(a) An online marketplace shall require that a high-volume third-party seller on the online marketplace's platform provide the online marketplace with the following information not later than ten days after qualifying as a high-volume third-party seller on the platform: (1) A bank account number or, if the high-volume third-party seller does not have a bank account, the name of the payee for payments issued by the online marketplace to the high-volume third-party seller. The required bank account or payee information shall be provided by the high-volume third-party seller to any of the following: (i) The online marketplace.(ii) A payment processor or other third party contracted by the online marketplace to maintain the information if the online marketplace ensures that the online marketplace can obtain the information on demand from the payment processor or other third party.(2) Contact information for the high-volume third-party sellers as follows:(i) If the high-volume third-party seller is an individual, the individual's name.(ii) If the high-volume third-party seller is not an individual, one of the following forms of contact information: (A) A copy of a valid government-issued identification for an individual acting on behalf of the high-volume third-party seller, including the individual's name.(B) A copy of a valid government-issued record or tax document, including the business name and physical address of the high-volume third-party seller.(iii) A business tax identification number or, if the high-volume third-party seller does not have a business tax identification number, a taxpayer identification number.(iv) A current working telephone number.(v) A current working email address.(b) An online marketplace shall have all of the following duties:(1) Periodically, but not less than annually, issue a written or electronic notice to a high-volume third-party seller on the online marketplace's platform of the requirement to keep the information collected under subsection (a) current. (2) Require a high-volume third-party seller on the online marketplace's platform to, not later than ten days after receiving the notice under this subsection:(i) Submit any changes to the information under subsection (a).(ii) Certify there have been no changes to the information required under subsection (a).(c) Immediately following the ten days, if a high-volume third-party seller does not comply with subsection (b)(2), the online marketplace shall provide the high-volume third-party seller with a second written or an electronic notice and an opportunity to comply with subsection (b)(2).(d) If a high-volume third-party seller fails to comply within ten days after the issuance of the second notice, the online marketplace shall suspend the future sales activity of the high-volume third-party seller until the high-volume third-party seller complies with subsection (b)(2).(e) An online marketplace shall verify all of the following:(1) The information collected under subsection (a) not later than ten days after the collection.(2) A change to the information under subsection (a) not later than ten days after being notified of the change by a high-volume third party seller under subsection (b)(2)(i).(f) If a high-volume third-party seller provides a copy of a valid government-issued record or tax document under subsection (a)(2)(ii)(B), the information contained in the record or tax document shall be presumed to be verified as of the date of issuance of the record or tax document.(g) Data collected solely to comply with the requirements of this section may not be used for any other purpose unless required by Federal or State law. An online marketplace shall implement and maintain reasonable security procedures and practices, including administrative, physical and technical safeguards, appropriate to the nature of the data collected under this section and the purposes for which the data will be used, to protect the data from unauthorized use, disclosure, access, destruction or modification.(h) An online marketplace shall require a high-volume third-party seller that has an aggregate total of twenty thousand dollars ($20,000) or more in annual gross revenues on the online marketplace and uses the online marketplace's platform to do all of the following:(1) Provide the information specified under subsection (i) To the online marketplace.(2) Disclose the information specified under subsection (i) to a consumer in a conspicuous manner in all of the following: (i) The order confirmation message or other document or communication made to the consumer after a purchase is finalized.(ii) The consumer's account transaction history.(i) Except as provided under subsection (j), a high-volume third-party seller specified under subsection (h) shall provide and disclose all of the following information in accordance with subsection (h) : (1) The identity of the high-volume third-party seller, including the full name of the high-volume third-party seller, which may include the high-volume third-party seller's name or company name or the name by which the high-volume third-party seller or company operates on the online marketplace.(2) The physical address of the high-volume third-party seller.(3) The contact information for the high-volume third-party seller to allow for the direct, unhindered communication with the high-volume third-party seller by a consumer on the online marketplace , including any of the following: (i) A current working telephone number.(ii) A current working email address.(iii) Any other means of direct electronic messaging, including messaging provided by the online marketplace.(4) Whether the high-volume third-party seller used a different seller than listed on the product listing, prior to purchase, to supply a consumer product to a consumer and, upon the request of the consumer who purchased the consumer product from the high-volume third-party seller via the online marketplace, the information specified under clauses (1), (2) and (3) relating to the different seller.(j) Subject to the limitations under subsection (k), upon the request of a high-volume third-party seller, an online marketplace may provide for the partial disclosure of the information specified under subsection (i)(1), (2) and (3) to a consumer in accordance with the following:(1) If the high-volume third-party seller certifies to the online marketplace that the high-volume third-party seller does not have a business address and only has a residential street address, or has a combined business and residential address, the online marketplace may do any of the following:(i) Disclose to the consumer only the country and, if applicable, the state where the high-volume third-party seller resides.