In the ongoing battle against organized retail crime (ORC), retailers and policymakers are continuously exploring innovative ways to curb criminal activity and protect businesses. One such initiative is the INFORM Act, a significant piece of legislation aimed at making it harder for criminals to profit from stolen goods through online marketplaces. In this episode of Retail's Most Wanted, legal expert Paul Singer discusses the role of the INFORM Act and how it is shaping the fight against ORC.

What is the INFORM Act?

At its core, the INFORM Act is a transparency law targeting high-volume sellers on online platforms. Its primary focus is ensuring that platforms collect and verify key information—such as contact details and bank account information—from sellers who meet certain thresholds. These thresholds include having over 200 transactions totaling $5,000 or more within a year. The law applies to major online marketplaces where the sale is transacted directly through the platform, such as eBay and Amazon.

Challenges and gaps in the INFORM Act

However, as with many laws, criminals have found ways to adapt. Some have shifted to smaller, high-margin items that are easier to move and harder to track. Others have tried to evade the law by setting up multiple accounts that don’t reach the reporting thresholds, or by taking transactions offline entirely.

Additionally, the law doesn’t directly target the criminals perpetrating the thefts—it places the burden on online marketplaces to collect information and identify problematic sellers. As Singer points out, this has caused some frustration among law enforcement, as the act doesn’t necessarily result in catching the criminals, but rather provides more data to help track them.

The role of state attorneys general and future improvements

State attorneys general play a crucial role in enforcing the INFORM Act alongside the Federal Trade Commission. Many states have implemented their own versions of the law, with some even expanding the provisions to close loopholes. For example, Georgia recently passed amendments to address the offline transaction loophole.

Looking ahead, Singer believes that further legislative measures could strengthen the act’s impact. States like California are considering amendments to require online marketplaces to take a more proactive role in identifying and reporting suspicious sellers, which could enhance enforcement efforts.

Retail's Most Wanted is presented by LVT and the Attorney General Alliance.