Durbin Releases Data On How His INFORM Consumers Act Has Impacted Online Marketplaces

CHICAGO – U.S. Senate Democratic Whip Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee, today released new data on how hisIntegrity, Notification, and Fairness in Online Retail Marketplaces for Consumers (INFORM Consumers) Acthas helped clean up online marketplaces since the bill went into effect on June 27, 2023. Durbin’s staff collected data in response to aletterhe and U.S. Senator Bill Cassidy, M.D. (R-LA), the bill’s co-lead, sent to 46 companies that operate online marketplaces requesting information on the implementation and enforcement of the Senators’INFORM Consumers Actand other efforts taken by the companies to combat the sale of stolen, counterfeit, or unsafe goods on their online marketplaces.
“Since theINFORM Consumers Actwent into effect, I have continuously pressed for information on how consumers and online marketplaces have benefited from the bill,”said Durbin. “I’m pleased the bill is doing exactly what it’s intended to—to deter the online sales of stolen, counterfeit, and unsafe goods and to protect consumers. Our findings show that companies are aware of theINFORM Consumers Actrequirements and the bill has pushed them to adopt better business practices. I will continue to work closely with the FTC to ensure companies remove sellers and accounts that violate their policies, theINFORM Consumers Act, and other laws.”
Durbin’s staff obtained the following data:
The 46 companies that operate online marketplaces include 1stdibs.com, Inc., Alibris, Inc., Alibaba Group, U.S. Office, Amazon.com, Inc., Artsy, Belk Inc., bMarketplace (f/k/a Bonanza), LEGO Bricklink, Inc., Chewy, Inc., Depop, Discogs, eBay Inc., eBid Ltd., eCrater, Etsy, Inc., Express, Inc., Farfetch UK Limited, U.S. Office, Fashionphile Group, LLC, 1661, Inc., d/b/a GOAT, Houzz Inc., Kohl's Corporation, Macy's, Inc., Mercari US, Meta Platforms, Inc., Newegg, OfferUp, Inc., Oriental Trading Co., Inc., Beyond, Inc., Poshmark, The RealReal, Inc., Trendly, Inc. d/b/a Rebag, Redbubble Inc., Reverb.com, LLC, Ruby Lane, Inc., Shein Distribution Corporation, Shopify (USA) Inc., StockX Inc.,Target Corporation, Temu (WhaleCo, Inc.), ThredUp Inc., Transformco d/b/a Sears d/b/a Kmart, Urban Outfitters Inc., Vestiaire Collective, Walmart Inc., Wayfair Inc., and Zazzle Inc.
After theINFORM Consumers Acttook effect, there initially was no indication that the Federal Trade Commission (FTC) had commenced any investigations or enforcement actions under the Act. Durbin and Cassidy sent aletterto the FTC in August of 2025 requesting information on the implementation and enforcement of the bill. Shortly thereafter, on September 5, 2025, FTC and the Department of Justice (DOJ) brought the firstINFORM Consumers Actenforcement action against the online marketplace Temu, which sells heavily discounted goods shipped to consumers from China. According to the complaint, Temu violated theINFORMConsumers Actby failing to provide consumers with sufficient means to report suspicious marketplace activity and by failing to provide consumers with an adequate method to report suspicious product listings in its gamified shopping experiences, which allow shoppers to play games while browsing and purchasing products. Temu also failed to disclose required information about third-party sellers as part of its gamified product listings for its mobile website. The proposed consent decree imposes a $2 million civil penalty against Temu.
TheINFORM Consumers Actwas signed into law in December 2022 and combats the online sale of stolen, counterfeit, and dangerous consumer products by adding transparency and accountability to online transactions. It directs online retail marketplaces that include third-party sellers of consumer products to verify the identity of “high-volume third-party sellers,” which helps deter the online sale of counterfeit goods by anonymous sellers and prevents organized retail crime rings from stealing items from stores to resell online. Many companies have also gone beyond the requirements of theINFORM Consumers Actand verify the identity of non-high-volume third-party sellers. In addition, theINFORM Consumers Actrequires online marketplaces to disclose to consumers in a clear and conspicuous manner on the product listing of any high-volume third-party seller a reporting mechanism that allows for electronic and telephonic reporting of suspicious marketplace activity to the online marketplace.
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