Amazon strongly opposes new US bill to verify sellers' identities

According to foreign media reports, the U.S. House of Representatives is considering a bill requiring some online sellers to provide identity information and contact information. The bill has previously been strongly opposed by Amazon.

The bill, called the INFORM Act, seeks to force Amazon and other e-commerce platforms to verify the identities of their third-party sellers and disclose some contact information about them to consumers. The bill would require online marketplaces to collect and verify the identities of vendors who have made at least 200 sales in a year with a value of more than $5,000.

Judging from the provision of "at least 200 sales in a year and a value of more than US$5,000", if this bill is really passed, most sellers will be affected.

Lawmakers said criminals steal goods from physical stores and sell them through e-commerce platforms, a problem that has become increasingly serious as e-commerce has grown rapidly during the epidemic. Reviewing seller information will prevent criminals from using these platforms to sell counterfeit and stolen goods. The main supporters of this bill include major retailers such as Home Depot and Walgreens.

But online platforms such as Amazon, Etsy and eBay say the proposals could harm sellers’ privacy, and the bills are being pushed and supported by large retailers seeking to gain an edge over online rivals.

Earlier this year, some senators tried to pass the bill, but it ultimately failed due to lobbying by companies such as Amazon. According to reports, Amazon spent $4.8 million on lobbying to prevent the bill from being passed in the first quarter of this year alone . However, supporters of the Information Act continued to request the bill to be passed in the House of Representatives after amending the bill and promising to protect sellers' privacy.

In a hearing held on October 14, Etsy and eBay have expressed support for the revised bill. Etsy said that the new version does a better job of protecting sellers' privacy, "it strikes an appropriate balance between information review and disclosure without infringing on privacy." Amazon declined to comment on the House version.

Some media believe that the originally unanimous opposition to e-commerce platforms has split, which may pave the way for the latest legislation.

The Makers and Merchants Coalition, which is reviewing the bill, said: "While some retailers have expressed support for the bill, small sellers come in all shapes and sizes, and we are reviewing the latest version to ensure that all honest sellers are not harmed."

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