Retailers Urge FTC: Strengthen Consumer Safety Enforcement

By [ Michael Hanson ]
Washington, DC
06/26/2025

Today the Retail Industry Leaders Association (RILA) sent a letter to the Federal Trade Commission calling for stronger enforcement, transparency and accountability of online third-party marketplaces as required by the Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act (INFORM Act) ahead of the law’s two-year anniversary.

The INFORM Act is a pivotal measure to safeguard consumers from unknowingly buying counterfeit or stolen goods online, and to protect businesses from having their stolen merchandise fenced by organized retail crime rings.

“As retailers continue their fight against organized retail crime, the law provides a much-needed layer of accountability for online marketplaces to stop bad actors and it creates an environment of transparency in a previously dark web of fraudulent activity. But for the law to have its greatest impact in protecting consumers and increasing community safety, the FTC must step up enforcement efforts to ensure the collection, disclosure and enforcement of critical information so these criminal actors are identified and prosecuted,” said RILA Sr. Executive Vice President of Public Policy Michael Hanson.

In addition to requiring platforms to collect, verify, and disclose basic information about third-party sellers, INFORM gives the Federal Trade Commission (FTC) and state attorneys general the authority to enforce the law via penalties and rulemaking.

“As INFORM enters its third year, it is critical the FTC move into a more robust phase of enforcement to hold platforms accountable and deter bad actors. Now is the time for the FTC to embrace and ramp up the execution of their legal authority under the law,” Hanson said.

The INFORM Consumers Act passed Congress in bipartisan fashion December 2022, after long-fought advocacy by RILA and its members, as well as a broad and diverse coalition of consumer groups, manufacturers, intellectual property advocates and law enforcement officials.

RILA continues to collaborate with an ecosystem of public and private stakeholders to address other spokes in the wheel of organized retail crime. The association is actively urging Congress to pass the Combatting Organized Retail Crime Act of 2025 that establishes a coordinated federal response to the growing societal problem of retail theft.
The RILA Communities Foundation, a 501(c)3, established in 2024, is tasked with addressing complex challenges impacting the communities served by leading retailers. The Foundation is now focused on two major projects: RILA’s Vibrant Communities Initiative, a first-of-its kind partnership between leading retailers and district attorneys’ offices to combat retail crime, and the Gift Card Fraud Prevention Alliance, a national effort to protect consumers and drive innovation to fight against gift card fraud.

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RILA is the US trade association for leading retailers. We convene decision-makers, advocate for the industry, and promote operational excellence and innovation. Our aim is to elevate a dynamic industry by transforming the environment in which retailers operate.

RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $2.7 trillion in annual sales, millions of American jobs, and hundreds of thousands of stores, manufacturing facilities, and distribution centers domestically and abroad.