Before June 2023, counterfeiters could hide on Amazon, eBay, and other major marketplaces with minimal accountability. They’d create fake storefronts, use burner accounts, hide behind shell companies, and disappear as soon as enforcement came knocking. Brands would take down a listing, the seller would relist under a new account, and the cycle repeated endlessly. The marketplaces knew this was happening. They just didn’t have to do much about it.
Then the INFORM Consumers Act took effect on June 27, 2023. It changed that dynamic in one crucial way: it required marketplaces to actually know who their sellers are.
That sounds obvious. But it’s revolutionary for brand protection. Because now, when Axencis or your legal team pursues a counterfeiter, you’re not chasing a ghost. You’re pursuing a verified identity: a real name, address, bank account, and tax ID that the marketplace has already confirmed. That’s enforcement power most brands have never had before.
Annual counterfeit goods sold globally
Every takedown reviewed by a person
Transactions and revenue in 12 months that make a seller subject to INFORM
Costs recovered from infringers, not a flat retainer
Last updated: September 2026
By: Alex Zaika, Axencis
What is the INFORM Consumers Act?
The INFORM Consumers Act (Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act) is a U.S. federal law codified at 15 U.S.C. Section 45f. The goal is to make it much harder for counterfeiters to hide and for marketplaces, brand owners and their enforcement agents to take down counterfeits directly.
The core idea is this: Online marketplaces have grown so large that it’s difficult to know who the sellers are. A buyer may think they’re purchasing from an established shop, but it could be anyone. Counterfeiters exploit this opacity. The INFORM Act says: no more. Marketplaces have to verify seller identity and share certain information with buyers.
Think of it like this. Before INFORM, selling counterfeits online was like wearing a perfect mask at a party. Nobody could prove who you really were. The INFORM Act ripped the mask off. Marketplaces now have to check your ID at the door, write down your real name, and make sure guests know who they’re actually talking to.
For brand owners, this matters enormously. You’re no longer chasing phantom sellers. You’re pursuing real entities with real identities that law enforcement can actually track.
How does the INFORM Act actually affect brand owners?
Most brand owners mistakenly believe that INFORM gives them new takedown rights. It doesn’t. What it does is far more practical. It provides better intelligence about who is selling counterfeit products on major platforms.
More transparency means faster enforcement. Before INFORM, when you found a counterfeit listing, you had to guess who was behind it. A takedown notice would go to “Seller12345” or “ShinyDealsInc,” which might be a shell company, a fake business, or just a random account name. With INFORM, that same seller has submitted verified bank account information, tax ID, and a real address to the marketplace. That’s a paper trail. That’s evidence. When you escalate a case from takedowns to legal enforcement, that verified identity is gold. It means your lawyers can file a lawsuit against an actual person or entity.
Network identification becomes possible. Counterfeiters often operate multiple accounts to evade detection. They create Account A, get it taken down, then immediately spin up Account B and Account C. Before INFORM, those accounts looked unconnected. Now, marketplaces have to verify seller information annually. If two accounts share the same bank account, tax ID, or phone number, that’s a direct link. Axencis can use that data to prove they’re the same operator, which transforms individual takedowns into evidence of a coordinated network. That’s the difference between “seller relisted their counterfeits” and “organized ring operating through multiple accounts.”
Suspension itself becomes a deterrent. Under INFORM, if a seller refuses to provide verified information or lies on their application, the marketplace must suspend their account. No more sales. No ability to relist. This creates a new layer of enforcement without any legal action on your part. A counterfeiter who relies on volume has to actually comply with identity verification or lose access to the platform entirely. That’s a real business consequence.
Reporting tools get stronger. INFORM requires marketplaces to provide consumers with clear ways to report suspicious products, such as a dedicated link or hotline on each high-volume seller’s listing. Brands can educate customers to use these tools. A wave of “suspicious product” reports on a counterfeit listing creates documented evidence that multiple buyers have flagged it. That documentation can support your takedown claim or even a legal case down the line.
Marketplaces face real penalties. In September 2025, the Federal Trade Commission (FTC) fined Temu $2 million for failing to disclose seller information and reporting tools, as required by the INFORM Act. That’s significant. This signals that the FTC is taking this issue seriously, and marketplaces are aware of it. A marketplace that was ignoring your takedown complaints might suddenly become more responsive when they realize non-compliance costs real money.
The bottom line: INFORM doesn’t directly protect your brand. However, it eliminates the anonymity that counterfeiters relied on. This makes every other enforcement tool, such as takedowns, civil litigation, and customs actions, much more effective.
What exactly does the INFORM Act require from marketplace sellers?
Understanding the requirements helps you spot non-compliance and use it as an advantage.
