- Collection:
- Georgia Law Review
- Title:
- The Grey Market’s Ability to Be Black and White: Regulating for Fraud in Online Marketplaces Beyond the INFORM Consumers Act
- Creator:
- Cofer, Jack A.
- Date of Original:
- 2025-01-01
- Subject:
- University of Georgia. School of Law
Law--Study and teaching
Georgia Law Review Association - Location:
- United States, Georgia, Clarke County, Athens, 33.96095, -83.37794
- Medium:
- notes (documents)
- Type:
- Text
- Format:
- application/pdf
- Description:
- The rapid expansion of e-commerce and the rise of secondary online marketplaces, amplified by the COVID-19 pandemic, have fundamentally altered consumer shopping behaviors. These marketplaces entice online shoppers with appealing benefits, such as sustainability, wallet-friendly pre-owned selections, or by simply offering what no one else can—accessibility. However, as demand for coveted goods outpaces supply, grey-market transactions flourish, exposing consumers to a risk of counterfeit and illicit products. This Note examines the INFORM Consumers Act, a regulatory framework aimed at enhancing transparency within secondary online marketplaces by imposing disclosure requirements on certain third-party sellers. While the Act represents a significant step toward marketplace accountability, it remains insufficient in closing critical gaps that allow fraud to persist. This Note identifies key shortcomings of the Act—namely, its limited applicability to only high-volume sellers and its failure to regulate entire segments of the online marketplace ecosystem—thereby leaving gaps for bad actors to continue exploiting online marketplace shoppers. To bolster consumer protections, this Note proposes legislative refinements, including expanding seller disclosure requirements, strengthening enforcement mechanisms, and considering escrow-based payment protections to reduce transaction risks. By shifting regulatory focus from individual fraudsters to marketplace gatekeepers, policymakers can create a more secure e-commerce environment. These reforms will ensure that the grey market, currently fraught with uncertainty, evolves into a safer, more consumer-friendly space.
INFORM Consumers Act -- grey market -- e-commerce -- Law - External Identifiers:
- Metadata URL:
- https://digitalcommons.law.uga.edu/glr/vol59/iss2/7
- Holding Institution:
- Alexander Campbell King Law Library
- Rights:
-