(ii) Inform the consumer that there is no business address available for the high-volume third-party seller and that consumer inquiries should be submitted to the high-volume third-party seller by telephone, email or any other means of electronic messaging provided to the high-volume third-party seller by the online marketplace.(2) If the high-volume third-party seller certifies to the online marketplace that the high-volume third-party seller is a business that has a physical address for product returns, the online marketplace may disclose the high-volume third-party seller's physical address for product returns.(3) If the high-volume third-party seller certifies to the online marketplace that the high-volume third-party seller does not have a telephone number other than a personal telephone number, the online marketplace shall inform the consumer that there is no telephone number available for the high-volume third-party seller and consumer inquiries should be submitted to the high-volume third-party seller's email address or other means of electronic messaging provided to such seller by the online marketplace. (k) If an online marketplace becomes aware that a high- volume third-party seller has made a false representation to the online marketplace to justify a partial disclosure under subsection (j) or the high-volume third-party seller has requested and received an authorization for a partial disclosure under subsection (j) and has not provided responsive answers within a reasonable time frame to a consumer inquiry submitted to the high-volume third-party in accordance with subsection (i), the online marketplace shall, after providing the high-volume third-party seller with a written or an electronic notice and an opportunity to respond not later than ten days after the issuance of the notice, suspend the future sales activity of the high-volume third-party seller unless the high-volume third-party seller consents to the disclosure of the identity information required under subsection (i)(1), (2) and (3).(l) An online marketplace shall, in a clear and conspicuous manner, disclose to a consumer on each product listing of a high-volume third-party seller a reporting mechanism that allows for electronic and telephonic reporting of suspicious marketplace activity to the online marketplace.(m) If a high-volume third party seller does not comply with the requirements to provide and disclose information on the platform under this section, the online marketplace shall, after providing the high-volume third-party seller with a written or an electronic notice and an opportunity to provide or disclose the information not later than ten days after the issuance of the notice, suspend the future sales activity of the high-volume third-party seller until the high-volume third-party seller complies with the requirements under this section. (n) This section shall not be construed to prevent an online marketplace from preventing fraud, abuse or spam through any legal capacity on the online marketplace.(o) The attorney general shall enforce the provisions of this section. In addition to the relief under this act pursuant to sections 4 and 4.1, A civil penalty of up to one thousand dollars ($1,000) may be levied against any person or entity that violates this section. A penalty may be levied for each violation.(p) A political subdivision may not establish, mandate or otherwise require an online marketplace to collect or verify information from a high-volume third-party seller or disclose information to a consumer.(q) As used in this section:"Consumer product" as defined under section 101(1) of the Magnuson-Moss Warranty-Federal Trade Commission Improvement Act ( Public Law 93-637, 15 U.S.C. § 2301 (1)).
"High-volume third-party seller" means a participant in an online marketplace who is a third-party seller and who, for a continuous period of twelve months during the previous twenty-four months, has entered into at least two hundred discrete sales of new or unused consumer products and an aggregate total of at least five thousand dollars ($5,000) gross revenues. For purposes of calculating the number of discrete sales or the aggregate gross revenues under this definition, an online marketplace shall only count sales made through the online marketplace and for which payment was processed by the online marketplace directly or through the online marketplace's payment processor.
"Online marketplace" means any person or entity that operates a consumer-directed, electronically based or accessed platform that includes features that allow for, facilitate or enable a third-party seller to engage in the sale, purchase, payment, storage, shipping or delivery of a consumer product in the United States; is used by a third-party seller and has a contractual or similar relationship with a consumer to govern the consumer's use of the platform to purchase a consumer product.
"Seller" means a person who sells, offers to sell or contracts to sell a consumer product through an online marketplace's platform.
"Third-party seller" means a seller, independent of an online marketplace, who sells, offers to sell or contracts to sell a consumer product in the United States through an online marketplace. The term does not include any of the following:
(1) A seller who operates an online marketplace's platform.(2) A business entity that meets all of the following criteria:(i) The business entity has made the business entity's name, business address and contact information available to the public.(ii) The business entity has an ongoing contractual relationship with an online marketplace to provide the online marketplace with the manufacturing, distribution, wholesaling or fulfillment of the shipment of a consumer product.(iii) The business entity had provided the information described under subsection (a) to an online marketplace, which has been verified in accordance with this section. "Verify" means to confirm information provided to an online marketplace under this section, including the use of a method that enables the online marketplace to reliably determine the validity of the information corresponding to a high-volume third-party seller or an individual acting on the high-volume third-party seller's behalf and confirm the information is not misappropriated or falsified.
Added by P.L. TBD 2022 No. 64, § 1, eff. 1/9/2023.