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Thursday, November 7, 2024

The INFORM Act seeks to protect online consumers from 'fake, dangerous and stolen products' sold on Amazon

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A recent investigation revealed massive theft rings selling stolen goods on different online platforms, including Amazon. | stock photo

A recent investigation revealed massive theft rings selling stolen goods on different online platforms, including Amazon. | stock photo

Pennsylvania is seeking to protect online consumers from counterfeit sellers through the INFORM act.

The Wall Street Journal reported in early September that a huge conglomerate of thieves are selling stolen goods on a number of online platforms, including Amazon.  

House Bill 1594, the INFORM Act, was introduced by Pennsylvania Rep. Kathleen Tomlinson (R-Bensalem Township) to mitigate the sale of online counterfeit goods, according to Keystone Today. The law would force third-party sellers who sell in high volume to verify their information.


Rep. Kathleen Tomlinson | Wikimedia Commons

The measure will allow the Bureau of Consumer Protection within the office of the attorney general and district attorneys to use their powers and duties for the collection and verification of information from high-volume third-party sellers, amending the Unfair Trade Practices and Consumer Protection Law of 1968.

Research by The Wall Street Journal revealed a $45 billion stolen goods network, where brick-and-mortar stores like CVS, Walgreens, Home Depot, Walmart and others were victims of sophisticated crime rings, in which criminals steal merchandise and then sell it to resellers using online platforms like Amazon. The thieves profit millions of dollars from the scheme, and Amazon is complacent in stemming the sale of the stolen products on its platform, which impacts consumers in Ohio, Pennsylvania and across the country.

The Retail Industry Leaders Association (RILA) has issued a referendum against selling counterfeit or illegal goods online.

“Online shopping has been a lifeline for many families throughout the last year, but its surge has also exposed the frequency of counterfeit and stolen goods sold online,” RILA Senior Executive Vice President for Public Affairs Michael Hanson said, according to RILA's website. “Online marketplaces make it easy for small and medium-sized businesses to connect with customers all over the world, but they have also become a hotbed for unscrupulous actors, both at home and abroad, to peddle fake, dangerous and stolen products that would never be allowed on a store shelf or retail website.”  

The Department of Homeland Security reported last year on the mounting problem of counterfeit goods sold on marketplace platforms, highlighting the need for Congress and regulators to do more to hold sellers and the platforms accountable when counterfeit products are sold to consumers.

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