Amazon Supports Revised INFORM Act
Amazon announced that it supports a rewrite of the House bill that would require e-commerce platforms to verify the identity of some high-volume third-party sellers, and would also require some disclosure to consumers about those sellers.
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"Amazon and a number of small businesses that sell in our store have spent this past year talking to policymakers about the facts and what Congress can do to truly help protect customers, while not punishing the honest small businesses that sell online. We appreciate that policymakers listened to these concerns and added important changes to H.R. 5502, the recently introduced House version of the INFORM Act," Amazon said.
"These modifications will protect innovation, giving Amazon and other online marketplaces flexibility in how we stop bad actors. Equally important, this bill will not favor one business model over another. We’re thankful for the progress that’s been made on the House version of the INFORM Act and look forward to supporting its passage. While there are a few areas in the bill that could be refined to further minimize burdens on honest sellers, we believe this bill will help protect small businesses and consumers alike. We also think it is important this bill establishes a federal standard, preventing an unworkable patchwork of state-level regulations."
The new version of the bill was released Oct 6; the company publicized its support Oct. 27. This followed a public announcement of support by a coalition that includes eBay, Etsy and others. The Buy Safe America Coalition -- which represents trade groups such as Retail Industry Leaders of America and American Apparel and Footwear Association as well as major retailers such as Lowe's and Walgreens -- welcomed the news too, but cautioned against what it called watering down the bill. Some of these companies' concerns are less about counterfeiting and more about the ability of shoplifters to easily resell items online.