Regular Session 2021-2022 Senate Bill 0895 P.N. 1590

PRIOR PRINTER'S NO. 1153

PRINTER'S NO. 1590

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

895

Session of

2021

INTRODUCED BY REGAN, MENSCH, YUDICHAK, LAUGHLIN, PITTMAN,

MARTIN, AUMENT, YAW, SABATINA, BREWSTER, ROBINSON, STEFANO

AND SCAVELLO, OCTOBER 18, 2021

SENATOR TOMLINSON, CONSUMER PROTECTION AND PROFESSIONAL

LICENSURE, AS AMENDED, APRIL 13, 2022

AN ACT

Amending the act of December 17, 1968 (P.L.1224, No.387),

entitled "An act prohibiting unfair methods of competition

and unfair or deceptive acts or practices in the conduct of

any trade or commerce, giving the Attorney General and

District Attorneys certain powers and duties and providing

penalties," providing for COLLECTION, VERIFICATION AND

disclosure of information by online marketplaces to inform

customers CONSUMERS.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The act of December 17, 1968 (P.L.1224, No.387),

known as the Unfair Trade Practices and Consumer Protection Law,

is amended by adding a section to read:

Section 9.4. Disclosure of Information by Online

Marketplaces to Inform Customers.--(a) The following shall

apply:

(1) An online marketplace shall require that a high-volume

third-party seller on the online marketplace provide the online

marketplace with all of the following information within twenty-

four hours of becoming a high-volume third-party seller:

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(i) Accurate bank account information that has been

confirmed directly by the online marketplace, a payment

processor or other third party contracted by the online

marketplace. 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

high-volume third-party seller may provide the bank account or

payee information under this subclause to the online

marketplace, a payment processor or other third party contracted

by the online marketplace to maintain the information. The

online marketplace may obtain the bank account or payee

information under this subclause on demand from a payment

processor or other third party contracted by the online

marketplace.

(ii) Contact information, including all of the following:

(A) If the high-volume third-party seller is an individual,

a copy of a government-issued photo identification for the

individual that includes the individual's name and physical

address.

(B) If the high-volume third-party seller is not an

individual, all of the following:

(I) A copy of a government-issued photo identification for

an individual acting on behalf of the high-volume third-party

seller that includes the individual's name and physical address.

(II) A copy of a government-issued record or tax document

that includes the business name and physical address of the

high-volume third-party seller.

(III) A working email address and working telephone number

for the high-volume third-party seller.

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third-party seller does not have a business tax identification

number, a taxpayer identification number.

(D) Whether the high-volume third-party seller is

exclusively advertising or offering the consumer product on the

online marketplace or currently advertising or offering for sale

the same consumer product on any other Internet websites other

than the online marketplace.

(2) The online marketplace shall verify the information

provided by the high-volume third-party seller under clause (1)

and each change to the information within three days. If the

high-volume third-party seller provides a copy of a valid

government-issued tax document under clause (1)(ii)(B)(II),

information contained within the tax document shall be presumed

to be verified as of the date of issuance of such record or

document.

(3) The online marketplace shall, on at least an annual

basis, notify the high-volume third-party seller on the online

marketplace that the high-volume third-party seller must inform

the online marketplace of each change to the information

provided by the high-volume third-party seller under clause (1)

within three days of receiving the notice under this clause. As

part of the notice under this clause, the online marketplace

shall instruct the high-volume third-party seller to

electronically certify that the high-volume third-party seller's

information under clause (1) is unchanged or that the high-

volume third-party seller is providing a change to the

information. If the online marketplace becomes aware that the

high-volume third-party seller has not complied with the

provisions of this clause, the online marketplace shall suspend

the high-volume third-party seller's participation on the online

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marketplace until the high-volume third-party seller complies

with the provisions of this clause.

(b) The following shall apply:

(1) Except as provided under clause (2), an online

marketplace shall require a high-volume third-party seller on

the online marketplace to provide all of the following

information:

(i) The identity of the high-volume third-party seller,

including all of the following information:

(A) The full name of the high-volume third-party seller.

(B) The full physical address of the high-volume third-party

seller.

the manufacturing, importing or reselling of consumer products.

(D) Contact information for the high-volume third-party

seller, including a functioning telephone number and email

address. The online marketplace may provide the functioning

email address to the high-volume third-party seller by the

online marketplace.

(ii) Any other information determined to be necessary by the

online marketplace to address any potential circumvention or

evasion of the requirements under this clause.

(2) Subject to clause (3), upon the request of the high-

volume third-party seller, the online marketplace may provide

for partial disclosure of the identity information required

under clause (1) in any of the following situations:

(i) If the high-volume third-party seller demonstrates to

the online marketplace that the high-volume third-party seller

does not have a business address and only has a residential

street address, the online marketplace may:

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(A) direct the high-volume third-party seller to disclose

only the country and, if applicable, the state where the high-

volume third-party seller resides on the product listing; and

(B) inform consumers 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 or email.

