INFORM Consumers Act & Section 18: What Every Amazon Seller Should Know

If you’re an Amazon seller, two separate but related rules now govern how you manage your business information: Section 18 of Amazon’s Business Solutions Agreement (BSA) and the INFORM Consumers Act. Section 18 controls when and how you can transfer or restructure your seller account, while the INFORM Consumers Act imposes new verification and disclosure obligations on high‑volume sellers. Failure to comply with either can lead to account holds, frozen disbursements or suspension. Here’s what you need to know.

The INFORM Consumers Act in a nutshell

The Integrity, Notification and Fairness in Online Retail Marketplaces for Consumers (INFORM) Act is a U.S. law that took effect on June 27 2023. It requires online retail marketplaces like Amazon to collect, verify and disclose identifying information about high‑volume third‑party sellers. Amazon supported the bill, noting that a nationally consistent standard will help small businesses avoid having to navigate multiple state regulations.

Under the law, online marketplaces must verify a seller’s government ID, tax ID, bank account and contact information. A high‑volume third‑party seller is defined as a vendor who has made 200 or more discrete sales in a 12‑month period amounting to at least $5,000. Marketplaces must ensure that high‑volume sellers disclose basic identity and contact information to consumers. An exception allows individual sellers to keep their street address and phone number private if they respond to customer emails in a reasonable time.

The Federal Trade Commission (FTC) and state attorneys general enforce the INFORM Act, and violations can result in civil penalties. Amazon began contacting affected sellers months before the law took effect and continues to provide instructions and resources to help sellers comply.

Section 18 and its interplay with the INFORM Act

Section 18 of Amazon’s BSA prohibits sellers from assigning or transferring their accounts without Amazon’s prior written consent. Even an internal restructure or change of legal entity triggers Section 18 and often initiates a Seller Identity Verification (SIV) process. When the INFORM Act entered into force, sellers who updated their U.S. account information sometimes found themselves stuck: the law required them to verify business information, but the necessary fields were greyed‑out due to Section 18 constraints. Amazon’s systems can inadvertently create a regulatory catch‑22 if you attempt to update information without proper approval.

In other words, if you’re changing your legal entity (a Section 18 matter) and fall within the INFORM Act’s definition of a high‑volume seller, you must navigate both processes simultaneously. Failing to follow Section 18 can trigger account locks; failing to verify information under the INFORM Act can result in suspension.

How to comply with the INFORM Act

Determine if you are a high‑volume seller. Tally your U.S. sales over the last 12 months. If you’ve made 200 or more transactions and at least \$5,000 in revenue, you fall under the INFORM Act’s requirements.
Gather required information. You’ll need to provide Amazon with your government ID, tax identification number (TIN or EIN), bank account information and a working email address or phone number.
Respond promptly to Amazon requests. Amazon will contact you via Seller Central when verification is required. Follow the instructions carefully and submit documents promptly; keep copies of all submissions and case IDs for reference.
Ensure your contact details are accurate. High‑volume sellers must provide consumers with a way to contact them directly via email, phone or a marketplace messaging system. If you choose not to display your address or phone number publicly, you must respond to customer emails within a reasonable timeframe.
Watch for cross‑border implications. If you operate in multiple marketplaces (e.g., U.S. and EU), ensure that updates in one region do not conflict with greyed‑out fields in another. Seek Amazon’s approval under Section 18 before editing entity information to avoid SIV holds.

Best practices for managing INFORM Act and Section 18 obligations

Coordinate your timing. Before initiating a legal entity change, verify whether the INFORM Act applies to you and plan to satisfy both requirements. Submit your Section 18 request first and wait for Amazon to unlock the necessary fields before providing INFORM Act details.
Over‑document your submissions. Keep copies of all uploaded documents, dates and case numbers. If Amazon’s support team loses track of your case (a common occurrence), you’ll need to reference prior communications.
Stay informed about policy updates. Amazon can modify the BSA with 15 days’ notice and will provide instructions for new legal obligations via Seller Central. Add reminders to review these notices promptly.
Ask for help when needed. Legal professionals and compliance consultants can help you interpret Section 18, prepare INFORM Act submissions and respond to Amazon’s verification requests. ASA Compliance Group has navigated thousands of migrations, Section 18 approvals and INFORM Act verifications, preserving account histories and preventing suspensions.

Conclusion

The INFORM Consumers Act and Section 18 are designed to protect consumers and maintain marketplace integrity. They’re also a source of confusion for sellers who need to change their legal entity or scale their business. By understanding the scope of the INFORM Act, recognising when Section 18 applies and following Amazon’s prescribed process for updates, you can stay compliant and keep your seller account running smoothly. If you’re unsure about your obligations, seek guidance early – it’s far easier to prevent a suspension than to resolve one.