A seller becomes subject to INFORM once they hit a “high-volume” threshold: 200 or more transactions and $5,000 or more in gross revenue in any 12-month period on that marketplace. The moment they cross that line, the marketplace has 10 days to collect specific information:
- Bank account details. The actual account number where payments go.
- Tax identification. Business Tax ID or personal taxpayer ID number.
- Real contact information. For individuals: legal name, working email, working phone. For businesses: a working email and phone, plus either a government-issued ID or an official business document showing the company name and physical address.
The marketplace then has 10 days to verify this information, which means they must confirm that it is real and not falsified. Government tax documents are presumed verified automatically. After that, sellers must recertify annually that their information is current.
If a seller refuses to provide this information after being asked, the marketplace must suspend their account. No exceptions. No second chances. They can’t list or sell until they comply.
Once a seller hits $20,000 in annual revenue on that marketplace, certain information becomes public. The marketplace has to display the seller’s full name (or company name), physical address, and contact information (phone or email) on every product listing or in order confirmations. There’s a privacy exception for home-based sellers, who can provide only the state and country, along with contact information, but they can’t hide completely.
Finally, the marketplace must provide a clear reporting mechanism for customers to flag suspicious products from high-volume sellers. This is usually a “report item” button or a hotline, prominently displayed.
Why this matters for brand enforcement: If a seller claims they’re a small operation when they’re really doing $50K a month, that’s a compliance violation. If they refuse to provide verified information, that’s a red flag about their legitimacy. If they’re not disclosing their identity despite hitting the revenue threshold, the marketplace is violating INFORM, which means you can report the marketplace itself to the FTC.
How does INFORM actually help stop counterfeiting?
INFORM is not an anti-counterfeiting law. It’s a transparency law. But transparency is a counterfeiter’s enemy.
It removes the cloak of anonymity. Any seller above the volume threshold is now registered with verified identity information. Even if not all of it is public, the marketplace has it. That alone deters many criminals who don’t want to be traced.
It creates audit trails for investigation. When Axencis or your legal team investigates a counterfeiting operation, we now have verified seller information provided by the marketplace itself. We can cross-reference that against bank records, address databases, and public records. That builds an airtight evidence trail that holds up in court.
It links related operations. Sophisticated counterfeiters operate multiple accounts. The same person runs FakeStore123, FakeMart456, and ReliableGoods789 on the same marketplace or across multiple platforms. Before INFORM, those accounts looked unrelated. Now, when you see two accounts with the same bank account number, phone, or address on file, you’ve proven they’re the same operator.
It gives buyers a reporting mechanism that brands can use. The INFORM reporting tool creates documented reports from multiple consumers. A counterfeit listing with 10 “suspicious product” reports from buyers carries more weight than a single brand complaint. When you pursue enforcement, you can cite those buyer reports as independent verification that the product appears counterfeit.
It forces marketplace compliance. Marketplaces now know that failing to implement INFORM costs real money. That means they’re more likely to cooperate with brand takedown requests, more likely to suspend non-compliant sellers, and more likely to provide seller data to law enforcement when needed.
Important limitations: INFORM only covers high-volume sellers. A counterfeiter doing $3K a month in sales below the 200-transaction threshold isn’t subject to it. Also, verified seller status doesn’t guarantee product authenticity. A perfectly verified seller can still sell counterfeits. INFORM only verifies identity, not product legitimacy.
Which marketplaces does INFORM actually cover?
The Act doesn’t name specific platforms. Instead, it defines an “online marketplace” functionally. Any consumer-directed electronic platform where third-party sellers can offer new or unused goods for sale qualifies.
That obviously includes Amazon, eBay, Etsy, Walmart Marketplace, and others. But it also includes many smaller platforms. The FTC has emphasized that INFORM applies to any marketplace with high-volume third-party sellers. If you sell new goods on a platform and hit the 200/$5k threshold, INFORM applies.
The FTC’s enforcement against Temu in 2025 shows they’re monitoring even newer, trendy platforms. Temu tried to argue it was exempt. The FTC disagreed and imposed a $2 million penalty. So, if you host high-volume sellers, INFORM does apply to you.
How can brands actually use INFORM in enforcement?
This is where INFORM moves from interesting regulation to practical enforcement tool.
Use verified seller data. When building a takedown case or legal action, use the seller information the marketplace has verified. That data carries more weight than inference or circumstantial evidence. It’s official. It’s verified. It holds up.
Coordinate with buyer reports. Encourage customers to use the INFORM reporting mechanism for suspicious products. Those reports create an independent paper trail that supports your enforcement. Multiple consumer complaints about counterfeits on a single listing is powerful evidence.
