The INFORM Consumers Act has become one of the most important regulatory requirements for Amazon sellers. Since its enforcement began in June 2023, every seller whether established or just launching must comply with stricter verification procedures. This law was designed to combat fraud, protect consumers, and make online marketplaces more transparent. As a result, Amazon now requires sellers to provide verifiable identity, tax, and banking information before they can continue selling.

If you are selling on Amazon, the INFORM Consumers Act directly affects how your business is verified and monitored. Understanding how it works is essential if you want to avoid sudden account holds, suspended listings, or delays in your payout schedule.

What Is the INFORM Consumers Act?

The INFORM Consumers Act (Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act) is a federal law in the United States. Its main purpose is to prevent anonymous sellers from using marketplace platforms to sell stolen, counterfeit, or unsafe products. Before the law existed, many fraudulent sellers created multiple accounts, provided fake information, and disappeared from the marketplace after causing damage to customers or legitimate sellers. The INFORM Act was introduced to stop this behavior by making seller identity verification mandatory and continuous.

Under this law, online marketplaces like Amazon, Walmart, eBay, and Etsy must collect detailed identity and business information from high-volume sellers. They must also verify this information, display certain seller details to customers, and perform annual re-verification to ensure the details remain accurate.

Who Is Considered a High-Volume Seller?

According to the INFORM Act, a high-volume third-party seller is defined as any seller who generates $5,000 or more in gross revenue within a 12-month period during the previous two years. Almost every active Amazon seller falls into this category, including private label brand owners, wholesalers, online arbitrage sellers, dropshippers, and even many handmade sellers.

Even if you don’t consistently hit $5,000 each month, generating this amount annually makes you subject to the verification rules. In many cases, Amazon also requests verification from sellers outside this category when something suspicious or inconsistent appears in the account.

What Information Amazon Must Collect From Sellers

To comply with this law, Amazon must collect verified information about every high-volume seller. This includes your legal name or business name, government-issued identification, bank account details, tax identification numbers, and a verified physical business address. The name on your official ID must match exactly with the name entered in Seller Central. Similarly, the address you provide must be real and verifiable. Amazon often checks this by requesting utility bills, rental agreements, or even sending postcards with verification codes.

Amazon also has the obligation to collect working contact details such as phone numbers and emails. For sellers generating $20,000 or more annually, Amazon must disclose certain basic information such as your business name and address on your public storefront unless you qualify for privacy exceptions.

Why Amazon Is So Strict About This Law

The INFORM Consumers Act holds marketplaces responsible for verifying seller identities. If Amazon fails to verify a seller properly, it can be fined up to $50,000 per violation. This is why Amazon takes even the smallest mismatch seriously. Whether it is a small error in your name, an outdated address, or a blurry photo of your ID, Amazon may immediately place your account under review. Many sellers receive notification banners in Seller Central urging them to update their verification information, and failing to act on these warnings leads to account restrictions.

Common Reasons Sellers Fail Verification

A major reason sellers fail to comply with the INFORM Act is inconsistent account information. Something as simple as the address on your ID not matching the address in your account can trigger rejection. Many sellers also face issues if their bank account is under a different name from their legal entity. Expired documents are another common reason for rejection; Amazon does not accept IDs that are no longer valid.

Another frequent problem happens when sellers upload low-quality or digitally edited documents. Amazon’s system can detect modified files, screenshots, or altered PDFs and will instantly reject them. Even logging into Seller Central from unusual locations or using VPNs can force Amazon to initiate a full re-verification, which leads to delays and temporary selling restrictions.

What Happens If You Fail INFORM Act Compliance?

If a seller does not comply with verification requirements, Amazon takes action quickly. First, they usually send notifications through email and Seller Central performance alerts requesting updated documents. If the seller does not respond or fails to provide correct information, Amazon may temporarily deactivate the seller’s listings. In more serious cases, the entire account gets suspended and disbursements are placed on hold. Amazon may also freeze your funds indefinitely until verification is completed successfully. If a seller repeatedly fails verification or provides fraudulent information, Amazon may permanently remove their selling privileges.

How to Complete Amazon INFORM Act Verification Step by Step

To comply with the law, sellers must navigate Amazon’s verification system within Seller Central. The process begins by visiting Settings → Account Info → Business Information → Business Verification. If Amazon requires action from you, you will normally see a banner prompting you to review your identity information.

Once you enter the verification page, Amazon will ask you to upload the required documents. These documents must be clear, original, and unedited. The name, address, and date of birth must match exactly with the information on your Amazon account profile. After submitting your ID, Amazon may ask you to verify your address using additional documents or by sending a verification code via mail to your physical address. You must enter this code in Seller Central when it arrives.

Amazon may also call you or send a verification link to your phone number to confirm that you have access to the contact details in your account. After everything is submitted, Amazon generally approves verification within 24–72 hours, though some cases take longer if additional checks are needed.

How to Resolve an INFORM Act Suspension

If your account has been suspended due to INFORM Act non-compliance, the solution is to correct all inconsistencies and resubmit proper documents. Start by reviewing every field inside your Seller Central business information section. Make sure your legal entity name, address, bank account details, and tax information all match perfectly. Update anything that is incorrect or outdated.

Next, gather fresh copies of your identification documents and ensure they are not expired. Take clear photographs without any reflections or shadows. If Amazon rejected your previous documents, check the rejection reason carefully. Sometimes the issue is simply a mismatch in middle names or incomplete address formats. After fixing the issue, go to the Performance Notification related to the suspension and submit a clear explanation describing what was corrected and why the problem occurred. Avoid long or emotional explanations Amazon only wants factual clarity. Once the documents are reviewed and approved, your account will be reinstated and your disbursements will resume.

Staying Compliant With the INFORM Act in 2025

Staying compliant is much easier when you maintain your business information proactively. Any time your address, phone number, bank account, or business structure changes, update it immediately in Amazon Seller Central. Keep your identification documents valid and renew them before expiration to avoid automatic verification issues. Avoid using VPNs or logging in from suspicious locations that could trigger verification flags.

Consistency is the most important factor. The information you use for your business registration, tax documents, utility bills, bank account, and Amazon account should be identical. When Amazon requests annual re-verification, complete it early instead of waiting for warnings or account restriction notices.

Final Thoughts

The INFORM Consumers Act is not just another policy update it is a federal law. Amazon enforces it aggressively because failure to do so leads to major penalties. For sellers, compliance is straightforward as long as all your documents and business information are accurate and consistent. The easiest way to avoid verification issues is by maintaining proper records and responding immediately whenever Amazon requires updated information.