ABU DHABI – The Federal Trade Commission has started implementing the Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act (INFORM Consumers). This new federal law became effective on 27 June 2023.
Under this Act, “online marketplaces” where “high-volume third-party sellers” (both defined by the legislation) offer new or used consumer products are required to collect, verify and disclose critical information about those sellers.
Should an online marketplace fail to do so, they face a steep fine for each violation. Online marketplaces must also suspend high volume third-party sellers not providing the required information.
The Act also requires that online marketplaces provide consumers with a clear way to report suspicious conduct, such as possible counterfeit goods listed for sale.
The goal of this Act is to create more transparency for online shoppers and to create safer online marketplaces for consumers and IP rights holders.
For more information, please contact uae@qumsieh.com.