Identify seller networks. Cross-reference verified seller information across accounts. If two sellers share a bank account, they’re the same operation. Use that to connect the dots and escalate from individual takedowns to network enforcement.
Escalate to legal action with confidence. When you have verified seller identity, your lawyers can file a real lawsuit against a real entity. You can pursue damages, injunctions, and asset recovery through legal enforcement.
Hold marketplaces accountable. If a marketplace isn’t implementing INFORM properly, report it to the FTC. Non-compliance is expensive for platforms. That pressure makes them more responsive to brand enforcement requests going forward.
Assess platform partners. For compliance officers evaluating marketplace partners, INFORM compliance is now a concrete criterion. A platform with strong identity verification, annual recertification, and data security is taking brand protection and legal compliance seriously.
Key takeaways
- INFORM doesn’t create new takedown rights, but it destroys seller anonymity. Counterfeiters can no longer hide behind fake accounts. Marketplaces now verify their real identity.
- Verified seller data is enforcement gold. Bank accounts, tax IDs, and addresses can be used to identify networks, link related accounts, and support legal action.
- Marketplaces face real penalties for non-compliance. The $2M Temu fine shows the FTC is serious. That makes platforms more responsive to brand enforcement.
- Multiple enforcement layers now work together. Takedowns, buyer reports, seller identity data, and marketplace accountability all reinforce each other.
- High-volume sellers are the priority. INFORM covers the operations causing the most damage. Smaller counterfeiters operating below the threshold aren’t addressed.
- Transparency is a counterfeiter’s enemy. The less anonymous they can be, the more deterred they are. INFORM removes that anonymity.
Frequently asked questions
What is the INFORM Consumers Act?
A federal law effective June 27, 2023, requiring online marketplaces to collect, verify, and disclose information about high-volume third-party sellers. It aims to increase transparency and make it harder for counterfeiters and other bad actors to hide behind anonymous accounts.
Who does INFORM apply to?
Sellers who hit high-volume thresholds on any covered marketplace: 200 or more transactions and $5,000 or more in gross revenue in any 12-month period. Marketplaces themselves must comply by collecting and verifying this information.
What information do sellers have to provide under INFORM?
Bank account details, tax ID (business or personal), legal name, working email, working phone number, and physical address (with privacy exceptions for home-based businesses).
Does INFORM give brands new takedown rights?
No, it doesn’t create a new legal cause of action. But it provides verified seller data that makes takedowns more effective and legal enforcement more powerful.
How does INFORM help fight counterfeiting?
It removes seller anonymity, creates audit trails for investigation, links related operations through shared account information, and enables buyer reports through dedicated mechanisms.
What happens if a seller doesn’t comply with INFORM?
The marketplace must suspend their account. They can’t list or sell until they provide verified information and comply with annual recertification.
Can brands report non-compliant marketplaces?
Yes. If a marketplace isn’t implementing INFORM properly, brands can report it to the FTC. Violations carry penalties up to $53,000 per violation.
Does INFORM make marketplaces liable for counterfeit goods?
No. INFORM enforces transparency and procedural obligations, not product liability. Trademark enforcement is still governed by trademark law and marketplace policies separately.
How can brands actually use INFORM in enforcement?
By using verified seller data in takedowns and legal cases, coordinating with buyer reports, identifying seller networks, and holding marketplaces accountable for non-compliance.
What was the Temu enforcement about?
In September 2025, the FTC fined Temu $2 million for failing to disclose seller information and provide reporting tools as required by INFORM. It was the first major enforcement action under the Act.
Does INFORM cover all counterfeiters?
No, only high-volume sellers above the 200/$5k threshold. Smaller operations operating below that level aren’t covered. But high-volume sellers represent the majority of counterfeit revenue, so INFORM coverage targets where the real damage happens.
Sources
- Federal Trade Commission, INFORM Consumers Act guidance and enforcement materials
- Federal Trade Commission, Temu enforcement action and penalty (September 2025)
- U.S. Code, Title 15, Section 45f (INFORM Consumers Act)
- Marketplace compliance documentation from Amazon, eBay, Etsy, and Shopify
- Industry analyses and legal commentary on INFORM implementation and brand protection implications
Strengthen Your Brand Enforcement With INFORM Intelligence
The INFORM Consumers Act has fundamentally changed how online marketplaces operate. Counterfeiters can no longer hide behind anonymity. That gives brands a new advantage – but only if you know how to use it.
About the author
Alex Zaika writes on brand protection, counterfeit enforcement, and marketplace risk for Axencis, a brand protection and IP enforcement company. For questions about enforcement strategy, get in touch.