U.S. Senate Democratic Whip Dick Durbin, Ranking Member of the Senate Judiciary Committee, has released new data regarding the effects of the Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers (INFORM Consumers) Act. The legislation, which took effect on June 27, 2023, aims to increase transparency and accountability in online marketplaces by deterring the sale of stolen, counterfeit, or unsafe goods.
Durbin’s office collected information from 46 companies that run online marketplaces after he and Senator Bill Cassidy sent letters requesting updates on their implementation and enforcement of the INFORM Consumers Act. These companies include major platforms such as Amazon.com Inc., eBay Inc., Walmart Inc., Meta Platforms Inc., Temu (WhaleCo, Inc.), and others.
“Since the INFORM Consumers Act went 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 the INFORM Consumers Act requirements 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, the INFORM Consumers Act, and other laws.”
According to data gathered by Durbin’s staff:
- Nearly 40,000 high-volume third-party sellers had their accounts suspended due to violations of the act; about half were later reinstated after meeting compliance requirements.
- Around three million non-high-volume third-party seller accounts were suspended or removed for selling prohibited goods.
- Nearly 24 million product listings were taken down from various online marketplaces.
The act requires online retail platforms with third-party sellers to verify identities for high-volume sellers. This measure is designed to prevent anonymous parties from selling counterfeit items or participating in organized retail theft rings. Some companies have also chosen to verify non-high-volume sellers beyond what is required by law.
Initially there was no indication that enforcement actions had begun under this new law. However, following a letter from Senators Durbin and Cassidy in August 2025 urging action by federal authorities, a joint effort between the Federal Trade Commission (FTC) and Department of Justice led to an enforcement case against Temu in September 2025. The complaint alleged Temu failed to provide sufficient means for reporting suspicious activity or adequate methods for flagging questionable product listings within its gamified shopping features. Temu also did not disclose necessary information about third-party sellers as required by law. A proposed consent decree included a $2 million civil penalty against Temu.
The Senate Judiciary Committee oversees legislative matters related to federal judicial policy—including consumer protection laws like this one—and supervises relevant law enforcement agencies according to its official website. Through these responsibilities it impacts constitutional rights and public safety nationwide via legislative oversight duties (source). The committee consists of senators from both parties who review bills such as the INFORM Consumers Act (source).
The INFORM Consumers Act was signed into law in December 2022 with bipartisan support.
