A new federal law that went into effect this week gives government entities greater enforcement authority over the sale of counterfeit and unsafe goods on online marketplaces. And while it was the product of a bipartisan effort in Congress, the law’s new disclosure requirements and push for state and federal cooperation on enforcement are bound to keep lawyers busy in the not-too-distant future, experts say.
The INFORM Consumers Act, passed with Republican and Democratic support by Congress as part of the omnibus spending bill last year, requires online marketplaces to verify the identities of high-volume third-party retailers who use their services. It empowers both the Federal Trade Commission and state attorneys general to enforce the rule.
