Compliance with Laws for Online Businesses and Amazon Sellers: FTC, FDA, EPA and More

By Paul S. Rafelson, Founder, Rafelson Law PLLC

Products sold online follow the same federal and state rules as products sold in stores. For online businesses, including Amazon sellers, the agencies that most often matter are the FTC (advertising and reviews), the FDA (food, supplements, cosmetics, drugs and devices), the EPA (pesticide registration) and the CPSC (children’s products). We help business owners review listings, labels and claims, and respond when Amazon or a regulator asks for documents.

Which laws and agencies matter most to online businesses?

Which rules apply depends on what the product is, what the label and listing say about it and where it is sold. These are the agencies we see most often in client matters:

FTC. Advertising and marketing claims must be truthful and not misleading, and a business needs a reasonable basis for the claims it makes. The FTC also has a rule on consumer reviews and testimonials, in effect since October 21, 2024, that addresses fake reviews, certain review incentives and review suppression.
FDA. The FDA regulates the labeling and claims for food, dietary supplements, cosmetics, drugs and medical devices. An ingredient panel, a health claim or dosage directions can each raise a compliance question.
EPA. Under FIFRA, pesticides sold or distributed in the United States must be registered with the EPA. A product with pest-control or disinfectant claims falls into this category unless a narrow exemption applies, such as the minimum-risk pesticide exemption.
CPSC. Children’s products subject to a children’s product safety rule require third-party testing at a CPSC-accepted lab and a written Children’s Product Certificate. The importer issues the certificate. If you import your own product, you issue it, not the factory. For a product designed or intended primarily for children 12 or younger, the certificate and supporting test reports are part of the paperwork Amazon may ask to see.
State law. States add their own requirements. California’s Proposition 65 is one example; see our Prop 65 guide for online businesses.

Sources: FTC, The Consumer Reviews and Testimonials Rule: Questions and Answers; EPA, About Pesticide Registration; CPSC, Children’s Product Certificate.

How do compliance problems reach an Amazon seller?

Compliance problems reach a seller by three routes:

Amazon asks. Amazon can request documents such as test reports, certificates, registrations or label images before it keeps a listing active. A missed deadline or an incomplete answer can lead to a listing removal or an account issue.
A regulator or consumer raises it. This can be a letter from an agency, a state attorney general or a private party.
A competitor reports it. A competing seller can report a listing to Amazon. We cover that from the other side in our Weaponized Compliance service.

If a compliance question has already affected your account, our account suspension guide explains the appeal process.

What can we do for your business?

Listing and label review. We read your listings, labels, packaging and inserts against the rules that apply to your product category and flag claims that may need support or a change.
Claim review. We look at health, safety and performance claims. We also look at “made in” claims and the way you handle reviews and incentives.
Registrations and certificates. We help business owners work out which registrations or certificates a product needs and what documents to keep.
Responding to Amazon or an agency. We help prepare the documents and written response when Amazon or a regulator asks for them.
Deals. Buyers and their lawyers read compliance history, and gaps show up as price cuts, escrow or indemnity terms. See our buying guide and selling guide.

How do I get started?

Realistic expectations

We cannot guarantee that a listing will stay active or that a regulator or Amazon will accept a response. We cannot guarantee any particular outcome.
Rules and agency guidance change, so check the current requirement for your product.
Past results do not guarantee similar outcomes.

Frequently asked questions

Do FTC, FDA and EPA rules apply to products sold on Amazon?

Yes. Selling online does not change which laws apply to a product. The FTC covers advertising claims and reviews, the FDA covers labeling and claims for food, supplements, cosmetics, drugs and devices. The EPA covers pesticide registration. Which of them applies to your product depends on what it is and what the label and listing say about it.

What happens if Amazon asks me for compliance documents?

Amazon can ask for items such as test reports, certificates, registrations or label images, and it sets a deadline. An incomplete or late answer can lead to a removed listing or an account issue. Amazon sets the deadline and judges the answer. The first response often fixes the record for every later appeal, so what you include and what you leave out both matter. We prepare the response with you.

Do I need a Children’s Product Certificate for my product?

If a product is designed or intended primarily for children 12 or younger and is subject to a children’s product safety rule, the CPSC requires third-party testing and a written Children’s Product Certificate. Some products fall under exemptions or different rules, so the answer depends on the product.

Can I be responsible for fake reviews on my listings?

Possibly. The FTC’s rule on reviews and testimonials prohibits a business from writing or buying fake reviews, and from offering incentives conditioned on a particular sentiment. Amazon goes further. Amazon bars payment, refunds, free products or other rewards for reviews outside Amazon Vine. On Amazon, any incentive for a review puts your account at risk. Ordinary customers are not liable under the FTC rule. The FTC also says other review practices can violate the FTC Act, depending on the facts.

Does compliance matter if I plan to sell my business?

It can. Buyers and their lawyers commonly ask about labels, claims, registrations and certificates, and gaps can affect deal terms. Reviewing those items before you go to market gives you time to fix them. See our guide to selling an Amazon or eCommerce business.

Weaponized Compliance

Reporting a competitor’s regulatory violations, and checking your own products.

Prop 65 for online businesses

California’s warning law for products shipped there.

Amazon account suspension

If a compliance question has reached your account.

Intellectual property for online businesses

Trademarks, Brand Registry, copyright and patent disputes.

Sources and notes

FTC, The Consumer Reviews and Testimonials Rule: Questions and Answers (November 2024): ftc.gov.
EPA, About Pesticide Registration: epa.gov.
CPSC, Children’s Product Certificate: cpsc.gov.

About the author

Paul S. Rafelson is the Founder of Rafelson Law PLLC, a law firm for eCommerce and online business owners. The firm’s practice focuses on Amazon account issues, eCommerce mergers and acquisitions, Proposition 65 and related corporate work. He holds an LL.M. in Taxation from NYU (2017). He founded the Online Merchants Guild in 2018, a volunteer-led trade association run by and for Amazon sellers. He taught state and local taxation as an adjunct professor at Pace Law School. Katherine (Katie) Dariano is a Senior Counsel at the firm. Full biography.

Background

Founder, Rafelson Law PLLC; office at 2255 Glades Rd, Suite 319A, Boca Raton, FL 33431.
Admitted to the bars of Florida (2005) and New Jersey (2006). Katherine Dariano is admitted in New York (2021).
LL.M. in Taxation, NYU (2017).
Before private practice, Paul was in-house counsel at Microsoft, Walmart and GE.
Paul founded the Online Merchants Guild in 2018, a volunteer-led trade association run by and for Amazon sellers. More on the Guild's About page.
Paul taught state and local taxation as an adjunct professor at Pace Law School.

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