(ii) If the high-volume third-party seller demonstrates to

the online marketplace that the seller is a business that has a

physical address for product returns, the online marketplace may

direct the high-volume third-party seller to disclose the high-

volume third-party seller's physical address for product

returns.

(iii) If the high-volume third-party seller demonstrates 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 consumers that there

is no telephone number available for the high-volume third-party

seller and that consumer inquiries should be submitted to the

high-volume third-party seller's email.

(3) If an online marketplace becomes aware that a high-

volume third-party seller has made a false representation to the

online marketplace in order to justify the provision of a

partial disclosure under clause (2) or that a high-volume third-

party seller who has requested and received a provision for a

partial disclosure under clause (2) has not provided responsive

answers within a reasonable time period to consumer inquiries

submitted to the high-volume third-party seller by telephone or

email, the online marketplace shall withdraw the provision for

partial disclosure under clause (2) and require the full

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disclosure of the high-volume third-party seller's identity

information required under clause (1) within three business

days' notice to the high-volume third-party seller.

(4) The online marketplace shall disclose to a consumer, in

a conspicuous manner on the product listing of the high-volume

third-party seller, a reporting mechanism that allows for

electronic and telephonic reporting of suspicious marketplace

activity to the online marketplace and a message encouraging

the consumer to report suspicious activity to the online

marketplace.

online marketplace that warehouses, distributes or otherwise

fulfills a consumer product order shall disclose to the consumer

the identification of a high-volume third-party seller supplying

the consumer product if different than the seller listed on the

product listing page.

(d) Violations of this section shall be declared unlawful

under section 3 of this act and shall be subject to the

penalties imposed under this act.

(e) A political subdivision may not establish, mandate or

otherwise require an online marketplace to verify information

from a high-volume third-party seller on a one-time or ongoing

basis or disclose information to consumers.

(f) The Bureau of Consumer Protection within the Office of

Attorney General may promulgate regulations regarding the

collection and verification of information from high-volume

third-party sellers under subsections (a) and (b).

(g) As used in this section:

"Consumer product" means tangible personal property that is

distributed in commerce and is normally used for personal,

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family or household purposes, including tangible personal

property intended to be attached to or installed in real

property without regard to whether the tangible personal

property is attached or installed.

"High-volume third-party seller" means a participant in an

online marketplace who is a third-party seller and who, in any

continuous twelve-month period during the previous twenty-four

months, has entered into two hundred or more discrete sales or

transactions of new or unused consumer products resulting in the

accumulation of an aggregate total of five thousand dollars

($5,000) or more in gross revenues.

"Online marketplace" means an electronically based or

accessed platform that hosts high-volume third-party sellers and

includes features which allow for, facilitate or enable high-

volume third-party sellers to engage in the sale, purchase,

payment, storage, shipping or delivery of a consumer product in

the United States.

"Seller" means a person who sells, offers to sell or

contracts to sell a consumer product through an online

marketplace.

"Third-party seller" means a seller, independent of an

operator, facilitator or owner 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 shall

not include a seller who:

(1) is operating as a business entity that has made the

business entity's name, business address and working contact

information available to the general public;

(2) has an ongoing contractual relationship with the owner

of the online marketplace to provide for the manufacture,

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distribution, wholesaling or fulfillment of the shipment of

consumer products; and

(3) has provided verified information under subsection (a).

"Verify" means to confirm information provided to an online

marketplace by the use of any of the following:

(1) A third-party or proprietary identity verification

system that has the capability to confirm a seller's name, email

address, physical address and telephone number.

(2) A combination of a two-factor authentication, a public

records search and the presentation of a government-issued

identification.

SECTION 9.4. COLLECTION, VERIFICATION AND DISCLOSURE OF

INFORMATION BY ONLINE MARKETPLACES TO INFORM CONSUMERS.--(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.

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(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 SUBSECTION (B)(1), SUBMIT ANY CHANGES

TO THE INFORMATION UNDER SUBSECTION (A). CERTIFY THERE HAVE BEEN

NO CHANGES TO THE INFORMATION REQUIRED UNDER SUBSECTION (A).

THIRD-PARTY SELLER DOES NOT COMPLY WITH SUBSECTION (B)(2), THE

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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).

(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

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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.

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(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

REQUEST, 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

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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

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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 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 UNDER

SECTIONS 4 AND 4.1, A CIVIL PENALTY OF UP TO $1,000 MAY BE

LEVIED AGAINST A PERSON OR ENTITY THAT VIOLATES A PROVISION OF

THIS SECTION. A PENALTY MAY BE LEVIED FOR EACH VIOLATION.

(P) A POLITICAL SUBDIVISION SHALL 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" MEANS AS THE TERM IS DEFINED UNDER 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

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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:

(1) 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 ;

(2) IS USED BY A THIRD-PARTY SELLER; AND

(3) 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

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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.

Section 2. This act shall take effect in 180 days.

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