NIWERS INFORM ACT DISCLOSURES

Effective Date: pending — company being formed Version: 2026-05-v1.0

Introduction

This document describes Niwers's compliance with the INFORM Consumers Act, codified at 15 U.S.C. § 45f, signed into law on December 29, 2022, and effective June 27, 2023.

The INFORM Consumers Act ("INFORM Act") requires online marketplaces to:

1. Verify the identity of "high-volume third party sellers"
2. Collect and maintain specific seller information
3. Disclose seller information to consumers
4. Provide a reporting mechanism for suspicious sellers
5. Suspend non-compliant sellers

This Policy explains how Niwers implements these requirements.

1. APPLICABILITY

1.1. Statutory Definition of High-Volume Third Party Seller

Under 15 U.S.C. § 45f(a)(2), a "high-volume third party seller" is a participant in an online marketplace who:

• (a) Is not the operator of the marketplace, and
• (b) Within any continuous 12-month period during the previous 24 months, has entered into:
  • 200 or more discrete sales or transactions of new or unused consumer products, AND
  • An aggregate gross revenue of $5,000 or more

1.2. Niwers's Application

Niwers applies INFORM Act verification to ALL Sellers, not just high-volume sellers, to:

• Simplify operations and onboarding
• Build buyer trust
• Reduce fraud and counterfeit risk
• Future-proof against regulatory changes

This means every Seller on the Niwers Platform completes INFORM Act-style verification, regardless of transaction volume or revenue.

2. VERIFICATION REQUIREMENTS

2.1. Information Niwers Collects from Sellers

In accordance with 15 U.S.C. § 45f(a)(1)(A), Niwers collects from each Seller:

2.2. Verification Timeline

• Initial verification: Within 10 days of Seller registration
• Re-verification: Annually, within 30 days of Niwers's request
• Update obligation: Sellers must report changes within 5 business days

2.3. Verification Methods

Per 15 U.S.C. § 45f(a)(1)(B), Niwers verifies information through:

• (a) Government-issued records (e.g., IRS TIN matching, state business records)
• (b) Third-party verification services (e.g., Persona, Stripe Identity)
• (c) Bank-issued documents (statements, voided checks)
• (d) Tax documents (W-9 form completion)

2.4. Failed Verification

If a Seller fails verification or provides false information:

• Account is suspended pending resolution
• Existing listings are removed
• After 10 days without resolution, account is permanently terminated
• Pending payouts are released only after compliance is achieved

3. SELLER INFORMATION DISCLOSURE TO BUYERS

In accordance with 15 U.S.C. § 45f(b), Niwers discloses certain Seller information to consumers in a clear and conspicuous manner.

3.1. Information Disclosed (Per § 45f(b)(2)(A))

For each high-volume third-party Seller, Niwers displays in the seller's storefront/profile:

• (a) Full name of the Seller (or business name if applicable)
• (b) Physical address, EXCEPT:
  • For natural persons (individuals not operating as a business), Niwers may display:
    • The country and state of residence (in lieu of full address), OR
    • A PO Box address (Niwers may provide one to qualifying Sellers)
• (c) Email address
• (d) Phone number

3.2. Where Information Is Displayed

Niwers displays Seller information in at least two locations:

1. Seller Storefront / Profile Page — visible to all visitors
2. Order Confirmation Email — sent to Buyer after each purchase

3.3. Order-Specific Disclosure (Per § 45f(b)(2)(B))

For each order placed, Niwers also includes in the Buyer's order confirmation:

• The identity of the Seller for that specific item
• The same Seller information from Section 3.1

3.4. Updates to Information

If Seller information changes after a sale:

• Updated information is displayed within 24 hours of Niwers receiving the update
• Past order confirmations are not retroactively updated

4. CONSUMER REPORTING MECHANISM

In accordance with 15 U.S.C. § 45f(b)(2)(C), Niwers maintains a reporting mechanism allowing consumers to report:

• Suspicious activity by a Seller
• Potential counterfeit products
• Stolen goods
• Unsafe products
• Other concerns

4.1. How to Report

Method 1: In-App

• On a product listing → tap "Report Seller" → fill out form

Method 2: Email

• Send to [email protected]
• Subject: "INFORM Act — Suspicious Seller Report"
• Include: Seller username, listing URL, description of concern, supporting evidence

Method 3: Web Form (Coming Soon)

• niwers.com/us/report-seller (to be launched at app store launch)

4.2. Niwers's Response

Niwers will:

