The United States federal INFORM Consumers Law was enacted to increase transparency in the online buying process. Effective June 27, 2023, this law directs online marketplaces to obtain and verify additional information from certain high-volume third party sellers. In addition, online marketplaces are required to disclose certain contact information for certain sellers as well.
Requirements
- According to the INFORM Consumers Law, a high-volume third party seller is anyone who completes 200 transactions and makes $5,000 or more in gross sales of “new” or “like new” items on Mercari in any continuous 12 twelve-month period during the previous 24 months.
- If a seller meets the requirements of a high-volume third party seller, we are required to collect and verify their information.
- Sellers must keep this information current and we will ask them to reconfirm their information annually, if they requalify as a high-volume seller.
- We are required to disclose certain contact information to buyers for sellers who gross $20,000 or more in aggregate annual sales.
FAQ
What is the INFORM Consumers Law?
The Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act ” or the “INFORM Consumers Act” is a U.S. law that places responsibilities on marketplaces to verify the identities of certain sellers, in order to deter criminal activity and ensure a safe and transparent buying process.
Who is affected by the INFORM Consumers law?
All online marketplaces, including Mercari, are legally required to reach out to users that meet the definition of a high-volume third party seller to obtain and verify additional information regarding your account. A high-volume third party seller is someone who makes 200 or more sales of new and like new items totaling $5,000 or more in gross sales in any continuous 12-month period during the previous 24 months.
What information is Mercari required to collect?
Once a user meets the definition of a high-volume third party seller, we are required to have the following information on file:
- Full name, and for non-individuals (i.e., businesses) a valid government ID, or a government-issued record or tax document that includes full legal name and physical address. Note: Businesses may provide a copy of a valid government-issued identification for an individual acting on behalf of such seller that includes the individual's name and physical address, and a copy of a valid government-issued record or tax document that includes the business name and physical address of such seller.
- Bank checking account number and routing number
- Tax identification number
- Social security number (SSN),
- Individual Taxpayer Identification Number (ITIN), or
- Employer Identification Number (EIN)
- Working email address
- Working telephone numberNote: Include business telephone number, if applicable
- Supplier information: If a different seller supplied the item to the buyer, you will need to provide the information of the seller that supplied the item as well.
What information will buyers see?
If a user meets the criteria of a high-volume third party seller and they reach $20,000 or more in annual revenues, we are required to provide buyers with the seller’s name or business name, physical address, and an email or phone number. This information may be displayed to the buyer on the order status page and via post purchase email. There are some important exceptions:
- If the seller’s address is a residential address, or a combination business & residence, then we will only show the state and country.
- If the seller asks us not to display their personal phone number, we will only show their email address.
How do I provide this information?
Don’t worry, we’ll reach out to high-volume sellers when it’s time to provide additional information. If you are contacted, just remember to respond quickly and keep your information current if anything changes such as your name, address, phone, email, bank account, or tax information. If you qualify as a high-volume seller, you can make various account changes from your seller dashboard on the contact info tab. We’ll also let you know if/when you need to reconfirm your information annually. If you aren’t able to update your information online, please contact the Help Center.
What if I don’t want to provide my information?
U.S. law requires all online marketplaces, including Mercari, to restrict selling activities on your account if your information is not received and verified within the allowed 10 calendar day timeframe.
What happens if I provide inaccurate information?
U.S. INFORM Consumers Law requires that you provide accurate information regarding your contact and account information related to your online selling activities. In addition, you are required to keep this information up-to-date should any of the information change. If we find that a false representation has been made, we will notify you and you will have 10 calendar days to correct the information. If the discrepancy is not resolved within the allowable 10 day timeframe, your selling activities will be suspended.
How can I check if I am getting close to becoming a high-volume third party seller?
We will notify you when you are close to reaching the high-volume seller threshold so that you can complete your information ahead of time and avoid any disruption. You can also check your gross sales by generating a sales report for the last 24 months, and filter it to only include Completed transactions. Note: Only “New” or “Like New” items are included to determine the high volume third party seller threshold. If you met the $5,000 gross sales or more plus 200 transactions or more threshold anytime within a continuous 12-month period over the last 24 months with sales of “New” or “Like New” items, you are considered a high-volume third party seller.
If you have additional questions, please contact the Help Center.
Additional resources:
How do I verify my phone number?
Why do I need to provide my ID?
Why do I need to verify my identity?
What information is used to verify my identity?