eBay. If you sell over 200 new items totaling more than $5,000, we’ll send you instructions on how to upload your information in Seller Hub and My eBay if we need additional information from you.

"We’re building an exception process for you to certify that you’re eligible for an exception to sharing your full physical address under the law. This process will be available prior to the INFORM Consumers Act going into effect."

[valueaddedresource]

---

@shipscript wrote:

@pink_slippers!  

You will be able to request an exception. We've recently asked eBay when, and how, an exception can be requested. The process is not yet in place, but should be available by the time it is needed.

We have been advised by staff to watch the "What do I need to do now?" section on this page:

https://www.ebay.com/sellercenter/resources/inform-consumers-act

"The good news is you already provided most of this information when you signed up for eBay. If you sell over 200 new items totaling more than $5,000, we’ll send you instructions on how to upload your information in Seller Hub and My eBay if we need additional information from you.

"We’re building an exception process for you to certify that you’re eligible for an exception to sharing your full physical address under the law. This process will be available prior to the INFORM Consumers Act going into effect."

---

devon@ebay kyle@ebay elizabeth@ebay  - The Inform Act goes into effect June 27 , any updates on the process for sellers to request an exception to this if they qualify?

[wastingtime101]

With the exception they still share a partial address and your full name (or business name).

I assume partial address is city, state, zip - only omitting street address lines?

[valueaddedresource]

---

@wastingtime101 wrote:

With the exception they still share a partial address and your full name (or business name).

I assume partial address is city, state, zip - only omitting street address lines?

---

@wastingtime101  the legislation says for exceptions that partial address may be country and state, if applicable. I don't see any requirement for city or zip.

upon the request of a high-volume third party seller, an online marketplace may provide for partial disclosure of the identity information required under paragraph (1)(B)(i) in the following situations:

(i) If such seller certifies to the online marketplace that the seller does not have a business address and only has a residential street address, or has a combined business and residential address, the online
marketplace may—

(I) disclose only the country and, if applicable, the State in which such seller resides; and
(II) inform consumers that there is no business address available for the seller and that consumer inquiries
should be submitted to the seller by phone, email, or other means of electronic messaging provided to such seller by the online marketplace.

[wastingtime101]

Thanks, really appreciate you taking the time to look that up. The last time I read over the info was months ago and I couldn't remember the details.

[valueaddedresource]

---

@wastingtime101 wrote:

Thanks, really appreciate you taking the time to look that up. The last time I read over the info was months ago and I couldn't remember the details.

---

@wastingtime101 no problem!

Guessing with the holiday weekend we won't get a response today, but hoping eBay gives some details on how to request the exclusion soon.

This just popped back up on my radar today watching a meltdown in progress going on with Amazon requesting INFORM Act info verification and it made me think what a mess we could have one our hands here if eBay waits until the last minute to communicate with sellers about how this process is going to work.