Amazon’s Reverification Under the INFORM Consumer Act
As we gear up for the INFORM Consumer Act’s enforcement on June 27, 2023, its impact on Amazon’s reverification process is indisputable. This consumer protection law aims to bolster online transparency, ensure fairness, and hold platforms accountable for their activities.
Update June 26th: We would like to inform you that starting July 7th, 2023, Amazon will initiate the withholding of funds for sellers who have not yet provided the required information necessary to comply with the INFORM Consumers Act.
Will Amazon take this deadline seriously? Yes.
Unliked the change in September 2021 about the new insurance requirements once you cross $10K in sales in a month, that was an INTERNAL policy by Amazon, this new Act if a federal policy under the Federal Trade Commission (FTC), and the FTC is one of the last organizations you want investigating or fining your company.
The penalties for failure to comply with the Act are costly, even for a company the size of Amazon.
The Act authorizes the Federal Trade Commission (FTC) to assess penalties of $46,517 per violation (i.e., for each failure of an online marketplace to collect, verify, or disclose required information). Also, it permits state attorneys general to bring civil actions for violations of the Act.
What does this mean to you as a seller?
Don’t expect to receive several emails for a 30-day extension like you have for those who still need to get insurance (although we expect that to change in September).
The INFORM Consumer Act serves as a robust response to several burgeoning online issues: deceptive practices, counterfeit products, and unauthorized sellers. These problems are at the core of Amazon’s re-verification process, which seeks to eradicate these practices and create a safer shopping environment.
By dovetailing with the stipulations of the INFORM Consumer Act, Amazon hopes to bolster consumer confidence and provide a secure online shopping experience.
Amazon’s reverification process is a critical security feature that confirms the authenticity of its sellers and their offerings. It requires sellers to present relevant documentation that verifies their identity and substantiates the legitimacy of their operations.
This process is a shield for both buyers and sellers against fraudulent activities, reinforcing Amazon as a trustworthy and reliable online marketplace. Amazon’s re-verification process has been frustrating to many sellers who have gone through the re-verification process, only needing to start over. Here is Amazon’s explanation as to why this is happening:
“We acknowledge there have been hiccups in the Amazon reverification process and the subsequent messages relayed, which are part of the problem. We understand the inconvenience this may have caused and extend our apologies,”
Amazon stated in response to recent issues. “If you have already confirmed your re-verification was successful, rest assured, you’re in the clear. We have alerted our seller verification team about the issue, and they are working on a solution. Please stay tuned for updates and relevant information regarding this matter.”
But what happens if you don’t comply with Amazon’s request for information?
Amazon has clarified: “Should we reach out to you with a verification request, we will provide specific instructions and a timeline for response. Failure to respond within the given timeline could, due to legal requirements, lead us to withhold your payments or deactivate your selling account until we receive the necessary information for successful verification.”