Amazon contests laws that could force it to reveal third-party sellers’ identities

Amazon has contested against new legislation that could mean it will be forced to reveal and investigate the identities of its third-party sellers according to Axios.

The legislation, called INFORM, would also require Amazon amongst other ecommerce companies to verify seller’s identities as well as provide customers with their contact details.

Amazon has led calls for the laws to be ditched as it argues it would jeopardise third-party sellers’ privacy, however, the act has been supported by retailers such as Home Deport and Walgreens.

Etsy and Ebay have also argued that the legislation endangers the privacy of third-party sellers.
“The INFORM Act favours large brick-and-mortar retailers, at the expense of small businesses that sell online, while doing nothing to prevent fraud and abuse or hold bad actors accountable,” an Amazon spokesperson told Axios.

READ MORE: Amazon could face record €350m fine over GDPR breaches

Amazon confirmed in July last year that it would start publicly listing the names and addresses of US-based third-party sellers to help tackle counterfeiting on its platform after a wave of fake goods were found on the platform.

The ecommerce giant announced in May that it seized and destroyed over 2 million fake goods over the course of 2020.

It had previously partnered with the US government’s counterfeit watchdog as it attempted to ramp up efforts to tackle the prevalence of fake goods on its platform.

The company has previously pursued counterfeiters in court and blocked millions suspected of listing fake or banned goods, however has struggled to stamp out counterfeit goods on its vast marketplace which now accounts for over two thirds of its sales.

This led to major fashion brand Nike cutting its ties with Amazon as a result of a spike in counterfeit goods being sold on its platform.

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