Nearly 3 million online seller accounts removed under federal law, Sen. Durbin says

Nearly 3 million online seller accounts removed under federal law, Sen. Durbin says

Nearly 3 million online seller accounts have been removed from major shopping platforms since a federal law aimed at curbing fraud and counterfeit goods took effect, according to data released by Sen. Dick Durbin.

ILLINOIS - Nearly 3 million online seller accounts have been removed from major shopping platforms since a federal law aimed at curbing fraud and counterfeit goods took effect, according to data released by Sen. Dick Durbin.

What we know:

Durbin said the INFORM Consumers Act, which became law in June 2023, is forcing online marketplaces to crack down on fraudulent sellers, fake merchandise and unsafe products. 

His office collected information from dozens of companies showing nearly 3 million third-party seller accounts were suspended or removed, along with more than 24 million product listings.

Those companies include some of the biggest names in online shopping, like Amazon, Etsy, eBay, Shopify, and Temu.

The law requires online marketplaces to verify the identity of high-volume sellers and give shoppers clear ways to report suspicious activity. The goal is to prevent anonymous sellers from moving stolen or counterfeit goods and to protect consumers and legitimate businesses.

Durbin’s office says about 40,000 high-volume seller accounts were suspended for violating the law. Roughly half were later reinstated after meeting the requirements. Millions of other seller accounts were removed entirely.

Enforcement picked up last year when federal regulators took their first case under the law. 

The Federal Trade Commission fined Temu $2 million, saying the platform failed to give users proper tools to report suspicious sellers and listings.

What's next:

Durbin says the numbers show progress, but not the finish line. He says continued enforcement is needed as more people rely on online marketplaces to shop, sell, and run their businesses every day.