Online marketplaces challenge seller openness, citing privacy as a central justification for their actions.
The PASS Coalition, a group consisting of major online marketplaces such as eBay, Etsy, Mercari, OfferUp, and Poshmark, has voiced concerns about the INFORM Act, a federal bill aimed at curtailing sales of fake and stolen goods through online marketplaces.
### PASS Coalition's Concerns about the INFORM Act
The INFORM Act requires online marketplaces to collect, verify, and disclose detailed information about third-party sellers to prevent the sale of counterfeit and stolen merchandise. However, the PASS Coalition members worry that the regulatory burdens and compliance requirements placed on platforms may be overly stringent or not well-tailored to the realities of the recommerce and small seller ecosystem.
The coalition emphasises the importance of supporting small sellers who use these platforms and has expressed opposition to some related legislative efforts, such as the SHOP SAFE Act, which they believe could impose excessive burdens on individual sellers and marketplaces alike.
### INFORM Act vs. PASS Coalition's Approach
While the INFORM Act is a legal enforcement framework that imposes mandatory data collection and verification responsibilities on online marketplaces, backed by enforcement authority for the FTC and state attorneys general to penalise non-compliance, the PASS Coalition’s approach focuses more on lobbying for marketplace-friendly regulations that enable small sellers to continue operating without excessive regulatory or financial reporting burdens, while still supporting anti-fraud measures.
The PASS Coalition supports efforts like the bipartisan Recommerce Caucus to inform policymakers about the needs of the secondhand economy, emphasising empowerment and growth rather than stringent regulatory measures.
### Privacy Concerns and Misinterpretations
The coalition has also cited privacy concerns regarding some of the bill's disclosure requirements. In addition, they have expressed disappointment with the misinterpretation of the bill's intention and its potential impact on the platforms' operations and seller participation.
Brands have become exasperated by the flood of counterfeits on online platforms, leading to the introduction of the bipartisan INFORM Act in the U.S. Senate last week. However, the PASS Coalition agrees with the goals of preventing sales of counterfeit and stolen goods but is cautious about how the INFORM Act’s mandates affect platform operations and seller participation, advocating for a more balanced approach that protects small sellers while addressing fraudulent activity.
Amazon has not returned requests for comment on either effort, while multiple requests for clarification from eBay, Poshmark, Mercari, and OfferUp were not returned.
[1] Hanson, A. (2021). The PASS Coalition: A New Force in the Fight Against Counterfeits. Online Seller Central. Retrieved from https://www.onlinesellercentral.com/news/the-pass-coalition-a-new-force-in-the-fight-against-counterfeits/ [4] eBay Inc. (2021). eBay Joins Coalition to Protect America's Small Sellers. eBay Newsroom. Retrieved from https://www.ebayinc.com/stories/ebay-joins-coalition-to-protect-americas-small-sellers/
- The PASS Coalition, concerned about the INFORM Act's potential impact on the recommerce and small seller ecosystem, advocates for marketplace-friendly regulations to prevent excessive regulatory burdens without compromising anti-fraud measures.
- While the INFORM Act focuses on mandating data collection and verification responsibilities for online marketplaces, the PASS Coalition prioritizes general-news and law-related policies that empower and support smaller sellers.
- The PASS Coalition has voiced concerns about privacy issues related to the INFORM Act's disclosure requirements and has expressed disappointment with the bill's misinterpretation in the media, potentially affecting platform operations and seller participation.
- Brands, frustrated by the prevalence of counterfeit goods on online platforms, have supported the introduction of measures like the INFORM Act, but the PASS Coalition urges a more balanced approach that protects both sellers and customers from fraudulent activity.
- In the realm of technology, AI and policy discussions surrounding the INFORM Act and counterfeit merchandise merchandise on online marketplaces, lawmakers, brands, and industry groups alike are actively engaging, with the PASS Coalition being one of the key players advocating for the rights of small sellers.
