Selling Collectibles Online? The INFORM Consumers Act Is Watching

If you buy or sell collectibles on Whatnot, eBay, COMC, or any large platform, a federal law is quietly shaping the transaction, and many serious collectors do not know they now fall under it.

The INFORM Consumers Act (15 U.S.C. § 45f) requires online marketplaces to collect, verify, and in some cases disclose identifying information about “high-volume third-party sellers.” A seller crosses that threshold at 200 or more transactions and $5,000 or more in gross revenue in a continuous 12-month period. For an active card or memorabilia flipper, that bar is low. Once you clear it, the marketplace must verify your identity, bank, and tax information and disclose contact details to buyers.

The law is aimed at deterring the anonymous sale of counterfeit and stolen goods, a chronic problem in collectibles. Enforcement runs through the FTC, which treats a violation as a violation of an FTC rule, with civil penalties now exceeding $53,000 per violation. State attorneys general can sue as well. Note where the liability sits: the obligations fall on the marketplace, not the buyer, but the practical consequences reach everyone who sells.

For high-volume sellers, three takeaways.

First, you are now identifiable. The anonymity that let some sellers move questionable material is gone by design. For legitimate sellers, that is a feature, because verified identity builds buyer trust.

Second, verification is not authentication. The Act confirms who the seller is. It does nothing to confirm that a graded card or a signed jersey is genuine. Do not mistake a marketplace’s INFORM compliance for a guarantee of authenticity. Your authenticity protections still come from express warranties, consumer-fraud statutes, and your own diligence.

Third, keep your records clean. If you are near the threshold, treat your selling like the business it has become: accurate records, clear item descriptions, and prompt responses to disputes. The documentation that satisfies the marketplace also protects you if a buyer later claims misdescription.

For buyers, the Act is a modest tool. It gives you a real identity behind a high-volume listing and a channel to report suspicious sellers, which matters when you need to pursue a fake. It is not a substitute for verifying certification numbers directly with the grader and keeping the listing and invoice.

Looming over this is the proposed SHOP SAFE Act, which would go further and expose marketplaces themselves to trademark liability for certain counterfeit sales. It has not passed, but its direction signals where marketplace accountability may be heading.

The through-line for collectors is simple. Platforms are being pushed to know their sellers, which is good for the hobby, but the law polices transparency, not truth. Authenticity is still your job.

Legal note: This article provides general information and is not legal advice.

Authorities: INFORM Consumers Act, 15 U.S.C. § 45f (eff. June 27, 2023); FTC business guidance; SHOP SAFE Act (proposed, not enacted).