The INFORM Consumers Act aims to create a safe and transparent online buying process and requires marketplaces like eBay to collect, verify, and disclose certain information about high-volume sellers.
A high-volume seller is someone who has sold 200 or more new or unused items totaling more than $5,000 in a 12-consecutive-month period over the last 24 months on eBay.
If you meet that criteria, eBay will need to collect and verify some identification and contact information.
High-volume sellers will need to keep their information up to date and eBay will ask you to review it annually.
If you reach an annual total revenue of $20,000, eBay is required to include your name (or company name) and full physical address in the buyer’s purchase confirmation emails and order details.
However, there are some exceptions that allow eBay to share a partial address with buyers.
If your address is your residential address, only your state and country will be shown.
If you use a different address for product returns, then that return address will be displayed.
Disclosing information about you. If a high-volume third party seller has annual gross revenues of $20,000 or more on a particular online marketplace, the INFORM Consumers Act requires that marketplace to disclose certain information about the seller on each of the seller’s product listing pages, or in order confirmation messages and account transaction histories on that platform. Here’s what must be disclosed:
The seller’s full name, which may include the business name or the name the seller uses on the online marketplace;
The seller’s physical address and contact information that will allow consumers to have what the law calls “direct, unhindered communication” with you. That could include a working phone number, a working email address, or other means of direct electronic messaging. If the listing includes a physical address for product returns, that’s sufficient under this part of the law. Furthermore, if you used a different business to supply the product a consumer bought, the online marketplace must disclose that and also provide, at the consumer’s request, the name, address, and contact information for that business.
TL;DR
If you are a private seller operating out of your residence and you meet the INFORM Consumers Act cutoff, buyers may gain access to your full name and home address, and potentially a phone number and/or email to contact you. There are ways to apply for an exemption, so that only your name and state (or name and country) are shown.
Protects Consumers from Fraud and Counterfeit Goods
Ensures consumers receive genuine products by requiring marketplaces to collect and verify identification, banking, and contact information for high-volume sellers.
Reduces the risk of purchasing counterfeit, stolen, or unsafe products.
Promotes Trust and Transparency
High-volume sellers must disclose key business details to consumers, such as their name and contact information, fostering trust in transactions.
Consumers can make more informed decisions by knowing who they are buying from.
Holds Sellers Accountable
Prevents bad actors from hiding behind anonymity on large platforms.
Discourages fraudulent or illegal activity by making sellers traceable.
Creates a Level Playing Field
Supports legitimate businesses by reducing unfair competition from sellers engaging in deceptive practices.
Encourages a fairer marketplace environment.
Streamlines Enforcement Against Fraud
Makes it easier for law enforcement to identify and act against sellers involved in illegal activities.
Improves overall marketplace integrity by deterring fraudulent behavior.
via ChatGPT, and confirmed on the FTC website.
In some ways, it does make sense. In theory it is a way to flag shillers, dropshippers, counterfeit sellers across accounts. In practice, it does expose the personal information of a lot of people who are just doing the right thing.
Luckily I don’t sell many new or unused items so I don’t think I’ll qualify as a high volume seller. If you mark PSA graded cards as new, then it’s probably time to change it to used.
Edit: Huh, I just checked and noticed new and used are gone completely from PSA graded cards so I’m not quite sure what they are counted as.
As of October 23, 2023, eBay no longer allows sellers to list trading cards as used on its platform. Instead, sellers must indicate if the card is graded or ungraded. I’m not sure whether eBay counts these sales as new/unused for high-volume seller status. That clarification would be very helpful.
It seems like the intent of the law is to identify drop-shippers and folks who sell inauthentic new/unused items. But whether eBay is doing their due diligence to not include hobby sellers who mostly transact in used items is anyone’s guess.
I just spoke with a representative from eBay. They could not confirm whether CCGs/TCGs are considered new/unused or used, and whether they will be applicable to the INFORM Consumers Act. I should hear back from eBay’s trading cards department by the end of next week.
If you have 30 minutes of free time, I would encourage you to reach out to eBay with this question. If they see a lot of activity from CCG/TCG sellers, they will respond more promptly.
I get the intention of this. But man, this is gonna get some vendors doxxed whenever they have an unhappy/unreasonable buyer. Wonder if this ends up making some people stop selling.
