If you’re buying wholesale to resell on Amazon and your business is growing, there’s a federal law worth understanding before it catches you off guard: the INFORM Consumers Act. Once you cross a fairly modest sales threshold, Amazon is legally required to collect and verify a set of your business details – and if you ignore the notification, your account can be deactivated.
What the INFORM Consumers Act actually requires
INFORM (Integrity, Notification, and Fairness in Online Retail Marketplaces) is a federal law that took effect in 2023, and Amazon began enforcing it for sellers starting in 2024. It requires online marketplaces to collect, verify, and in some cases disclose certain information from what the law calls “high-volume third party sellers.” This isn’t an Amazon-specific policy – eBay, Walmart Marketplace, and other online marketplaces are bound by the same federal requirement.
Who counts as a “high-volume” seller
You’re covered by INFORM if, in any continuous 12-month period within the past 24 months, your account has both: 200 or more discrete sales or transactions of new or unused consumer products, and an aggregate total of $5,000 or more in gross revenue. Note that it’s both conditions together, not either one alone – a seller with 500 low-dollar transactions but under $5,000 in revenue, or a seller with one $10,000 transaction, doesn’t meet the definition. For a wholesale reseller moving real volume, though, both thresholds are easy to clear within a few months of steady sales.
What Amazon has to collect and verify
Once you’re flagged as high-volume, Amazon must collect and verify: bank account information (an account number or payee name Amazon can use for payouts), your identity (your full name if you sell as an individual, or a government-issued ID or tax document showing your business name and physical address if you sell as a business), a tax identification number, and a current working email address and phone number. Government-issued tax documents get verified automatically on submission; other information may take longer to confirm.
The annual certification cycle
This isn’t a one-time setup. Amazon requires high-volume sellers to review and re-certify their information annually, and by law you have 10 days from when Amazon notifies you to complete that certification or report any changes. Miss that window and the consequences escalate quickly: sellers who don’t act typically get a deactivation warning first, and then face actual account deactivation and held disbursements if the certification still isn’t completed.
Why this matters more as you scale
Sellers who source wholesale specifically to grow volume – rather than staying at a hobbyist scale – are exactly the sellers most likely to cross the INFORM threshold, often faster than they expect. A single successful wholesale reorder cycle can push a seller past 200 transactions and $5,000 in revenue well within a 12-month window. Getting flagged isn’t a red flag on your account by itself – it’s simply the law working as intended – but missing the 10-day certification window because you didn’t notice the notification absolutely can put your account, and the wholesale inventory you’ve already paid for, at risk.
- Check your Account Health dashboard periodically once your sales start climbing, rather than waiting for a deactivation warning to tell you something’s pending.
- Keep your bank details, tax ID, and contact information current before Amazon asks – a certification notice with outdated information takes longer to resolve than one where everything already matches.
- Business sellers should have a government-issued ID or tax document ready that clearly shows your business name and physical address, since that’s what verifies automatically.
- Don’t assume this is optional or a phishing attempt. INFORM notifications are a real federal requirement, not a scam email – though it’s still worth confirming any request came through your actual Seller Central account rather than an external link.
Wholesale Distributors US ships authentic inventory with the invoice documentation resellers need for ungating – apply for a wholesale account to see current terms.
FAQ
What is the INFORM Consumers Act?
A federal law requiring online marketplaces like Amazon to collect, verify, and annually re-certify certain business information from “high-volume third party sellers” – identity, bank account details, tax ID, and contact information.
What sales volume triggers INFORM Act requirements on Amazon?
You’re covered once you have both 200 or more transactions of new or unused consumer products AND $5,000 or more in gross revenue within any continuous 12-month period in the past 24 months. Both conditions must be met together, not just one.
What happens if I don’t certify my information when Amazon asks?
You have 10 days by law to certify or update your information once notified. Missing that window typically leads to a deactivation warning first, then temporary account deactivation and held disbursements if you still don’t act.
Related reading: How Much Capital Do You Need to Start Amazon FBA Wholesale? | Sales Tax Nexus for Wholesale Resellers | Do You Need a Resale Certificate to Buy Wholesale? | eBay’s 2026 User Agreement Changes: What Sellers Need to Know
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