INFORM Consumers Act Becomes Law as Part of Congressional Appropriations Bill

Toy Association & Numerous Members Advocated for Passage of the Consumer Safety Legislation

January 3, 2023 | The Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers (INFORM Consumers) Act was included in the fiscal year 2023 omnibus funding package, which President Biden signed into law on December 29, 2022 and will go into effect in June.

The legislation establishes a national standard — enforced by the Federal Trade Commission and State Attorneys General — that requires online marketplaces to disclose certain verified information regarding high-volume third-party sellers of consumer products, including those who sell toys and youth entertainment products. The Toy Association is a strong advocate against counterfeit products and has been at the forefront in supporting legislation to protect consumers from illicit goods sold online.

“Counterfeit products are an ongoing, growing, and potentially devastating threat to the toy industry because of the serious health and safety risks they pose to children and families and the significant financial harm they have on U.S. businesses,” said Jennifer Gibbons, senior vice president of government affairs at The Toy Association. “We thank Congress and President Biden for taking action on this important issue, but our work is not over: The Toy Association will continue advocating for the important proactive measures in the SHOP SAFE Act. We also thank our members who have been engaged in this issue with us and tirelessly work to improve consumer safety measures.”

To help make this bill a reality, Toy Association members — both large and small — sent letters to Congress and participated in fly-ins and meetings on Capitol Hill to address the issue. In November 2021, Aaron Muderick, founder and executive chairman of Crazy Aaron’s and chairperson of The Toy Association’s Board of Directors, provided testimony to the Senate Committee on Judiciary, sharing details about the IP-related challenges faced by legitimate toy companies and examples of infringing products which do not comply with mandatory federal safety standards. Other members directly engaged with Congress to convey firsthand experiences of how counterfeit products sold online are impacting toy companies and their consumers.

“I want to thank all the members of Congress who supported the INFORM Consumers Act for helping protect small businesses like mine against fraudulent sellers and infringing products,” said Joann Cartiglia, CEO and president of The Queen’s Treasures, who was an active participant in the Association’s efforts in backing the passage of the legislation. “The current system places no responsibility on the seller or the marketplace to prevent or police counterfeits. The passage of INFORM is a step forward in providing small businesses and brands with the information we need to protect our products and our consumers.”

Members who are interested in adding their voices to issues impacting their companies are encouraged to join any one of The Toy Association’s advocacy committees. Contact Ed Desmond, executive vice president of global government and regulatory affairs, to learn how to get involved.

For more information on The Toy Association’s global advocacy work on counterfeits and IP protection, visit thetoyassociation.org/advocacy. Members may contact Jennifer Gibbons, vice president of government affairs at The Toy Association, with any questions.