• Acknowledge the report within 48 hours
• Investigate within 5 business days
• Take appropriate action, which may include:
  • Removing listings
  • Suspending the Seller
  • Permanently terminating the Seller account
  • Reporting to law enforcement
  • Reporting to FTC and state Attorneys General

4.3. Reporter Confidentiality

To the extent permitted by law:

• Reporter identity is kept confidential
• Reporter information is not shared with the reported Seller
• Niwers may aggregate reports for trend analysis

4.4. False Reports

False reports made in bad faith may result in:

• Account suspension or termination of the reporter
• Civil liability under applicable law
• Criminal prosecution if perjurious

5. SELLER NOTIFICATION REQUIREMENTS

In accordance with 15 U.S.C. § 45f(c), Niwers notifies Sellers of disclosure requirements at:

• Account creation
• Annually during re-verification
• When information changes that affects disclosure

The Seller's acceptance of the Niwers Seller Agreement Section 3.4 includes consent to all required disclosures.

6. RECORDS AND RETENTION

6.1. Niwers's Record Keeping

Niwers maintains records of:

• All Seller verification information
• Verification dates and methods
• Re-verification compliance
• Reports received and Niwers actions taken
• Communications with Sellers regarding INFORM Act compliance

6.2. Retention Period

Per typical regulatory practice, Niwers retains INFORM Act records for 5 years after Seller account closure (unless longer retention is required by law).

6.3. Federal/State Access

Niwers will provide records to:

• Federal Trade Commission (FTC) in response to valid requests
• State Attorneys General in response to valid requests
• Other law enforcement with appropriate legal process

7. SELLER OBLIGATIONS UNDER INFORM ACT

7.1. Truthful Information

Sellers must provide truthful, complete, and current information. Submitting false information may result in:

• Account termination
• Civil liability
• Criminal prosecution under applicable federal and state law

7.2. Update Obligation

Sellers must update their information within 5 business days of any change, including:

• Change in business name or structure
• Change in tax ID
• Change in address
• Change in contact information
• Change in bank account

7.3. Cooperation with Verification

Sellers must cooperate with annual re-verification within 30 days of Niwers's request. Non-cooperation results in account suspension.

8. INFORM ACT ENFORCEMENT

8.1. FTC Enforcement

The Federal Trade Commission has primary enforcement authority over the INFORM Act. Penalties for non-compliance include:

• Civil penalties up to $50,140 per violation (current FTC penalty amount, adjusted for inflation)
• Injunctive relief
• Other remedies under FTC Act Section 5

8.2. State Attorney General Enforcement

State Attorneys General have parallel enforcement authority and may pursue:

• Civil penalties
• Injunctive relief
• Restitution for affected consumers

8.3. Niwers's Compliance Commitment

Niwers takes INFORM Act compliance seriously and:

• Implements verification systems aligned with FTC guidance
• Trains staff on compliance procedures
• Maintains records for FTC/state access
• Reports verification metrics in annual compliance review

9. INTERPLAY WITH OTHER LAWS

9.1. Section 230 (CDA)

The INFORM Act does not override Section 230 protections for online services. Niwers retains Section 230 immunity for user-generated content while complying with INFORM Act verification and disclosure requirements.

9.2. State Consumer Protection Laws

INFORM Act is federal floor, not ceiling. State consumer protection laws may impose additional requirements (e.g., state-level marketplace registration). Niwers complies with all applicable state laws.

9.3. Privacy Laws

INFORM Act disclosure of Seller information is required by federal law and does not violate state privacy laws (CCPA, VCDPA, etc.). Sellers consent to this disclosure as a condition of participating in the Niwers Platform.

9.4. Tax Reporting Interplay

INFORM Act verification overlaps with IRS Form 1099-K reporting requirements. Niwers uses common verification data for both purposes, reducing duplicate effort.

10. INTERNATIONAL SELLERS

Niwers currently restricts Sellers to:

• U.S. tax residents with valid TIN
• Sellers with valid U.S. bank accounts
• Sellers with U.S. business or residential addresses

International sellers wishing to sell on the Niwers Platform must:

• Establish a U.S. business presence
• Obtain U.S. tax identification (EIN)
• Meet all INFORM Act and other compliance requirements

11. CONTACT

12. UPDATES TO THIS POLICY

Niwers may update this Policy as necessary to comply with regulatory changes or operational improvements. Updates effective per the Terms of Service modification process.

Version: 2026-05-v1.0 Effective Date: pending — company being formed